With the improvement of living standards, our deposits are gradually increasing, so banks have naturally become the preferred place for everyone to deposit their funds. Keeping money in the bank not only ensures the safety of the principal, but also allows you to earn a certain amount of interest income.
However, have you ever wondered why some people pay much more interest than you when they also keep their money in the bank? What's the secret?
In fact, saving money is not a simple task that can be completed by simply handing over money to bank staff, there is a lot of knowledge involved, and we have a strategy for depositing money in the bank. Today, I would like to share with you five very practical tips for saving money in the bank, I hope it will help you.
1. Don't keep all your money in the same bank. At present, most banks have a deposit insurance system, which means that if the bank goes bankrupt due to poor operation, the principal and interest of the deposit will be fully compensated within 500,000 yuan. The part of the deposit exceeding 500,000 yuan needs to wait for the bank to be liquidated in proportion to the bankruptcy liquidation. Of course, bank bankruptcy is not an easy task, with only four banks declaring bankruptcy since the founding of the country. Therefore, it is recommended that the principal and interest of everyone in the same bank should not exceed 500,000 yuan, just in case.
2. When we go to the bank, don't always stare at products with high interest rates, because high interest rates are likely to mean that it is not a deposit, but a wealth management, insurance or other investment product. High interest rates often come with high risks, so be cautious when choosing wealth management products. If it is an insurance product, be sure to read the specific terms clearly, so as not to lose more than you gain in the end.
3. Try to avoid time deposits with long tenors. Some banks have even cancelled five-year fixed deposits, and some banks have inverted their five-year interest rates, i.e., they are not as high as three-year interest rates. As a result, some people can't wait to put all their savings into a five-year fixed deposit as soon as they see the higher five-year interest rate.
Be sure to think twice before deciding, as five-year fixed deposits are less flexible. Before you make a deposit, it's important to consider how much you're likely to use that money in the next five years. If you already have enough emergency funds, you can also consider saving a five-year fixed deposit.
4. Don't keep all your money in the same tranche of fixed deposits, it's better to spread them out into multiple fixed deposits of different maturities. This makes it easier for us to make tiered deposits. Taking $100,000 as an example, you can put $20,000 into a one-year time deposit, $40,000 into a two-year time deposit, and the remaining $40,000 into a three-year time deposit. After each deposit matures, it will be converted to a three-year fixed deposit at the bank. This way, you will have a fixed deposit due every year, which makes it more flexible to use.
5. If the fixed deposit matures, it is best to go to the bank in person if you have the time. Because some banks stipulate that if you do not go in person, but choose to automatically rollover, the interest will be calculated according to the bank's listed interest rate. If you go to the bank in person to handle the rollover, you can calculate the interest income according to the floating interest rate, which is usually higher. Of course, different bank regulations may vary. For example, there is no difference in the interest rate of a rural commercial bank, whether you go to it in person or not. Therefore, it is important to consult the relevant regulations when making a deposit.