The economic situation in 2024 is not ideal, and people who are working and laid-off are feeling that it is becoming more and more difficult to make money. Therefore, many people choose to keep their spare money in the bank instead of investing because they believe that investment is risky.
Today, let's explore whether you should choose a one-year or three-year deposit. Insiders have already given the answer, and you really can't choose the wrong one.
After all, we all know that the interest brought by one-year and three-year deposits is not the same, and the income is also very different. So, how do you make your choice?
First of all, the difference in interest rates determines the level of return for different deposit tenors. Although one-year deposits may be more suitable for short-term funding needs due to their lower interest rates, investors can earn limited interest over a one-year period, as one-year interest is much less than three-year tenors.
Whereas, three-year deposits have a higher interest rate but a longer period of time, which attracts a lot of people. Therefore, when choosing a deposit period, you should decide whether to choose a one-year or three-year tenor based on your personal situation.
Second, interest rate differentials can have a profound impact on the compounding calculation of funds. Choosing a three-year deposit means that interest will be compounded every year, and the interest will be added up to the interest accrued in each previous year. This allows investors to operate their funds more flexibly and achieve continuous growth in their funds.
Therefore, many people do not dare to invest or do business, but choose to deposit their money in the bank, after all, the bank is not only safe and reliable, but also allows the money to generate some interest.
In conclusion, investors should make appropriate choices based on factors such as their own capital needs, risk tolerance and deposit period. If you're looking for high interest rates, you should definitely opt for a three-year deposit, or a one-year term if you need short-term access to your funds.
What would you do with the money you have now?