What Is a Savings Deposit Account?

Savings deposit means that a resident individual deposits RMB or foreign currency that belongs to him into a savings institution. The savings institution issues a passbook or certificate of deposit as a voucher. Individuals can withdraw the principal and interest of the deposit based on the passbook or certificate of deposit. The savings institution pays the deposit principal in accordance with regulations. Gold and interest activities.

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Current deposits start at one yuan and regular deposits start at fifty yuan.

Unlike China,

Urban and rural residents deposit a temporarily unused or surplus monetary income into a deposit of a bank or other financial institution ^[2]

Means

Refers to a type of personal deposit where the deposit period is agreed upon when the deposit is opened, and the entire deposit is made at one time, and interest is withdrawn in installments over a fixed period, and the principal is withdrawn at one time when due. It is usually deposited from 5,000 yuan. Interest can be withdrawn once a month or several months, and any amount can be withdrawn within the withdrawal limit agreed upon when opening the account. The interest is calculated based on the interest rate of the deposit listed on the deposit opening date, and the interest that is not withdrawn at maturity or withdrawn in advance is calculated based on the current interest rate listed on the withdrawal date. The deposit period is one year, three years and five years. The procedures for opening an account and withdrawing are the same as those for current savings, and the procedures for depositing and withdrawing regularly in the case of early withdrawal are the same.

Refers to a type of savings that can be accessed at any time without a specified period. Current savings starts at 1 yuan. Unlimited storage. Issued by the bank when opening an account

Saving money for convenience is definitely not worth it

Some people save thousands of yuan or even tens of thousands of yuan into the current period just to facilitate the withdrawal. This approach is certainly not desirable. The current annual interest rate for current deposits is 0.36%, the one-year annual interest rate is 2.25%, the three-year annual interest rate is 3.33%, and the five-year annual interest rate is 3.60%. If you take 50,000 yuan as an example, after deducting interest tax, the interest on deposits obtained in three years is about 3024 yuan, and the interest obtained in five years is about 5580 yuan. If you save this 50,000 yuan as a current account, there is only 288 in one year. RMB interest, even if you deposit interest for three years, it is only about 1,000 yuan. It can be seen that the same is 50,000 yuan, the deposit period is the same but the deposit method is different, and the gap between the three-year current term and the three-year regular interest rate is still not small.

The longer the deposit period is not necessarily the more cost-effective

But it is not that the longer the savings period, the more cost-effective. In order to earn more interest, many people have concentrated large deposits on three and five-year periods without carefully considering their expected use time, and blindly deposit all the remaining money into long-term periods. Withdrawing in advance, the phenomenon of "the longer the deposit period, the more the interest will suffer". Interest, which is not withdrawn in advance, is still calculated at the original interest rate. Therefore, individuals should choose the deposit term and type according to their different circumstances.

From today's deposit interest rates, time deposits should be short-term. On the one hand, the impact of the length of the deposit period on interest rates has been small, and the difference between the one-year deposit interest rate and the five-year deposit interest rate is now only 0.675 per month. On the other hand, the deposit interest rate is now the lowest in history, and there is less room for the interest rate to decrease again. If there is an increase in interest rates in the future, if you choose long-term deposits today, you will not be able to enjoy higher interest rates for a while when interest rates are raised, and you will suffer losses. Short-term deposits are highly liquid and can be re-deposited immediately after maturity.

"Snowball" is a cost-effective way to save money

In terms of specific operations, you may wish to adopt a clever method. You can deposit the remaining money in your home for a year and make a time deposit. One year later, there are exactly 12 certificates of deposit in hand. In this way, no matter which month is used urgently, the deposit due in the current month can be withdrawn. If you do nt need the money, you can transfer the maturity deposit with interest and the remaining money on hand for a one-year term. This "snowball" method of saving money guarantees that you will not lose your financial management opportunity.

And now banks have launched automatic deposit services. When saving, an automatic transfer should be agreed with the bank. On the one hand, it avoids the loss of deposits that are not transferred in time after the maturity of the deposit, and the overdue part of the interest is calculated based on demand; At that time, you need to press the adjusted interest rate to calculate the interest, and for the automatic transfer, you can press the higher interest rate before the adjustment to calculate the interest. If the interest rate rises after expiration, you can also take it out and save it.