With the end of 2023, domestic residents are enthusiastic about saving money, but deposit rates have fallen to a record low. Behind this phenomenon is not only the change in the investment environment, but also the people's coping strategies for an uncertain future. Among them, the large certificates of deposit of the four major state-owned banks have become the first choice of many depositors.
Changes in interest rates for the four major state-owned banks
The four major state-owned banks – Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank of China and Bank of China – are the largest banking groups in the country and have been widely favored for their stability and physical outlets across the country. However, since last year, these banks have cut their deposit rates three times in a row, including the interest rate on large certificates of deposit, which has now fallen to a record low.
Investor confusion
In the face of falling interest rates, investors are puzzled: in such a financial environment, how to maintain and increase value has become a difficult problem. For example, a depositor who plans to deposit 300,000 yuan in a large certificate of deposit will have an interest rate of only 5,400 yuan after a year, which is no longer enough to meet many people's expectations for financial growth.
Advantages and disadvantages of large certificates of deposit
Although the current interest rate on large certificates of deposit is not high, it still has certain advantages. First of all, compared with other financial products in the market, large-denomination certificates of deposit are more secure and reliable, with almost no risk. In addition, for ordinary depositors who are not good at financial investment, large certificates of deposit are simple to operate and easy to understand.
But the disadvantages are also obvious. Low interest rates mean that the time value of money is reduced, especially in the context of inflation, and the loss of real purchasing power can be even greater.
Future Trends & Choices
In the face of such a market environment, investors need to choose carefully. On the one hand, you can continue to use large certificates of deposit as part of your asset allocation to ensure the safety of your funds, and on the other hand, you can also consider diversification, such as money market funds, bonds or moderate stock market investments, in order to achieve higher returns.
In addition, some investors have begun to pay attention to the international market and try to obtain more opportunities through overseas investment. However, this requires more specialized knowledge and risk management capabilities.
【Conclusion】 In the current financial environment, domestic residents are facing the challenge of low deposit interest rates. While the large certificates of deposit of the four major state-owned banks provide a stable option, there are still careful trade-offs to be made in asset allocation. In the future, as the financial market continues to evolve, savers will need to be more flexible and find their own financial path.