If you plan to save money in a bank, it is best to deposit a large-denomination certificate of deposit if conditions permit, because the interest rate on a large-denomination certificate of deposit is higher. Among the large certificates of deposit, the ones with the highest inte

If you plan to go to the bank to save money, if possible, it is best to deposit large-denomination certificates of deposit , because the interest on large-denomination certificates of deposit is higher. Among the large certificates of deposit, the ones with the highest interest rates are those with a 5-year term. However, it is almost impossible to see 5-year large-denomination certificates of deposit. Do banks have 5-year large-denomination certificates of deposit?

Does the bank have a 5-year certificate of deposit?

Bank's large-denomination certificates of deposit are different from time deposits. You can't just deposit them if you want to. If a depositor wants to deposit a large-denomination certificate of deposit, it must first be issued by a bank, and large-denomination certificates of deposit issued by banks generally have a certain quota. If the quota is sold out, they cannot deposit.

Therefore, the reason why we rarely see large certificates of deposit with a five-year term is because few banks issue them. Of course, this does not mean that banks do not have 5-year certificates of deposit.

Some banks occasionally issue 5-year certificates of deposit. These banks are generally smaller local banks that most people don’t have access to and have never even heard of their names. There are some questions about them. Little is known about the issuance of 5-year certificates of deposit.

So, why do so few banks issue 5-year certificates of deposit? In the final analysis, it is still a question of cost.

Because normally, if a bank wants to issue a five-year large-denomination certificate of deposit, it needs to give a higher interest rate than a large-denomination certificate of deposit with other maturities. Otherwise, it will not be issued, mainly because no one is willing to buy it.

However, as the interest rate difference between deposits and loans continues to be compressed, banks are unwilling to accept deposits at too high interest rates. After all, banks are not charitable institutions and they are certainly unwilling to engage in loss-making transactions.

Therefore, whether banks issue 5-year certificates of deposit at a lower interest rate or a higher interest rate, they are in an awkward situation. In this case, there is no need to issue them.

Only smaller banks, because of tight funds, have to issue 5-year certificates of deposit at higher interest rates. Therefore, it is normal that the number of 5-year certificates of deposit is still scarce.

So, judging from the existing 5-year certificates of deposit, are they any good?

First of all, from the perspective of interest, 5-year large-denomination certificates of deposit from some banks are still worth saving. The maximum interest rate for 5-year certificates of deposit issued by some banks can reach 4.05%. This interest rate has reached the ceiling among deposit products.

Moreover, the deposit interest rate may drop further in the future. At this time, if you save a 5-year large-denomination certificate of deposit, you can lock in the interest for the next 5 years. Even if the interest rate does drop within these 5 years, it will not matter to you. Impact, you can still get higher interest rates.

However, the interest rates of some banks on 5-year large-denomination certificates of deposit are not very high, and are not even as high as those of some banks on 3-year large-denomination certificates of deposit. Therefore, not all banks’ 5-year certificates of deposit are worth saving.

Secondly, saving a 5-year large certificate of deposit requires sacrificing a certain amount of liquidity, which needs to be considered clearly. Because large-denomination certificates of deposit are similar to time deposits, if you want to save, it is best to stick to the full term, otherwise you will only get a little current interest, then it is better not to save.

Therefore, if you can guarantee that the money can be saved for more than 5 years, it is naturally a good choice to save a 5-year large-denomination certificate of deposit with a higher interest rate. If you can't guarantee it or know it won't last that long, it's obviously not worth saving.