Here's the good news:
Recently, the Ministry of Finance of the People's Republic of China issued the Notice on Announcing the Relevant Arrangements for the Issuance of General Treasury Bonds and Ultra-long-term Special Treasury Bonds in 2024 (hereinafter referred to as the "Notice"):
In addition to the general government bonds that we often buy, there are also ultra-long-term special government bonds.
It is divided into 20-year, 30-year and 50-year varieties, all of which pay interest on a semi-annual basis.
The first of these is a 30-year ultra-long-term special government bond, which will be launched on Friday, May 17.
We may have more contact with government bonds, so what is the difference between ultra-long-term special government bonds?
Can ordinary people buy it? Compared with savings insurance, which is more advantageous?
If you have a heartbeat, let's take a look.
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01
What are ultra-long-term special government bonds?
Ultra-long-term special treasury bonds contain three key words: ultra-long-term, special, and treasury bonds.
Let's talk about [national debt] first,
Refers to the bonds issued by the central government to raise financial funds.
To put it simply, the state borrows money from our people, and after maturity, the principal and interest are repaid.
However, according to what we mentioned at the beginning, the ultra-long-term special treasury bonds are paid once every six months.
This is not the same as ordinary government bonds.
[Special] means that the treasury bonds are issued for specific targets, and the funds are earmarked and not included in the deficit.
For example, in the case of ultra-long-term special treasury bonds issued this time, the government clearly stated in its work report:
-- It is to systematically solve the problem of funding for the construction of some major projects in the process of building a strong country and national rejuvenation, and to use it specifically for the implementation of major national strategies and security capacity building in key areas.
"Ultra-long-term" means that the bond issuance period > 10 years.
Like the deadline for this release, we also mentioned at the beginning:
They are all 20-, 30-, and 50-year-old varieties.
In fact, the mainland has also issued several special treasury bonds before:
About 5~10 years is relatively concentrated, and the longest is 30 years.
Strictly speaking, the 30-year special government bonds issued in 1998 and the 15-year special government bonds issued in 2007 may be considered ultra-long-term special government bonds.
Compared with the previous special treasury bonds, the ultra-long-term special treasury bonds have the following characteristics:
First, the issuance period is particularly long, such as 50-year varieties;
Second, it is issued continuously and the issuance scale is particularly large.
It is expected that 1 trillion yuan will be issued first, and the specific issuance plan is as follows:
Third, the relevance of the issuance purpose to the economy and high-quality development is particularly high.
So who can buy it?
Ultra-long-term special treasury bonds are book-entry treasury bonds, which can be bought by individuals and institutions.
It can be purchased over the counter at banks, online platforms and securities markets, and can also be circulated and transferred.
02
Compared with savings insurance, how to choose better?
This ultra-long-term special treasury bond, there is another point that everyone is very concerned about.
That is, what is the yield?
The documents of the current announcement have not been disclosed for the time being, but we can refer to the past data to estimate.
For example, according to the central bank's data on May 10:
In the first quarter of 2024, the yield on 10-year Treasury bonds fell to 2.29% from 2.56% at the beginning of the year;
The yield on the 30-year Treasury note fell to 2.46% from 2.84% at the start of the year.
Judging from the current investment market, the general environment interest rate continues to decline.
The demand for low-risk assets is still very strong, and there is not much pressure on the issuance of long-term treasury bonds.
Therefore, the yield of long-term Treasury bonds is also continuing to fall, and it is likely that the 30-year Treasury bond will also be around 2.4% this time.
As an insurance blogger, we have also been consulted by clients who:
How to choose a better long-term special treasury bond than savings insurance (such as increased whole life insurance, annuity insurance, etc.)?
I have summarized a table from the minimum investment amount, yield and other contents that everyone is more concerned about:
Overall, both products are very safe,
Ultra-long-term special treasury bonds are backed by the state, and the default risk of treasury bonds is almost zero;
Savings insurance is supervised and managed by the Insurance Law and the State Financial Supervision and Administration Bureau, and the security is also very high.
However, the threshold for ultra-long-term special treasury bonds is lower, and there are no health notices, age and other requirements.
As long as you fight fast, you can buy it if you can grab it.
Savings insurance generally has an age requirement, health advice is very relaxed, and some products do not need health notice.
In terms of the use of funds, savings insurance will be more flexible and support partial policy reduction, surrender and other operations.
Some products can also be attached to a variety of fund management methods such as universal accounts and trusts.
Ultra-long-term special treasury bonds are theoretically paid with interest every year, and the principal is received at maturity.
If you really need money urgently, you can sell it to others.
As for the income, I will take a certain increase in life as an example and briefly compare it:
About 10 years before the policy, it is the period of growth of the current price of the increased life.
Therefore, during this period, the current price of the account is relatively low.
Ultra-long-term special government bonds, on the other hand, are very stable and will yield higher.
After 10 years of the policy, the increased life began to exert force, and gradually caught up with the income of ultra-long-term special treasury bonds.
In the 20th year of the policy, the yield of this increased life has reached 2.546%, and the longer it is held, the higher the return.
After the expiration of 30 years, the principal is deducted,
The accumulated interest on ultra-long-term special treasury bonds is 720,000 yuan, and the increased life is more than 992,000 yuan.
03
Daddy concluded
In any case, ultra-long-term special treasury bonds and savings insurance,
They are all good choices for low-risk investment at present.
Which one is better? It is recommended to follow the actual situation of the person:
If you have a large amount of money on hand and don't know how to take care of it, you can buy ultra-long-term special treasury bonds and savings insurance.
If you don't have a lot of money on hand, you plan to save for a long time, or you want to make retirement plans,
If you value the flexibility of using funds, you can consider savings insurance.
Are you planning to rush to a wave of ultra-long-term special government bonds? Or are you ready to buy savings insurance?
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