In recent days, there have been many questions about the deposit insurance system. Can you explain it?
Of course, in the recent inquiries from netizens, there has been a significant number of friends asking about the "deposit insurance system." Many are not very familiar with this policy. Today, we will take a few minutes to address the most frequently asked questions to thoroughly clarify this issue for everyone. Friends who are interested must see it to the end; the content today is really important.
First, let me clarify that this deposit insurance is not an insurance product from any insurance company, but is established by the People's Bank of China according to the "Deposit Insurance Regulations" issued by the State Council in 2015. This means that the deposit insurance system we are implementing now is an official action, designed to ensure the safety of everyone's deposits.
Speaking of deposit safety, how exactly is it protected?
In simple terms, the implementation of the deposit insurance system is to prevent any risk events during the bank's operation that could lead to bankruptcy and collapse. At this time, to ensure the safety of the people's deposits, the state can activate the deposit insurance compensation mechanism to compensate depositors.
I heard that the maximum compensation is only 500,000 yuan, is that correct?
Yes, according to the requirements, in the event of a bank's bankruptcy, the maximum compensation amount is 500,000 yuan in principal and interest combined, which is the total amount of principal plus interest, with a maximum compensation of 500,000 yuan. This is also the reason many people tell you that the maximum deposit in one bank should not exceed 500,000 yuan.
There are a few more points to note here: First, the compensation is calculated based on the depositor as a natural person. This means that regardless of how many cards you have at this bank, or how many branches you have conducted business with, it will only calculate all the deposits under your name on your ID card and then compensate accordingly.Here is the translation of the provided text into English:
Additionally, there is the case of a family where the husband and wife have saved money separately; they can be compensated individually, and this has no relation to the number of family members or how many cards they have.
Is only the deposit compensable? What about wealth management and funds?
The deposit insurance system we are referring to here only covers deposits, which include various types such as fixed deposits, demand deposits, and large-denomination certificates of deposit, all of which are within the compensation scope. However, other financial products like wealth management, funds, insurance, and some innovative deposit-like products are not covered. It is important for everyone to be aware of this.
Have all banks joined the deposit insurance system?
To be honest, I cannot easily answer this question. According to the official platform of the People's Bank of China, this system has been in effect since May 1, 2015. As of the end of October 2020, 4,025 banks had joined. All newly opened banks after that date are required to go through deposit insurance procedures, which means that essentially all banks have now joined this system.
How can I find out if the bank I am dealing with has joined the deposit insurance?
Currently, there are two methods. One is to visit the bank's official website or look at the entrance of the branch to see if there is a "Deposit Insurance" sign. If there is, it indicates that the bank has joined the deposit insurance, and you can deposit with confidence.
The second method is that I have a list of the 4,025 banks that have joined the deposit insurance. If anyone wants to inquire about a specific bank, they can leave a message for me, and I will help you check and let you know if it is on the list.Although, based on the current situation, the likelihood of bank bankruptcy is relatively low, it cannot be ruled out that some small and medium-sized or rural banks may have weaker risk resistance. If their operations encounter problems, there is a possibility of bankruptcy or restructuring. Therefore, it is advisable for everyone to choose financial institutions with a deposit insurance logo for their deposit transactions to avoid unnecessary risks.
That's all for the questions related to bank deposit insurance. If you have any further inquiries, please feel free to leave a comment or discuss with us.
