As we all know, Chinese residents are notorious for saving money, but living in an era where prices are rising year by year also makes everyone understand that if money does not maintain and increase in value, it will only depreciate more and more. If you want to outperform inflation and , you must put your spare money into investment and financial management projects and strive to obtain more passive income.
Some people want to know, if you have idle funds in your hands, is it better to deposit the spare money in the bank or buy gold? Which one is better for maintaining and increasing value? In fact, whether it is depositing money in the bank or buying gold, it is a relatively safe way to manage money. But if you really want to compare, there are differences, so don’t make the wrong choice and read on!
1. Security
In terms of security, both have their own advantages, but in general, bank deposits are safer than gold. Because bank deposits are principal-guaranteed and interest-guaranteed products, not only the principal is protected by deposit insurance regulations , but also the corresponding interest can be earned.
If you choose to buy gold, there is no stable interest. Its depreciation or appreciation is determined by the rise and fall of gold prices. There is great uncertainty, and the principal is likely to be lost. Therefore, most people feel that it is safer to deposit their money in the bank.
However, depositing money in the bank is equivalent to lending money to the bank. If the bank goes bankrupt, closes down, or has difficulty withdrawing cash during the deposit period, then the deposit will most likely not be returned, although the deposit is covered by deposit insurance. The regulations guarantee that full compensation can be paid, but the upper limit is 500,000 yuan, and the excess amount is not guaranteed.
There is no such concern when buying gold. After all, gold is hard currency and can be cashed out in any country, so there is no need to worry about the value returning to zero. If you think about it from this perspective, buying gold is safer than depositing it in the bank.
2. Liquidity
In bank savings, the liquidity of demand deposits is very high, and they can be accessed and withdrawn at any time; while time deposits and large-denomination certificates of deposit need to be held within the agreed period before they can be obtained accordingly. Interest rates are less liquid than demand deposits. However, you can also withdraw it in advance, but the interest will be calculated according to the current interest rate.
When it comes to buying gold, although the environment is hard currency, there are not many channels for gold transactions. Usually, it needs to be cashed out before it can be used. You must know that there are many rules for cashing out in the environment, and it cannot be cashed out anytime and anywhere. Therefore, in comparison, the liquidity of bank deposits is more flexible.
3. Yield
The deposit interest rate of bank deposit products is relatively fixed and stable, but the yield is relatively low, so the possibility of maintaining the value of funds through the bank is relatively small. Gold has always been recognized as a store of value and a safe haven, but gold's returns mainly rely on price fluctuations, which is extremely unstable. If you want to preserve its value, you need to hold it for a long time.
4. Asset Appreciation
Whether idle funds are managed through gold or deposited in banks, each has its own merits. However, it is obviously difficult to outperform inflation and increase the value of funds, and only invest in one of them. It usually concentrates risks and is not conducive to the accumulation of wealth.
Therefore, funds should be allocated reasonably. Most of the funds should be deposited in the bank to obtain stable interest, and part of the funds should be used to buy gold, or manage funds in accordance with the general trend. For example, our country now pays more attention to stabilizing foreign trade and foreign investment to increase the speed of economic growth, and has successively launched various measures to promote high-quality development of foreign trade.
Under the concept of common prosperity, some foreign trade economic platforms have emerged. Based on the physical transaction and consignment model, the Chinese people can share the dividends. The annual profit of 12% is 30 days. On the premise that the principal is guaranteed, a small amount of allocation can be realized. Steady value-added.
In short, if you want to increase your wealth, you should allocate funds appropriately, and then invest the funds in different financial management projects according to personal needs, rather than just choosing one. Today’s content is shared here. If you have any questions, please leave a message in the comment area.
