Advantages and disadvantages of time deposits

The lowest interest rate for fixed-term savings, currently only 0.72%, so it is not suitable for long-term investment of large sums of money.

1, demand savings:

Advantages and disadvantages:

No fixed deposit period, can be accessed at any time, access to the amount of unlimited, but the interest rate is the lowest, is not suitable for large amounts of money as a long-term investment.

Applicable to:

Regular living expenses or general expenses, such as: payment of utility bills, telephone bills and other incidental expenses

Financial Advice:

The interest rate of current savings is the lowest, and is currently only 0.72%, so it is not suitable for long-term investment of large sums of money. Savers are advised to deposit their fixed monthly income (e.g. salary) into a demand passbook and can pay utility bills, telephone bills and other incidental expenses in the form of withholding. And they should check it regularly, and once they find a large balance in their current account, they should withdraw it at any time and convert it to a time deposit.

2, whole deposit and withdrawal

Generally 50 yuan deposit, deposit period of three months, half a year, one year, two years, three years, five years, the principal of a one-time deposit, issued by the savings institution deposit slip (folding), the maturity of the deposit slip (folding) to withdraw the principal and interest, the deposit period according to the same level of the deposit of the regular rate of interest to the end of the period of withdrawal, over the period of time part of the withdrawal of the interest rate according to the published interest rate of the current period. According to the wishes of the depositors, the time deposits can also be transferred to the maturity agreement or automatic transfer of deposits, the deposit maturity transfer, according to the transfer date of the interest rate announced on the board.

Interest rate:

Three months 1.71%

Six months 2.07%

One year 2.25

Two years 2.7%

Three years 3.24%

Five years 3.6%

Pros and cons:

Higher interest rate, but subject to time constraints, and if withdrawn early. interest loss is greater.

Applicable to:

Funds that you know you will use in advance or funds that will not be used for a long time.

Financial advice:

1), in the whole deposit and withdrawal at the same time, depositors may wish to split large sums of money, so that not only the interest will not be lost, and in case there is a need to withdraw in advance or emergency situation, will not be "one hair affects the whole body", to avoid loss of interest.

2), many depositors tend to save money after the expiration of the due date to forget to withdraw, the result of the overdue interest is only calculated in accordance with the current period, if combined with the automatic transfer of deposits, after the expiration of the due date can be automatically transferred to the deposit, even if the date of forgetting not to worry about it.

3), the large amount of long-term idle funds should be considered large amount of time deposits and large amount of transferable time deposits.

4), when choosing the term of fixed-term savings, you should choose the number of years you want to save directly into the deposit, so that the highest interest rate. For example, if you want to save for 5 years, you should choose to deposit your fixed-term savings directly for 5 years, which has the highest return. If you are sure that you will not use the funds for 7 years, but the bank does not have a fixed-term savings for this period of time to choose, in this case, choose a fixed-term savings with a wider gap between the two years of deposit, the return will be relatively high. In other words, if you want to save a 7-year fixed-term savings, choose one 5-year term and two 1-year term fixed deposits, than choose two 3-year term and a 1-year term fixed deposits return is greater.

3, zero deposit and withdrawal

Fixed monthly deposits, generally starting at 5 yuan, the deposit period is divided into one year, three years, five years, the amount of deposits by the depositor to determine their own, once a month, if there is a leakage in the middle of the deposit, should be made up in the next month, did not make up for those who are due to withdraw the amount of money deposited and the actual period of time calculated according to the interest.

Interest rate:

One year 1.71%

Three years 2.07%

Five years 2.25%

Advantages and disadvantages:

The burden of depositing is smaller; the interest rate is higher, and it can gather funds in the usual way, but it is also restricted by the time limitations, and it is more troublesome to deposit every month.

Applicable to:

Applicable to salary earners or "moonlighters", who can gradually and semi-mandatorily accumulate some funds for their future expenses.

Financial advice:

This savings once the agreed deposit amount, it must be deposited on time every month, if the middle of the special reasons for omission, then the next month must make up for, if there is no make-up deposits, then the contract will be treated as a breach of contract, the maturity of the withdrawal on the default of the principal part of the amount deposited before the actual amount of deposit and the actual period of time to calculate the interest; the default of the principal part of the deposit after the actual period of time and the interest rate calculated on the demand period. After the default, the principal portion of the deposit will be calculated according to the actual deposit period and the call rate.

