The old saying "water can carry and capsize boats" not only describes the two sides of water, but also accurately reflects the dual role of financial products in people's lives. With the advent of 2024, many banks have made significant adjustments to their call deposit products, a change that is directly related to the pocketbooks of the general public. Prior to this, in May 2023, large state-owned banks and joint-stock banks had begun to remove smart notice deposit products or lower the upper limit of interest rate increases, which seemed to pave the way for this broader adjustment. Now, how will this change affect the economic arrangements of depositors and the way banks operate? Isn't this an opportunity to rethink the eternal theme of "deposit security and yield"?
In May 2024, a revolution is underway about where millions of depositors' deposits go. A number of banks have issued announcements announcing the cancellation of the automatic rollover function of call deposit products, which has undoubtedly brought a lot of shock to many people's financial planning. Let's take a look at Bohai Bank first, the bank announced on April 30 that from May 1, the personal call deposit product will no longer be automatically rolled, but changed to a "call deposit +" product. This means that depositors who fail to pay attention to this change in time may unknowingly affect their own liquidity.
Dalian Rural Commercial Bank's adjustment is more specific, and since May 14, its smart notice deposit product has eliminated the automatic rollover function. Depositors need to make an appointment at least one or seven days before the withdrawal date, which undoubtedly increases the complexity of managing personal funds, and depositors need to be more mindful of their deposit status to avoid inadvertently not withdrawing funds on time.
Subsequently, China Guangfa Bank announced in an announcement issued on April 15 that it planned to cancel the automatic renewal function of the corporate notice deposit business in early May. This affects not only individual savers, but also corporate customers. The non-rollover treatment of funds may be returned to the customer's contracted current account, which undoubtedly increases the complexity of financial operations for enterprises that need to frequently use large amounts of funds.
The Fujian Provincial Rural Credit Cooperatives Union announced on March 1 that the "Fulibao" smart notice deposit product will be terminated on March 21. Subsequently, Fuzhou Rural Commercial Bank, Lianjiang Rural Commercial Bank, Sanming Rural Commercial Bank and many other rural commercial banks and village banks followed up one after another. This series of terminations not only makes depositors feel the changes in financial products and services, but also reflects the adjustment of the strategy of rural commercial banks to adapt to changes in the market and regulatory environment.
Behind these changes, banks have higher requirements for liquidity management and strengthened risk control. While this is an optimization of the bank's risk management strategy, for the average depositor, it means that they have to spend more time and effort on managing their own deposits. This makes one wonder if this balance of interests between banks and depositors can find a win-win solution.
Despite the challenges posed by the change, it has also prompted savers to pay more attention to their financial security and the efficient use of their funds. In a sense, it could also be an opportunity to educate savers on how to manage their money more scientifically. After all, knowing and mastering every detail of your finances is an essential ability for those who pursue financial freedom.
"Those who know are not confused, those who are benevolent are not worried, and those who are brave are not afraid. This sentence is especially relevant in the face of today's deposit revolution. Although the bank's policy adjustment has brought a lot of inconvenience and challenges to depositors, it is also a sign that the financial environment is maturing. Savers need to learn from these changes how to manage their money, how to find opportunities in the midst of change, and how to adapt to such an ever-changing financial environment.
Although the original intention of this series of adjustments of the bank is to control risks and manage liquidity, it also reminds all depositors that the learning of financial knowledge and the improvement of financial management ability are topics that everyone cannot ignore. For banks, they should also think about how to better serve customers while ensuring business operation efficiency and risk control, so as to make financial services more humane and truly achieve the unity of knowledge and action.
In the future, we can expect that with the advancement of technology and the improvement of regulation, there will be better mutual trust and cooperation between banks and depositors. Let's wait and see how this reform of the deposit policy can nurture new opportunities in the midst of challenges and achieve a victorious feast of inclusive finance.
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