"Dig a hole, bury some soil, count one two three four five; my own soil, my own land, anything planted grows RMB."
This familiar catchphrase comes from a sketch by Gong Hanlin during the 2002 Spring Festival Gala, titled "The Flowerpot."
The sketch tells the story of a flower seller who hides his private money in a flowerpot.
As a form of comedic performance, using humor in this way is perfectly acceptable. But have you ever seen anyone burying money in the soil in real life?
Such a situation should be quite rare, but a recent news story has broadened our horizons.
According to reports, a few days ago, a special depositor visited the Agricultural Bank's branch in Shuanghe Han Village.
She carried several bundles of RMB and asked the bank staff if they could be exchanged.
The staff, seeing the large amount, had to call the bank manager, who, with his extensive experience in the banking industry, was also witnessing such a scene for the first time.
Firstly, the amount of money was substantial, with a preliminary estimate of around 500,000 RMB.Secondly, the currency is extremely damaged, with some notes sticking together and others crumbling at the slightest touch. According to the individual involved, there are still 1.5 million yuan at home in similar condition. It turns out that the individual's father made a fortune in business a few years ago. When it came to storing and handling this money, the father was in a dilemma because he often saw news reports on TV about bank card fraud, leading him to feel that keeping the money in a bank was not secure. Thus, following an ancient practice, he bundled the money and buried it in his own yard. However, when the money was unearthed after five years, it had become the current state.
Currently, bank staff are in the process of separating and identifying the currency. According to the bank staff, the estimated loss is around a quarter. That is to say, out of 2 million yuan, only about 1.5 million yuan is expected to be exchanged in the end.
The "Regulations on the Exchange of Damaged and Soiled Renminbi by the People's Bank of China" stipulate that the exchange of damaged and soiled Renminbi is divided into two situations: "full amount" and "half amount". Financial institutions should exchange damaged and soiled Renminbi that can be identified by denomination, with more than three-quarters (including three-quarters) of the note remaining and the patterns and texts able to be connected as originally, at the original face value in full; damaged and soiled Renminbi that can be identified by denomination, with between one-half (including one-half) and three-quarters of the note remaining, and the patterns and texts able to be connected as originally, can be exchanged at half of the original face value.In fact, this is just a rough estimate on the surface. If we calculate it in detail, the loss could be even greater.
If five years ago, instead of burying the money underground, it had been deposited in a bank, even at an interest rate of 4%, the annual interest would be 80,000, and over five years, the interest would amount to 400,000.
That is to say, over five years, the loss would be 900,000.
Of course, from a financial management perspective, burying 2 million in cash underground, even if it is safe, cannot generate any returns.
If someone with a bit of financial knowledge chooses a bond fund with a lower risk, with an annualized return rate of 6%, the principal and earnings over five years would be approximately 2.67 million.
Calculated this way, over five years, the loss would be 1.17 million, a figure that has already exceeded half of the original principal.
Therefore, for ordinary people, to ensure the safety of the principal, keeping money in the bank is still the safest first choice.
Firstly, bank deposits are guaranteed to preserve the principal and pay interest.
Secondly, bank deposits are protected by an insurance system, so even if the bank goes bankrupt, depositors can still receive compensation of up to 500,000.Thirdly, the custody measures and technical measures of banks are very comprehensive.
On the other hand, holding cash in hand carries the following risks:
First, the risk of theft and robbery. If money is stolen or robbed at home, it is a loss for nothing. Sometimes, even if the case is solved, the money may have been squandered by criminals, and one can only consider it bad luck.
Second, the risk of currency damage. Due to the special material of paper money, it is very susceptible to damage, such as mold and insect infestation.
Third, the risk of accidental loss. Some people hide their money in places like quilts or shoeboxes, and due to the unawareness of their relatives, these items are thrown away as trash, resulting in financial loss. Such incidents are not uncommon in the news.
Fourth, the risk of reduced earnings. Money kept in one's hand or at home can only sleep, and it does not bring any returns. However, when placed in a bank, there will be some returns, no matter how small. Accumulated over time, it can also become a significant amount of wealth.
As ordinary people, keeping money in the bank is very safe, and there is no need to worry. On the contrary, keeping a large amount of money at home is the greatest risk. I hope everyone can have a clear understanding of this issue and avoid financial loss.
