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Why is the deposit still smart or not?

author:Illustrated Finance
Why is the deposit still smart or not?

Recently, a number of banks have issued announcements intensively, and smart notice deposits have been removed from the shelves.

Why is the deposit still smart or not?

First of all, we need to know

What is a call deposit.

Why is the deposit still smart or not?

To clarify this concept,

Let's start at the beginning.

There are two types of bank deposits, depending on the target of deposit.

Why is the deposit still smart or not?

These two types of deposits can be further classified.

Among them, personal deposits mainly include:

Why is the deposit still smart or not?

The unit deposits mainly include:

Why is the deposit still smart or not?

From this we find that

For both individuals and organizations, there are call deposits

Why is the deposit still smart or not?

We always agree on a deposit term, such as 3 years or 5 years.

However, this is not the case with call deposits, which usually do not stipulate the term of the deposit.

Why is the deposit still smart or not?
Why is the deposit still smart or not?

However, it is necessary to notify the bank a certain amount of time in advance when withdrawing.

Agree on the time and amount of withdrawal.

Wait until the appointed time, and then go to the bank to withdraw it.

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Why is the deposit still smart or not?

Call deposits give the bank a certain amount of time to arrange funds,

Ensure appropriate solvency and improve the effect of capital utilization.

Why is the deposit still smart or not?

At the same time, the interest rate of call deposits is generally higher than that of demand deposits, so depositors can obtain greater returns on short-term idle funds and increase the enthusiasm of deposits.

Why is the deposit still smart or not?

According to the length of the depositor's advance notice,

The bank offers two varieties, 1-day and 7-day call deposits

Why is the deposit still smart or not?

However, there are certain deposit threshold requirements for call deposits, which generally require a minimum minimum deposit amount of 50,000 yuan for individuals and 500,000 yuan for units.

Why is the deposit still smart or not?

So what about the "smart notice deposits" that many banks announced to be removed from the shelves this time?

Why is the deposit still smart or not?

For general call deposits, the bank will settle the interest only when the customer withdraws the loan after 1 or 7 days' notice in accordance with the regulations.

Why is the deposit still smart or not?

It can be seen that the interest will not be settled on the call deposit before it is withdrawn, which is a simple interest product.

Why is the deposit still smart or not?

This is not the case with Smart Notice Deposit.

For example, the 7-day smart notice deposit will settle interest every 7 days, and then automatically roll over, and then settle the interest again after 7 days, and so on.

Why is the deposit still smart or not?

At this time, the interest generated by each 7-day interest settlement will be credited to the principal in the next period to resettle the interest.

Why is the deposit still smart or not?

The customer does not need to do anything during this process.

Why is the deposit still smart or not?

Therefore, the interest rate of the so-called smart call deposit will be higher than that of the general call deposit.

Why is the deposit still smart or not?

Under normal circumstances, a call deposit is an indefinite deposit, but the smart call deposit automatically accrues interest without prior notice from the customer, turning it into a 1-day or 7-day fixed deposit.

I can't help but wonder if there is a suspicion of high-interest savings in disguise?

Why is the deposit still smart or not?

While this automatic rollover feature provides convenience and higher interest rates to customers, it increases the bank's capital cost and operational risk.

In the context of falling interest rates, the pressure on bank interest margins is relatively large, so many banks have taken the initiative to remove "smart notice deposits".

Why is the deposit still smart or not?

All right

That's all for today.

Why is the deposit still smart or not?
Why is the deposit still smart or not?
Why is the deposit still smart or not?

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Why is the deposit still smart or not?