Certificate of deposit is a deposit, not a wealth management product. It is a large deposit certificate issued by banking deposit financial institutions for individuals, non-financial industries and government organizations. There is a certain term, generally divided into 1 month, 3 months, 6 months, 9 months, 1 year, 18 months, 2 years, 3 years and 5 years.
At the same time, certificates of deposit are protected by the Deposit Insurance Regulations, that is, investors who deposit certificates of deposit within 500,000 yuan in a single bank will pay 100% even if the bank goes bankrupt, but the bank's financial management is not protected, and its expected rate of return is related to the investment target, that is, when the target goes up, the investor's financial management income will increase, while when the target goes down, it will decrease, resulting in losses.
Since certificates of deposit, like time deposits, have lower risk and fixed interest, why not buy certificates of deposit?
1, from the perspective of flexibility and liquidity.
Certificates of deposit have a certain term, generally divided into 1 month, 3 months, 6 months, 9 months, 1 year, 18 months, 2 years, 3 years and 5 years. Compared with demand deposits, some open-ended wealth management products have poor flexibility and liquidity, and are not suitable for short-term idle funds.
2. From the perspective of income.
Compared with demand deposits, certificates of deposit have higher income, but the income is lower than that of bank wealth management products with the same term. For users who pursue high returns, it is better to buy wealth management products with the same term directly. At the same time, if investors withdraw certificates of deposit in advance and calculate the income according to the bank's current interest rate, investors will lose a lot of interest income.
For example, for a three-year certificate of deposit deposited by an investor in a bank, the interest rate is 3.5%, the deposit is 200,000 yuan, and the interest at maturity is 200,000× 3.5 %× 3 = 211,000 yuan. If the user withdraws in advance two years later, the bank will calculate the interest according to the deposit interest rate of 0.3%, and the investor can only get the interest = 200,000× 0.
3. Start with the threshold.
The minimum deposit amount of a certificate of deposit is 200,000 yuan, and even some banks can deposit it at 300,000 yuan. This high threshold will shut many investors out.