Bank deposits are safer. As far as risk is concerned, there is an essential difference between the two. No matter in any country, deposit is an extremely special financial management tool. In many countries that have not implemented deposit insurance system, in a sense, deposit represents the credibility of the government to a certain extent, and it is the most basic capital preservation product, and theoretically it is an investment product with absolute capital preservation. As far as China is concerned, in the Deposit Insurance Regulations, the safety of deposits is protected by law. Even in the worst case, if the financial institution where the deposit is located goes bankrupt or insolvent, the deposit can be insured up to 500,000 yuan, and the amount of this guarantee will change with the development of the economy.

Money funds are different. From the practical point of view, the money fund does not lose much. But in extreme cases, the money fund may lose money. For example, in the face of the sudden massive redemption of the money fund, the bonds that could have been held at maturity can only be sold at a loss, which may make the net value of the fund fall below the face value. At the same time, when there is an extreme financial crisis, it also faces the possibility of losses.