Do you remember the last time you went to the bank to deposit money? Waiting in long lines, filling out forms, checking information... After a long day of work, I finally deposited the money, and while breathing a sigh of relief, the bank staff handed you a booklet or a note. You take it and stuff it in your bag, and you don't think much of it.
But you know what? It's this seemingly inconspicuous little thing that is related to whether your money can be safely stored and easily accessed. That's right, today we will talk about this problem that many people ignore: what is the difference between having a book and not having a book when depositing a fixed term in the bank?
Don't be in a hurry to say what is there to talk about, listen to me slowly, I am sure you will sigh after listening: it turns out that there are so many ways to save money!
- Passbook: A favorite of the elderly
When it comes to passbooks, many young people may think that this thing is already a product of the last century. Don't underestimate this "old antique", it is the favorite of many elderly people.
Think about it, your grandparents are holding a passbook, sitting on the sofa and looking over and over, with happy smiles on their faces. It's not Alzheimer's, it's counting money!
There are many benefits of a passbook:
First of all, it is a solid paper certificate. You can clearly see your name, account number, password, deposit amount, interest rate, maturity date, and even the details of each deposit and withdrawal. This is simply a boon for older people who are not very familiar with modern technology.
Secondly, the passbook can be handled in the same name bank in the province or even the whole country. Think about it, if the elderly go out to travel and suddenly want to withdraw some money, as long as they bring their passbook and find a bank with the same name, how convenient it is!
Finally, the passbook has an unexpected benefit: it can give people a sense of stability. As you watch the numbers on your passbook increase day by day, the sense of accomplishment is not comparable to the cold numbers on your phone.
However, the passbook also has its minor drawbacks. For example, you have to carry it with you, and if you accidentally lose it, it can be a big problem. Moreover, every time you deposit and withdraw money, you have to go to the bank and wait in line, which is indeed a bit troublesome.
- Certificate of deposit: a supporting role that is about to retire from the stage of history
After talking about the passbook, let's talk about the certificate of deposit. Truth be told, it's not very common these days. However, as a budget-conscious citizen, we also have to understand, what if we can use it one day?
A certificate of deposit is actually a thin piece of paper with your deposit information written on it. At first glance, it seems to be quite convenient, and it is easier to carry than a passbook with a piece of paper.
However, the disadvantages of certificates of deposit are also obvious:
First of all, it's too easy to break. You think, a piece of tissue paper in your wallet will be crumpled in a few days, and if you accidentally encounter a rainy day, it will be miserable.
Secondly, the information on the certificate of deposit is too dense. The dense small characters are dazzling to see. For those of us who don't have very good eyesight, it's a nightmare.
Finally, the security of certificates of deposit is also debatable. If you accidentally lose it, it's a big problem. Although the bank has a service of reporting the loss and reissuing it, the process is not an ordinary cumbersome.
Therefore, many banks do not recommend the use of certificates of deposit now. If you go to the bank one day and someone takes the initiative to give you a certificate of deposit, then you have to be careful.
- Electronic certificates of deposit: the new favorite of young people
After talking about the passbooks that the elderly like and the certificates of deposit that middle-aged people reluctantly accept, let's talk about the favorite of young people: electronic certificates of deposit.
Electronic certificates of deposit, as the name suggests, are all about putting deposit information online. You don't need to hold a notebook or a piece of paper, as long as you have a mobile phone, you can check your deposit status anytime, anywhere.
There are many advantages of electronic certificates of deposit:
First of all, it's convenient! You can deposit money if you want, and withdraw money if you want to withdraw money, all on your mobile phone, and you don't have to run to the bank at all. Especially for those of us who work 9-to-5, it's a boon.
Secondly, the security is also high. If you lose your passbook or deposit certificate, you're in big trouble. But what about electronic certificates of deposit? Unless someone steals your phone and knows your password, they won't be able to touch your money at all.
Finally, electronic certificates of deposit can also provide many value-added services. For example, you can set up maturity reminders, auto-renew, and even recommend some financial products based on your deposits. This is something that cannot be done with passbooks and certificates of deposit.
However, electronic certificates of deposit also have their drawbacks. For example, you have to keep your account and password safe at all times. If you accidentally leak it, it will be a big problem. Moreover, for some elderly people who are not very good at using smartphones, electronic certificates of deposit may still be a bit difficult.
When it comes to saving money, let's talk about the most important question: which way is more cost-effective?
Having a book deposit seems old-fashioned, but it has its unique advantages. The interest on the money you deposit is a certainty. When it's due, you can give as much as you want, and every penny is not less. However, if you need to withdraw the money in advance, you must be prepared to lose part of the interest. The bank will recalculate it according to the current interest rate, which may be a lot less.
No book deposit has played a new trick. Some banks offer flexible access products that allow you to access some of your funds at any time while maintaining a high interest rate on a regular basis. This is a good thing in the snow. Think about it, if you suddenly need money for an urgent matter at home, you don't have to lose high interest, and you can respond in time, how the best of both worlds.
For us wage earners, this flexibility is too important. After all, no one can say when they will encounter unexpected expenses, and having a deposit that can be accessed at any time without affecting the income is simply a good helper to save worry and money.
However, the choice of deposit method will vary from person to person. If you have a lot of money and are unlikely to need it urgently, a traditional regular may be more suitable for you. If your income is unstable, or you are afraid of unexpected situations, then the flexible deposit product without a book may be more appealing to you.
Either way, the key is to weigh your actual needs. After all, the purpose of saving money is to make life easier, not to get yourself in trouble. So, don't just look at the interest rate, but also look at what makes your money profitable and can come in handy when you need it.