Certificates of deposit sold out, Chunjiang plumbing?
The suspension of the issuance of two-year and three-year certificates of deposit by many banks means that the deposit interest rate will be lowered again in the future? This phenomenon is indeed alarming. While the reduction in deposit rates is well known, the trend of frequent announcements of interest rate cuts by banks is becoming more and more puzzling. China Merchants Bank, one of the largest banks in mainland China, has added to its doubts about the termination of the issuance of three-year and five-year certificates of deposit. Due to the threshold of 200,000 yuan, the relative interest rate of large-amount certificates of deposit is relatively high, but the number of long-term products is decreasing, and the interest rate is also on a downward trend.
What should be done for those who have idle funds but are not willing to take risks? Banks have to pay interest on deposits, and high interest rates, long-term deposits also mean higher costs. Perhaps banks are more inclined to promote short-term deposits and reduce the issuance of medium- and long-term deposits. For customers, they may only choose short-term deposits, and if the deposit interest rate falls, they can only passively accept it. In 2023, thousands of banks across the country will cut their deposit interest rates three times, with the highest interest rate falling from more than 3.5% to less than 2.75%. As of the first three months of 2024, deposit rates are still on a downward trend. Bankers pointed out that with the reduction of lending rates, net interest margins have narrowed, banks' operating costs have risen, and their revenues have decreased.
In this context, the public should perhaps pay attention to the asset-based policies launched by insurance companies. These products can still lock in 3% compound interest and provide lifetime protection. Perhaps this is a better option to keep your money and keep interest rates high. However, it is worth noting that insurers may also reduce the level of compound interest. Therefore, it may be a sensible arrangement for customers who want to keep their funds safe and receive high interest rates in the long term.
Netizen's view: "In the face of the continuous decline in deposit interest rates, insurance products may be a good choice. But I still hope that banks can provide more long-term, high-interest deposit products to give us more choice. ”