Over the years, the people in China have really become more and more fond of saving money:
Data shows that before 2018, the new resident deposits were about 4-5 trillion yuan every year, but since the outbreak of the epidemic, the scale of resident deposits has skyrocketed.
In 2020, 11 trillion new deposits were added, 18 trillion yuan in 2022, and 17 trillion yuan in 2023, although they will fall. In general, during the three-year epidemic period, the scale of new deposits of residents is equivalent to the total amount of new deposits in the past ten years.
The mainland's savings rate has exceeded 40% in the first two years, far higher than the global average of 29%.
From the perspective of age distribution, in general, the main force of domestic deposits is mainly middle-aged and elderly. This is also because older people have more limited spending than younger people, and they are used to saving, so most older people can always save that amount of money every month.
Moreover, in order to get more interest income, depositors will choose the automatic rollover method when depositing money, so as to lock in the interest and ensure a higher interest on deposits.
However, with the downturn in the general environment in the past two years, banks have changed more and more, on the one hand, bank deposit rates have continued to decline; On the other hand, some of the bank's product features are also constantly changing. For example, recently, a number of banks have issued announcements stating that they will cancel the automatic rollover function of their call deposit products. It also indicates that it may be increasingly difficult for savers to achieve higher interest yields in this way. Let's take a look:
.01
Benefits of "Auto-Dump".
In general, many depositors will choose "automatic rollover", and this choice is mainly based on several reasons:
1. No need to run again, save time. If the depositor chooses "automatic rollover" when depositing money, he does not need to go to the bank to renew the deposit after the maturity of the fixed deposit.
2. Avoid the reduction of interest income. If the depositor handles the "automatic rollover", after the deposit period expires, the depositor's deposit mode will also calculate the interest according to the original agreed interest rate, and if the bank interest rate falls at this time, the interest income can be avoided from decreasing.
If you choose to "take out and re-deposit", after the expiration of the deposit period, the future interest can only be calculated according to the current account, which is obviously lower than the interest calculated at the original interest rate after the "automatic rollover".
Especially in recent years, under the general trend of continuous decline in deposit interest rates, it is obvious that the advantages of "automatic rollover" are greater. After all, even if the deposit interest rate has been falling, this method of survival can guarantee the original interest income, and the depositor does not have to go to the bank again when the deposit period expires.
However, as bank spreads become more and more stressful, it is clear that this opportunity to increase interest income is becoming less and less.
.02
A number of banks have removed the automatic rollover function of their call deposit products
For example, on April 30, Bohai Bank announced that the automatic rollover of personal call deposit products will be automatically terminated from May 1, 2024, and the stock of automatic rollover of personal call deposit products will be changed to "call deposit +" products after termination.
Dalian Rural Commercial Bank announced that from May 14, 2024, Dalian Rural Commercial Bank's smart notice deposit product will cancel the automatic rollover function, and customers need to make an appointment 1 or 7 days before the withdrawal date.
China Guangfa Bank will also offline the automatic rollover service of the call deposit business of the unit in early May (including the related products of the Win in Yitian series), and the existing funds will be adjusted to the non-rollover service mode according to the specific product and service rules or returned to the customer's contracted current account...
In fact, not only these small and medium-sized banks, as early as May last year, many banks, including large state-owned banks and joint-stock banks, have removed smart call deposit products or lowered the upper limit of call deposit interest rates.
After reading it for so long, some people may not understand what a call deposit is.
In fact, call deposit is also a type of demand deposit, but the interest rate is higher than that of demand deposit, which refers to the deposit business in which the customer does not agree on the deposit period, and needs to notify the bank in advance when withdrawing, and agree on the withdrawal date and amount before it can be withdrawn. Regardless of the actual deposit period, individual call deposits are divided into two types: 1-day call deposit and 7-day call deposit according to the length of the depositor's advance notice period.
The reason why banks have removed the automatic rollover function of call deposit products is actually to reduce costs. After all, the interest rate of smart notice deposit products is generally higher than that of ordinary deposit products, which is equivalent to increasing the cost of saving for banks.
However, in recent years, with the downturn of the real estate market, buyers have become more and more rational, and even the wait-and-see sentiment has become stronger, and people have stopped buying houses, resulting in banks having more deposits and less loans, and the pressure on interest margins has intensified.
In other words, by adjusting the "smart notice deposit" product, banks will also help to continuously reduce the cost of liabilities of banks and alleviate the downward pressure on interest margins.