The deposit rate has “floated”, the 5-year deposit is not as good as the 3-year deposit?Professionals give the answer
With the outbreak of COVID-19, many people are becoming more aware of the importance of saving money.After all, there is food in hand.Of course, for many people, bank deposits are not only safer, but also related to interest rates.From the recent period of time, bank interest rates have “floating”.As for savings, there is also a saying circulating in the society recently. Is it better to save for 5 years than for 3 years?Experts have an answer to that question.First, bank deposit interest rate “floating” in the existing financial system, China in addition to the central bank, for each small and medium-sized banks, the annual deposit assessment task.And around the annual Spring Festival, because many people’s wages and year-end bonuses are in place, for some local small and medium-sized banks at this time is undoubtedly the best time to absorb social deposits.Of course, the best way to absorb social savings is to raise deposit rates.For example, The Bank of Nanjing will raise the interest rate on 5-year certificates of deposit and 5-year fixed deposit to 4 percent and 3.85 percent respectively to attract deposits.Local banks such as Shengjing Bank and Tianjin Binhai Bank have also raised interest rates to attract more deposits.We also suggest that if you have any spare money, you might consider putting it in the bank at this time. After all, you can earn a little more interest.Because these local banks may lower deposit interest rates later, everyone’s deposit interest income will be affected.So, the recent Internet spread of five years of savings is not worth three years, is it really so?For this question, tao Ge, who has worked in the bank for many years, gave the answer.Tao ge said, 5 years of savings is not really 3 years of savings cost-effective.For example, a three-year CD will pay 3.538% and a five-year CD will pay 3.194%.From the interest comparison, it is obvious that the interest of 3-year fixed deposit is higher than that of 5-year fixed deposit.And for the bank will be so set up, Tao ge also gave the answer.First, from the reality, most customers seldom consider 5-year fixed deposit because the 5-year fixed deposit time is too long, resulting in poor liquidity of depositors.For example, if you deposit 100,000 yuan in the bank, we will certainly consider a most realistic problem, this 5 years, whether there will be emergency money situation in the home?Obviously, this is going to happen.This is why many customers do not choose 5-year fixed deposit when they deposit money.Naturally, banks are not setting interest rates very high for five-year fixed deposits.Second, from the bank’s point of view, the longer the deposit period, the more disadvantageous for the bank.The reason is simple: the longer a deposit is held, the more interest the bank has to pay, and the higher the cost of collecting deposits.In addition to the higher cost of collecting deposits, banks have to spend a lot of time and manpower managing these deposits every year.We should know that the current small and medium-sized banks in China are basically in the state of self-financing profits and losses.For the bank, it is not willing to take such a high cost of storage, after all, for the bank, but also to make money.Although Chinese residents are very concerned about savings, but from the reality, the factors that affect savings are not only deposit interest.For example, after the central bank cut interest rates in the past, China’s savings are still growing.The reason for this situation is that most of China’s savings are mainly precautionary savings.We say that a certain amount of saving can lead to economic growth, but too much saving can lead to a prolonged slump in the consumer market, which we are in.So, how to solve the current high savings problem in Our country?First, stabilize income expectations and reduce the impact of uncertainty on consumer behavior.The uncertainty of income and expenditure has a significant impact on the consumption and saving behavior of urban households of all income classes, especially when facing the income fluctuation, households tend to increase the saving level to cope with the uncertainty of future income.At present, various institutional reforms have entered the deep water zone. The employment system, income distribution system and other institutions and policies closely related to household income and assets are in the process of improvement, but households still have great uncertainties about their future income.With the gradual implementation of supply-side reform, the adjustment of economic structure, elimination of excess capacity and optimization of factor allocation will also affect residents’ expectations on employment and income, thus increasing precautionary savings and buffer inventory reserves.Therefore, in the process of reform, stabilizing residents’ income expectations and creating a stable macro employment environment can help reduce the precautionary savings level and improve residents’ consumption level.Second, we will gradually raise people’s incomes, especially those of low – and middle-income families, appropriately narrow the gap between the rich and the poor, and improve the income distribution mechanism.Urban residents of middle and low income groups are constrained by relatively strong liquidity and restrain their consumption demand.The consumption level of low-income families is obviously restricted by the income level, and the low level of family assets makes the household savings level more sensitive to various consumption expenditures, but they have to face some rigid expenditures in life.Increasing the income of middle and low income groups is conducive to releasing the consumption potential of these urban residents and improving their quality of life.With the increase of income level, middle-income families can release part of the potential consumption demand, and middle-income families have the motivation to imitate the consumption behavior of higher income class, which can promote the decline of household savings rate.Therefore, improving the overall income level of residents, especially improving the security mechanism for low-income families and narrowing the gap between the rich and the poor play an important role in promoting consumption and reducing the level of household savings.We will adjust the economic structure, promote the rapid development of the service industry, encourage people to start their own businesses, create more jobs and increase people’s labor income.It can also raise people’s income expectations.In terms of income distribution, we should give full play to the role of transfer payments from government finance and taxation in narrowing the gap between the rich and the poor, and promote the transfer payments from the government to be converted into residents’ real income.Summary From the above analysis, in order to complete the task of collecting deposits, many banks in China have begun to raise interest rates.There may be some people who worry about putting their savings into small and medium-sized banks is not safe, for this problem, we need not worry.Because, at present our country has a complete set of management mechanism for the bank bankruptcy, there will not be the situation we worry about.In addition, the interest rate of a three-year deposit is higher than that of a five-year deposit, which is intentionally set by banks to reduce the cost of collecting deposits.So, when you’re making a deposit, you’d better take a 3-year deposit.Finally, I would like to ask you, you are in the region, the local small and medium-sized bank interest rate has been raised?