As the core institution of the financial system, banks are an important channel for residents to save and manage their funds. However, in recent years, some banks have exhibited some unusual behavior, which has aroused people's attention.
These actions may be an important signal that residents need to be vigilant when it comes to saving money.
01.
Interest rates on bank fixed deposits have been inverted
Normally, the longer the bank fixed deposit is saved, the higher the return, but in recent years, many banks have inverted deposit interest rates, and long-term deposit interest rates are lower than short-term deposit interest rates.
For example, at the end of last year, the interest rate for a 3-year fixed deposit was 3.045%, while the interest rate for a 5-year fixed deposit was only 2.6%. Not only that, the five-year fixed deposit interest rate of ICBC is also lower than the three-year fixed deposit interest rate.
Although banks have readjusted deposit interest rates this year, on the whole, there is not much difference between three-year and five-year interest rates.
For example, at present, the three-year fixed deposit interest rate of ICBC and CCB is 1.95%, and the five-year interest rate is 2%.
The reason for this situation is that in addition to the fact that banks want to absorb more depositors' deposits, in fact, it also reflects that the medium- and long-term loan market is relatively weak, the demand for loans is less, and the risks are also greater, and banks do not want to raise deposit interest rates too high, so it will be unprofitable and even lose money.
To put it more generally, in fact, the continuous reduction of deposit interest rates of various banks may also imply the pressure on the profitability of banks.
02.
Bank wealth management products are no longer principal-protected
In the past, people were more inclined to deposit their money in the bank and buy bank wealth management products, which could not only preserve their value, but also obtain higher returns.
However, starting from 2021, the bank's wealth management products will no longer protect the principal, which means that investors need to bear the risks brought by the purchase of wealth management products, and in recent years, some wealth management products have indeed suffered large-scale losses.
However, under normal circumstances, bank wealth management products within R3 are not easy to lose. And it is worth noting that if even the bank's wealth management products will also suffer losses, in fact, this also indirectly reflects the risk of the entire capital market, and the bank can also find absolutely safe investment varieties in the rise.
It is worth noting that at present, the financial risk assessment level in mainland China is divided into five levels: low risk, medium low risk, medium risk, medium high risk, and high risk, and the corresponding logos are R1, R2, R3, R4, and R5. The risk appetite for each level is as follows:
R1 corresponds to a cautious risk appetite – low risk;
R2 corresponds to a moderate risk appetite – medium to low risk;
R3 corresponds to a balanced risk appetite – medium risk;
R4 level corresponds to aggressive risk bias - medium and high risk;
The R5 level corresponds to an aggressive risk appetite – high risk.
03.
There is a shortage of large certificates of deposit
Traditionally, large certificates of deposit (CDs) have been a relatively safe and rewarding way to invest, attracting many residents to invest their money.
However, in recent years, some banks have either issued large certificates of deposit in small quantities and have been snatched up, or banks have stopped issuing large-value certificates of deposit.
This is because the interest rate on large-amount certificates of deposit is higher than that of bank fixed deposits, and banks are now reducing their mortgage business, business loans, consumer loans, and other loans. As a result, the higher interest rate given by large-denomination certificates of deposit will squeeze the bank's income space, so in recent years, banks have rarely issued large-denomination certificates of deposit.
For example, some banks have announced that they will suspend the issuance of large-denomination certificates of deposit and only accept the renewal of deposits by existing customers. For residents, the inability to purchase or the lack of options for large certificates of deposit may have an impact on capital allocation and investment plans.
04.
How residents are coping
1. Diversified deposits
In order to ensure the safety of the principal and reduce the risk, it is recommended that depositors spread their funds to multiple reliable banks to reduce concentration risk.
2. Pay attention to bank announcements regularly
Keep abreast of the bank's interest rate adjustments, product changes, and other information so that you can make corresponding adjustments.
3. Choose wealth management products carefully
Before saving money, ordinary users must determine whether it is saving, so as to avoid mistakenly purchasing financial management and facing losses.
For those users who tend to buy wealth management products, they should also carefully study the investment target, risk-return characteristics and related fees of the product before purchasing to ensure that it meets the personal risk tolerance.
It is recommended to choose products from financial institutions with regulatory qualifications and good reputation to avoid excessive investment risks.
4. Continuous learning and consultation
You should also take time out to learn some financial knowledge, pay attention to market dynamics, and consult professionals to improve your financial literacy and risk awareness, and avoid capital loss due to lack of relevant knowledge.
In recent years, several abnormal behaviors on the part of banks have actually revealed a signal for us: banks have more and more deposits in their hands, while the demand for loans is declining and risks are rising.
In this case, it is better for depositors to deposit their money in large state-owned banks.
In addition, considering the impact of factors such as the slowdown in the property market and the growth rate of the real economy, it is expected that the deposit interest rate will usher in room for reduction this year, and everyone should be psychologically prepared.
Wan Ziwen said: Every word of the article was typed out by me, and I clicked "watching" to let me know that you are also "doing your best" for life.