Of course, the biggest desire of savings users is to raise interest rates, but with the trend of lower and lower bank interest rates, many people choose other financial channels with higher returns. In fact, do you know why the bank interest rate has dropped? What is the reason for the decline in bank interest rates? Let's have a look!

The bank interest rate is determined by the People's Bank of China. Under macro-control, the central bank will cut interest rates, and the five major banks will cut interest rates accordingly. There are many purposes to cut interest rates: to adjust the total supply and demand of social funds. Standardizing residents' savings can prevent residents from putting their spare money in the bank. Increase the total amount of social money and promote consumption. There are several reasons for the decline in bank interest rates:

1, the overall price level. This is an important basis for safeguarding the interests of depositors. If the interest rate is higher than the price increase rate in the same period, the actual interest income of depositors can be guaranteed to be positive; On the contrary, if the interest rate is lower than the rate of price increase, the real interest income of depositors will become negative. So the interest rate depends not only on the nominal interest rate, but also on the positive interest rate or negative interest rate.

2. Interest burden. For a long time, most of the funds for the production and development of large and medium-sized state-owned enterprises depend on bank loans, and the change of interest rate level has a direct and important impact on the costs and profits of enterprises. Therefore, the determination of interest rate level must consider the affordability of enterprises.

3. benefits. The influence of interest rate adjustment on fiscal revenue and expenditure is mainly indirectly produced by affecting the increase or decrease of fiscal tax paid by enterprises and banks. Therefore, when adjusting the interest rate level, we must comprehensively consider the revenue and expenditure of the state finance. Banks are special enterprises that manage monetary funds, and deposit-loan spreads are the main source of bank income. The determination of interest rate level should also maintain an appropriate deposit-loan spread to ensure the normal operation of banks.

4. Supply and demand. Interest rate policy should obey the overall situation of national economic policy and reflect the requirements of national policies in different periods. Like the prices of other commodities, the determination of interest rate level should also consider the supply and demand of social funds, which is restricted by the law of supply and demand of funds.

In addition, other factors such as duration and risk are also important basis for determining the interest rate level. Generally speaking, the longer the term, the higher the interest rate; The greater the risk, the higher the interest rate. Conversely, the lower the interest rate.