4. Deposit of principal and interest

The principal is deposited at once, generally starting at 5,000 yuan, and the deposit period is divided into one year, three years and five years, and deposit certificates are issued by the savings institution, and the principal is withdrawn at once at maturity, and the interest is withdrawn by installments with the certificate, and the interest is withdrawn in a month or in several months, which is determined by the negotiation between the savings and the savings institution. If the interest is not withdrawn by the interest withdrawal date, it can be withdrawn at any time in the future. If the depositor needs to withdraw the principal early, this is subject to the provisions of the early withdrawal of time deposits to calculate the interest within the deposit period, and deduct back the overpayment of interest.

Interest rate:

One year 1.71%

Three years 2.07%

Five years 2.25%

Advantages and disadvantages:

Principal is subject to time constraints, and interest can be withdrawn in installments.

Applicable to:

Applicable to the spending of care recipients. For example: the fixed expenditure of retired persons to deposit the capital to take interest is a practical kind of storage, especially suitable for the elderly to deposit the pension, for children to deposit the school expenses, it deposits the method is to agree on the period of deposit, the whole deposit, and then withdraw the interest in installments, and finally the maturity of a drawdown of the principal amount.

Financial advice:

For some large sums of money for a long time without, and not willing to invest in some risky products depositors, may wish to consider the use of depository + interest + zero deposit combination mode, on the one hand, to obtain a higher return, on the other hand, can be generated by the interest and then saved up to achieve the "interest" effect. "The effect. At present, the minimum starting point is 5,000 yuan, the deposit period is divided into one year, three years and five years in three grades. When opening an account, the whole deposit according to the agreed period (can be 1 month or a few months) to withdraw interest in installments, the maturity of the principal.

For the specific operation, the first funds in accordance with the model of the deposit of the one-time deposit in the bank, and then agreed with the bank a "monthly automatic transfer of interest" business, so that you do not have to go to the bank every month to get the interest and then transferred to the deposit, but also to the interest can be utilized again, to obtain a greater combination of gains.

5, whole deposit and withdrawal

Principal deposited at once, generally 1,000 yuan from the deposit, the deposit period of one year, three years, five years, issued by the savings institution deposit slip, with the deposit slip to withdraw the principal in installments, the withdrawal period of one month, three months, six months, from the depositor and the savings institution to determine the negotiation, the interest in the end of the period to be settled at the time of withdrawals.

Interest rate:

1.71% for one year

2.07% for three years

2.25% for five years

Advantages and disadvantages:

Interest rate is subject to time limitations, and the principal can be withdrawn in installments.

Applicable to:

For fixed expenses. Suitable for citizens who need money on a regular basis.

6, fixed and living

The principal is deposited at once, issued by the savings institution certificate of deposit, generally starting at 50 yuan, the certificate of deposit is divided into two kinds of bearer and bearer, bearer can be lost, bearer can not be lost, unlimited period of deposit.

Interest rate:

Period <three months 0.72%

3 months≦period <half a year 1.71*0.6%

half a year≦period <1 year 2.07*0.6%

period ≧1 year 2.25*0.6%

props and Cons:

Both the benefits and the convenience of a fixed period and a call period. The advantages and disadvantages are as follows. It is not necessary to agree on the deposit period when opening an account, and the bank will charge interest according to the actual deposit period. There is no time limit, and the interest rate is between regular and demand.

Suitable for:

The fixed deposit is ideal for depositors who do not have large sums of money to spend within three months, and who are not prepared to invest for a longer period of time.

Financial advice:

Fixed Deposit should be used for small amounts, after all, daily living expenses are basically calculable as they are similar from month to month. Ideal for savers who don't have large sums of money to spend within 3 months, and who are also not prepared to invest for the longer term. As long as the funds in the account more than 3 months, then you can enjoy the same grade whole deposit and withdrawal of 60% discount, or more cost-effective, but if you can be sure that the hands of the funds idle for more than 1 year, then it is still more appropriate to choose a fixed-term deposit.

7, notice deposits

Notice deposits refers to depositors in the deposit does not agree on the deposit period, withdrawals need to notify the bank in advance, agreed to withdraw the deposit date and amount of money can be withdrawn a deposit, generally 1 day notice deposits and 7 days notice deposits of two varieties. The first deposit amount is 50,000 yuan.

