What are the advantages and disadvantages of bank wealth management products and reverse repurchase of government bonds?

Advantages of reverse repurchase of national debt:

1. has good security and low risk, and is supervised by the stock exchange.

2. High short-term yield.

3. The service fee is low.

Disadvantages of reverse repurchase of government bonds: low long-term income, basically the income of time deposits.

Advantages of bank financing: 1, diversified products to meet the needs of different investors. 2. Strict product audit and bank credit endorsement. 3, thoughtful service, provide advice to the corresponding financial manager.

Disadvantages of bank financing: 1, high-yield wealth management products also have high risks. 2. Products with poor liquidity and closed period cannot be redeemed in advance. 3, the starting point of purchase is high, and many products are above 50,000 yuan.

The biggest advantage of reverse repurchase of investment bonds is that interest begins to accrue from the moment of purchase, and there is no vacant period of funds, so you can reinvest immediately after maturity, which greatly improves the efficiency of capital use. It is more convenient to use the mouse on the computer to buy government bonds for reverse repurchase.

Bond reverse repurchase has three advantages.

First, there is no risk. The financing party must declare a sufficient number of pledge bonds before repurchase and securities lending, and transfer them to the pledge warehouse, and may not sell them.

Second, the output is high. The yield of bond reverse repurchase is determined by the market. In most cases, it is not only higher than bank demand deposits, but also higher than the yield of risk-free wealth management products of banks in the same period.

Third, it is convenient and fast. It is convenient and quick to entrust directly through the network and telephone. In addition, there are as many as 9 reverse repurchase varieties of bonds with different maturities traded on the exchange, and at least 3 varieties are active in trading, with more choices.

Investors who have bought short-term wealth management products know that because wealth management products are divided into sale period, value date, maturity date, liquidation date and payment date, the actual interest-bearing time is only from the value date to the maturity date. From the offering period to the value date, and from the maturity date to the payment date, only the current interest will be paid. Some ultra-short-term wealth management products, the actual income will be much lower than advertised. For example, for a 3-day wealth management product, the average period from the collection period to the redemption date often exceeds 6 days. If the annualized rate of return is 6%, the actual rate of return is only half of the original.

I hope I can help you.