On the one hand, they have experienced hard days, so they know how to increase revenue and reduce expenditure. On the other hand, there are old people and young people. If there is not enough deposit, you will be caught off guard against emergencies, so deposits are a kind of gua

In the past, most of the middle-aged and elderly people were keen on deposits. On the one hand, they have experienced hard days, so they know how to increase revenue and reduce expenditure. On the other hand, there are old people and young people. If there is not enough deposit, you will be caught off guard against emergencies, so deposits are a kind of guarantee. Now, after experiencing the new crown epidemic, a large number of people have been unemployed and have been cut in their wages, and the development of various industries is in a sluggish manner. The risks of starting a business have increased, and many have gone bankrupt. At the same time, prices are rising and the pressure on living costs is increasing. Combining various factors, young people finally realized the importance of deposits. The problem of being too big has been corrected and no longer relies on advanced consumption. This is a good phenomenon.

The first choice for people’s deposits is naturally a bank, which is safe and reliable, and can obtain interest returns. Generally speaking, the more deposit amount, the longer the term you choose to deposit, the more interest you get.

However, the fixed interest rates of the four major banks are being adjusted, and the 5-year fixed deposit is even lower than that of 3 years. But even so, insiders recommend depositors to choose 5-year fixed deposits. What's going on?

Bank interest rate cut

In mid-April this year, banks adjusted the interest rate of large orders. The previous three-year and five-year large-denomination certificates of deposit interest rates were 3.5% and 6.7%, and it fell sharply after adjustment, with only 3% and 3.2%. After this adjustment, many banks lowered the regular fixed deposit rate , with a drop of 10 basis points. Relevant departments clearly require the benchmark interest rate of for three- and five-year fixed deposits to be 2.75%, but most banks raise this standard. In this case, the current interest rate cut is actually a floating interest rate within the bank.

According to relevant information, the five-year fixed deposit interest rate has been lowered to the benchmark interest rate, and it is only 2.75% after there is no room for upward. However, there is still room for interest rates for three-year fixed deposits to rise, and some banks have launched three-year fixed deposit interest rates ranging from about 3.1% to 3.2%. In this way, the interest rate for five-year fixed deposits is actually lower than that of three-year fixed deposits.

Why is it said that five-year fixed deposits are more desirable

Reasonable for depositors to choose activities with higher interest rates. The interest rate of five-year fixed deposits is lower than that of three years, so it is definitely more cost-effective to choose the latter. But now there is a strange phenomenon. There are still many depositors who choose to deposit five years, and some experts also recommend it for five years. The reason is very simple.

First of all, the three-year fixed deposit cycle is shorter than five years. Although the interest rate is higher at the moment, no one can guarantee that the deposit interest rate can still reach this level after the expiration. If interest rates are lowered after maturity, you will suffer a loss. However, due to the long cycle of five-year fixed deposits, although the annual interest rate is only about 2.75%, you can still enjoy this standard after three years. Perhaps after five years of maturity, the interest rate will be lower than 2.75%.

In order to prove this situation, some netizens shared real stories. More than a decade ago, some banks launched deposit activities with interest rates up to 6%. At that time, banks launched deposit activities with a deposit period of 20 years and an interest rate of 5.5%. At that time, many people did not choose the latter, but now the interest rate returns given by major banks are far less than 5.5%, and they cannot even reach half. If people with visionary choices at that time can still enjoy a 5.5% interest rate return, it is obviously a profit.

In order to confirm which five-year or three-year deposit activity is more cost-effective, some people have calculated that the latter is preferable. If you want to have a principal of 10,000 yuan, you can get a total of 1,375 yuan in interest within five years, which is 275 yuan a year. If it is a three-year period, it will be settled at a rate of 3.15%, and the total interest is 945 yuan, and the annual interest is 315 yuan.

The second method is to take out the principal and interest after the expiration, which can be turned into 10,945 yuan. If you still choose a three-year fixed term, as long as the interest rate is above 1.96%, you can get more than 215 yuan of interest every year. The total interest obtained after five years is the extra part compared to the five-year fixed deposit.The question is, after three years, will the three-year fixed deposit interest rates of major banks be below 1.96%? This possibility is relatively small, so the interest return for three-year fixed deposits is higher, so naturally we should choose a three-year fixed deposit.