Interest rate:

One day 1.08%

Seven days 1.62%

Advantages and disadvantages:

Starting capital is relatively high, and the interest rate is relatively high.

Suitable for:

Temporary deposits that you cannot decide to invest in and want to maximize the interest earned on them.

Financial advice:

Since the notice deposit is deposited, the depositor is free to choose the type of notice deposit (one-day notice deposit or seven-day notice deposit), but the deposit period and interest rate are not specified on the deposit slip or certificate of deposit, and the financial institution accrues interest according to the corresponding interest rate level and the actual deposit period announced on the listing on the day of withdrawal, and the interest is paid as the principal is paid off. If we deposit a notice deposit before the interest rate rise, when we make a withdrawal after the interest rate rise, the deposit can enjoy the new interest rate after the increase. Therefore, we can make full use of this special provision of notice deposits to maximize the interest rate hike on deposits for which we cannot decide on our investment intention at the moment.

It is important to note that notice deposits will accrue interest at the demand deposit rate in the following cases:

1. If the actual deposit period is less than the notice period, interest will be accrued at the demand deposit rate; 2. If the deposit is withdrawn without prior notice, the withdrawn portion of the deposit will accrue interest at the demand deposit rate; 3. If the deposit has already gone through the notice procedure but is withdrawn in advance or withdrawn after the expiration of the notice period, the withdrawn portion of the deposit will accrue interest at the demand deposit rate; 4. If the withdrawal amount is less than or more than the agreed amount, the interest will be charged at the demand deposit rate for the less than or more than part; 5. If the withdrawal amount is less than the minimum withdrawal amount, the interest will be charged at the demand deposit rate.

8. Education Savings:

Education Savings is a zero deposit and withdrawal term savings deposit. The deposit period is divided into one year, three years and six years. The minimum starting amount is 50 yuan, the deposit amount is an integral multiple of 50 yuan, can be a one-time deposit, can also be divided into deposits or monthly deposits, the maximum aggregate principal limit of 20,000 yuan.

Interest rate:

One year 2.25% (exempted from interest income tax)

Three years 3.24% (exempted from interest income tax)

Six years 3.62% (exempted from interest income tax)

Pros and Cons:

Exempted from interest tax, preferential interest rate, which can increase the interest income of the depositors by about 20%, and the flexible period of time of deposit. Deposits are made in the form of zero deposits and receive the interest of whole deposits. However, its scope of application is relatively limited, the processing is too cumbersome and the maximum deposit limit is too low.

Applicable to:

Students in the fourth grade (including the fourth grade) or above in elementary school. Specifically, the six-year education savings is suitable for students in fourth grade of elementary school or above; the three-year education savings is suitable for students in middle school or above; and the one-year education savings is suitable for students in sophomore year of high school or above.

Deposit Methods:

Education Savings is a zero deposit savings deposit business. There are three types of deposit periods: one year, three years and six years. The minimum starting deposit amount is $50, and the combined maximum maturity principal amount is 20,000 yuan for each account. Deposits can be made in monthly installments, or the depositor can set the number of deposits and the monthly deposit amount according to his/her own situation when he/she opens an account. If you agree to deposit 2 times, each time for 10,000 yuan, 2 months after the full deposit; such as 4 times to deposit, each time for 5,000 yuan, 4 months after the full deposit, if each time to deposit 500 yuan, have to 40 months after the full deposit, and so on.

Financial advice:

1), deposit term. Education savings deposit term as much as possible to choose three-year, six-year period, these two grades of interest rates are higher.

2), account opening time. The best time to open a six-year education savings account is: the summer vacation of the second semester of the third grade of elementary school to the beginning of the first semester of the fourth grade; the best time to open a three-year education savings account is: elementary school to junior high school in September or junior high school to senior high school in July to September of that year. The best time to open a one-year education savings account is September of the year when you enter your second year of high school.

3), deposit amount. The amount of the deposit determines the amount of interest and tax exemption that the depositor enjoys. That is to say, in the same deposit period, the fewer the number of deposits contracted, the more the amount of monthly deposits, the more interest-bearing principal, the more interest-bearing days, the more interest and enjoy the tax exemption will be more. If you deposit six years of education savings, each deposit of $ 500, 40 deposits, the total amount of interest at the end of the deposit period than each deposit of $ 5,000, deposits 4 times less; than each deposit of $ 10,000, deposits 2 times, the total amount of interest at the end of the deposit period is even less.