broke through 3% from to 4% . " China Banking and Insurance News " noticed that from June to October this year, the annual interest rates of some commercial banks' USD deposit products rose steadily.
However, a reporter from China Banking and Insurance News noticed that at present, US dollar deposit products with higher annual interest rates generally have a certain deposit limit for , and the deposit period is 12 months or more, which is not an ordinary fixed deposit .
For consumers with idle foreign exchange funds, whether to configure this product, also needs to consider the Fed's policy trend, foreign exchange cost, and other issues.
annual interest rate exceeds 4%
Around the National Day, many banks' USD deposit products have increased their annualized yields again.
On October 9, the new Xinhuitian personal dollar deposit pricing released by Nanjing Bank showed that the annual interest rate of this product with a deposit of more than 10,000 US dollars and one-year period was adjusted to 4.2%. In July, the annual interest rate of this product that has been stored in one year is still 3% .
screenshot from Nanjing Bank official website
Hangzhou Bank The annual interest rate of the US dollar "Baiying Deposit" product issued in October is also exceeds 4% . Currently, the annual interest rate of the product with a deposit of US$100 to US$2,000 and a 13-month product with an annual interest rate of 4.15% , and the annual interest rate of the product with a deposit of US$2,000 and a 13-month product with an annual interest rate of 4.20% . The annual interest rate of this product was still below 4% when it was released in September.
Chengdu Bank also adjusted its US dollar deposit interest rate on October 8. According to the customer service staff of Chengdu Bank, the bank currently starts at US$10, and the interest rates of fixed deposits for 6 months, 1 year, 13 months, 18 months and 2 years are fixed deposits of , respectively. Before the adjustment, the interest rates for deposits for the above term were 1.6%, 2.8%, 2.8%, 2.8%, and 2.9% , respectively.
In addition, a reporter from China Banking and Insurance News noticed that foreign banks such as HSBC Bank , UOB , also launched preferential interest rate products in October, among which UOB 1-year and 50,000 US dollars deposited products reached 4.2% .
Before the National Day holiday, Ms. Li from Beijing received a call from a financial manager of a joint-stock bank and learned that "the interest rate of the dollar deposit product has risen again ." After the
section, the financial manager recommended her a US dollar financial product with a risk level R1 investment in domestic US dollar deposit products. "This type of product is more suitable for customers with ready-made US dollar accounts. In the past, the US dollar financial rate has always been relatively low, and now it is an opportunity for financial management. However, it is not suitable for to speculate through this type of product. "The above-mentioned financial manager told Ms. Li.
USD financial management is more suitable for mature investors
Regarding the reasons for the recent rise in USD deposit interest rates, experts generally stated that under the influence of the Federal Reserve's continuous hikes of interest rates, global USD interest rates continue to rise, and the yield on related assets has also risen accordingly.
On September 21, local time in the United States, the Federal Reserve completed its fifth rate hike this year, raising the target range of the federal funds rate from 2.25% to 2.5% to between 3% and 3.25%. So far, the Federal Reserve has raised interest rates by 300 basis points this year. Recently, the yield on US 2-year and 10-year Treasury bonds once exceeded 4% , the highest level since August 2007.
However, when investors plan to deposit US dollar deposits and US dollar financial management, they also need to pay attention to the possible risks . Liu Yinping, an analyst at the Institute of Digital Technology of
Rong360, pointed out to the China Banking and Insurance News that investors should pay attention to two points when purchasing US dollar deposit products:
First, The Federal Reserve's interest rate hike and interest rate cuts. The Federal Reserve raises interest rates, US dollar deposit interest rates follow the rise, the Federal Reserve cuts interest rates, and US dollar deposit interest rates follow the fall, but the US dollar deposits already held are not affected by the Federal Reserve's interest rate hikes and interest rates.
2. The dollar-to- RMB exchange rate and the loss of handling fees. If the US dollar appreciates against the RMB, it is more cost-effective to buy US dollar deposits, and exchange US dollars and RMB will lose a certain handling fee.
China Merchants Securities chief banking analyst Liao Zhiming once said in an interview with China Banking and Insurance News that investment in wealth management products linked to the US dollar should also pay attention to exchange rate risk .
Liao Zhiming said that overall, in the interest rate hike cycle , the US dollar is prone to appreciate, but does not rule out the risk of exchange rate depreciation in the later stage . At present, the number of foreign currency wealth management products launched by bank wealth management subsidiaries and fund companies is relatively small, with a limited range of choices, and is a "niche" product. Products like are more suitable for financial consumers who have a strong sense of financial management and have a certain understanding of foreign exchange or research.
This article is from China Banking and Insurance News
