First, the global interest rate cut under the epidemic is a foregone conclusion, which directly affects your money bag!

With the COVID-19 epidemic becoming more and more serious in the world, it is inevitable that the global economy will stop declining. Many countries have introduced monetary and fiscal policies to stimulate the economy. One of the most important means is to cut interest rates!

For example, in March 15, the United States directly lowered the interest rate to 0%, and the refinancing rate in the euro zone has also dropped to 0%. Japan, Canada, Australia and other countries also cut interest rates in March.

China did not adjust the benchmark deposit interest rate until early April, but has lowered the interest rates of LPR and MLF. Some friends who have mortgages may find that if the contract they signed is a floating interest rate, they can now adjust the loan to be tied to LPR, thus paying less interest.

This seems to be a good thing, but it also hides problems. Banks have to pay the same interest on the deposit side, but the income on the loan side is less, and the burden on banks will be heavy. It won't last long for banks to hand over profits to lenders.

In fact, the central bank is probably already planning to lower the benchmark interest rate, but the policy needs to be gradually introduced. Minimalism strategy found some clues in the news:

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It is conceivable that the decline in bank deposit interest rate is likely to be a problem that we will be right in the near future, and it may really affect everyone's money bag.

Second, don't panic! Minimalist strategy teaches you to change the deposit method to raise interest rates.

On the eve of interest rate cut, what we should do most is to choose the appropriate financial management method and lock in the fixed income funds in our hands with medium and long-term high interest rates. Today, the minimalist strategy introduces you to a bank deposit product, which can not only help you raise the deposit interest rate on the basis of ordinary time deposit, but also lock in the medium and long-term high interest rate on the eve of interest rate cut, thus gaining the "wool" of the bank. The deposit product is a large deposit certificate.

1) What is a certificate of deposit?

Large deposit certificates refer to large deposit certificates issued by banking deposit-taking financial institutions for individuals, non-financial enterprises, government organizations and so on. This is a bank time deposit.

2) Threshold for large deposit certificates: 200,000 deposits.

3) Deposit certificate interest rate

The deposit interest rate is determined by the banks themselves, and usually rises by 40-55% on the basis of the benchmark interest rate, which is significantly higher than the ordinary time deposit interest rate (for example, the time deposit interest rates of the four major banks basically do not rise).

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At the same time, another advantage of certificates of deposit is the fixed interest rate, which means that once the interest rate is determined, it will not be adjusted with the change of the benchmark interest rate. Even if the benchmark interest rate is lowered in the future, our certificates of deposit can enjoy the relatively high interest rate at present during the deposit period.

Is CDs risky?

Since the certificate of deposit is a bank time deposit, it guarantees the principal and interest.

If you are still worried that small banks may close down (although this probability is extremely small, contracted banks have already taken risks and should be taken seriously), you can choose to deposit less than 500,000 yuan in each bank and sit back and relax. Because deposits within 500,000 yuan are protected by the Central Bank's Deposit Insurance Regulations, even if the bank goes bankrupt, the money will still be returned to the depositors. Theoretically, more than 500,000 deposits and wealth management products purchased in banks are not protected by this regulation.

5) The flexibility of certificates of deposit is better than that of time deposits.

Banks can provide certificates of deposit transfer and certificates of deposit mortgage for large certificates of deposit, and the interest can be calculated on a monthly, quarterly and annual basis. These flexibility are not available in ordinary time deposits.

For example, if you deposit a 1 year certificate of deposit in the bank and want to use the money after half a year, you can transfer the certificate of deposit to others on the bank APP, you can also use the certificate of deposit as collateral to borrow money from the bank, and you can directly terminate the certificate of deposit in advance and take out the money with interest roughly equivalent to six months' certificate of deposit.

Of course, different banks have different policies on certificates of deposit, so it is necessary to confirm the specific terms with the bank staff and make choices according to their own needs.

Third, how to buy a large deposit certificate is more cost-effective?

First of all, it is easier to get high interest rates in small and medium-sized banks and city commercial banks. Due to the stricter self-discipline mechanism of banks, several big banks that have established diplomatic relations between workers and peasants usually raise the benchmark interest rate by 40-50% (the highest in three years is 4. 125%). Small and medium-sized banks and city commercial banks have relatively loose self-discipline mechanisms, and they can usually buy products with benchmark interest rates rising by 50-55% (the highest is 4.2625% in three years). In rare cases, there is a special case of 60% increase. However, products that float 55% are not always available, and products that float more than 50% are good certificates of deposit.

Secondly, by telephone or on-site communication with bank employees, products with higher interest rates may be found. Because certificates of deposit are purchased in bulk, high-interest products may be sold out in advance. Moreover, bank employees will have a better understanding of when the high-interest products to be sold in the future will be launched.

For example, when preparing this article, minimalist strategy inquired official website of China Industrial and Commercial Bank, and found that only products with benchmark interest rate rising by 40% were sold online. I consulted a friend of ICBC and learned that in a few days, 50% of the products will be on sale. Therefore, more communication with bank employees to obtain information can also help us buy products with higher cost performance.

4. What kind of wealth management people are suitable for large deposit certificates?

1) investors who want to obtain stable and fixed income. Large deposit certificates belong to bank deposits and are high-quality products with guaranteed capital and interest. Buying fixed-income products does not need to bear the risk of fluctuations in stocks and wealth management products. If it is sold by a bank, there is no possibility of being cheated.

2) Investors who want to lock in medium and long-term higher returns in advance in the future interest rate reduction environment. Now that the global interest rate cut channel has been opened, China may follow suit. If you want to lock in a medium-and long-term high interest rate now, you can also buy a large deposit certificate.

3) Fixed-income investors who want to maintain a certain liquidity. Compared with fixed deposits and closed-term wealth management products, certificates of deposit are transferred in various ways, and the interest loss is small when terminated in advance. Buying certificates of deposit can keep your funds relatively liquid.

Welcome to pay attention to the "minimalist strategy" and learn more about financial management and law.