It is often said, "If you don't manage your finances, they won't manage you." When it comes to financial management and savings, it's essential to pay attention because, after all, what's at stake is hard-earned money. Who wouldn't feel the pain of losing it? Who would willingly have a grudge against money?
Is it safe to deposit 100,000 yuan in a private bank?
During the pandemic, while staying at home with nothing much to do, I reviewed my savings and found that a 100,000 yuan financial product was about to mature. Since current financial products no longer guarantee principal and interest, my interest in purchasing them is not high. After all, the returns are not very high, and there is a certain level of risk involved, which doesn't feel like a good deal.
Therefore, I found a great deposit product on JD Finance: Zigong Bank's Zi Hui Cun Yue Yue Hong. This is a deposit product issued by Zigong Bank, with a minimum investment amount of 50 yuan, which is almost no threshold. Moreover, as a bank deposit product, the principal and interest are guaranteed, with 100% compensation up to 500,000 yuan, ensuring high safety.
The product design is also flexible, allowing you to freely choose interest payment periods of 30, 90, 180, or 360 days, with interest rates ranging from 4.25% to 4.8%.
Since the returns on financial products are not very high and there are some minor risks involved, why not choose this deposit product? I just shared this good news with my wife, but she strongly opposed it. "Zigong Bank? Never heard of it. What if it's not safe? It's more worry-free to keep it in a large bank."
I had to patiently explain to her the differences and relationships between state-owned commercial banks and private banks. After nearly an hour of popular science education, I finally convinced her completely.
Popular Science: State-owned Banks and Private Banks
I think everyone must have the same concern. Some of these private banks, whose names we have never even heard of, are they reliable at all?Where do people usually save their money? China Construction Bank? Industrial and Commercial Bank of China? Have you ever considered depositing money in private banks? I think most people would choose to deposit their money in the six major state-owned banks rather than small city commercial banks or private banks.
The reason is quite simple: large banks have a large scale, good reputation, and are safer, while private banks always give people the impression of being somewhat "unreliable."
First, let's introduce the six major state-owned banks: the so-called six major state-owned banks are China Bank, Agricultural Bank of China, China Construction Bank, Industrial and Commercial Bank of China, Bank of Communications, and Postal Savings Bank of China. The total assets of the six major state-owned banks are huge, and they have strong profitability. Because these banks are related to the national economic security, their own safety is also the highest.
Not long ago, the Industrial and Commercial Bank of China announced its 2019 performance: the total assets exceeded 30 trillion, with an average daily profit of 859 million yuan in 2019. The Industrial and Commercial Bank of China, because it is the world's largest market value, has the most deposits, and the most profits among listed banks, was given the nickname "Galaxy Bank" by netizens. What's more interesting is that the abbreviation of the Industrial and Commercial Bank of China is ICBC, which was humorously translated by netizens as "Love to save or not to save." Moreover, the Industrial and Commercial Bank of China has been at the top of the "Global Bank Brand Value 500" for four consecutive years and has been at the top of the "Global Bank 1000" for seven consecutive years.
Compared with these powerful large commercial banks, private banks and city commercial banks do not have so many glories.
First, let's talk about city commercial banks. They were originally established to serve the economic development of cities, and the characteristic of city commercial banks is that they are named after cities, such as Jinzhou Bank, Changsha Bank, etc.
Initially, the business scope of city commercial banks was limited to the city, but later, with the expansion of business, some commercial banks gradually blossomed and bore fruit within the province, and some have even developed outside the province.
Compared with city commercial banks, private banks are younger and are also a product of the era of financial development. Taking Blue Ocean Bank as an example, it was approved to be established in June 2017. It is the first private bank in Shandong, with a registered capital of 2 billion yuan, and was initiated by seven private enterprises in Shandong Province, including Weigao Group Co., Ltd., Chishan Group Co., Ltd., and Dishang Group Co., Ltd.Upon comparison, everyone must have a "sense" of the situation: one is large-scale, the other is small-scale; one has national endorsement, while the other is backed by private capital. It seems that the advantages and disadvantages are clear at first glance, but is this really the case?
Private banks also have their own unique advantages.
It is true that private banks do not have an advantage in terms of scale, but for us ordinary depositors, they should be a better choice, simply because of one thing: higher interest rates.
Speaking of which, we ordinary depositors choose to deposit money in banks mainly for two reasons: first, security; second, interest.
In terms of security, it goes without saying that state-owned banks are large-scale and well-capitalized, naturally being the safest. However, the security of private banks is also guaranteed. This is because private banks are also established with the approval of the China Banking and Insurance Regulatory Commission, and their operations are also supervised by relevant national departments. They are also regular financial institutions, and their security is also guaranteed.
Of course, if your bank deposits are at the level of millions or even tens of millions, it is recommended to make a careful choice. But for ordinary deposits of a few hundred thousand, there is no problem choosing a private bank, because deposits in private banks are also protected by the deposit insurance system. In the event of bankruptcy risk, they also enjoy a maximum compensation of 500,000.
This is like two children playing snowball fights; in fact, each person wearing an ordinary canvas hat can provide a certain level of protection, and there is no need to buy a bulletproof helmet to wear, which would be an overkill.
On the basis of solving security, let's take a look at the interest rates. The current interest rates of state-owned banks are: 1.75% for one-year term, 2.75% for three-year term.
Let's take a look at the interest rate situation of Zigong Bank, which I have chosen, according to different interest calculation periods:Interest is paid in 30 days at an interest rate of 4.25%; in 90 days at an interest rate of 4.4%; in 180 days at an interest rate of 4.6%; and in 360 days at an interest rate of 4.8%.
If the difference doesn't seem significant, let's consider an example.
Take 100,000 yuan as an example. If you deposit it in a large state-owned bank with an interest rate of 1.75%, the interest for one year would be 1,750 yuan.
If you deposit it in Zigong Bank with an interest rate of 4.8%, the interest for one year would be 4,800 yuan. That's quite a difference, isn't it?
Here's a brief guide on how to proceed:
Firstly, you need to download the JD Finance app on your mobile phone. If you have shopped on JD before, you naturally have a JD membership number, which you can use to log in. If not, it's also simple; just bind your phone number, which I won't elaborate on.
Find "Bank Selection" under the "Wealth" section, where you will see many banks. You can take a look at each one, as they offer various deposit products. Let's take Zigong Bank as an example and click to enter.
You will then see a variety of deposit products available. If you find a product that satisfies you, you must first open an electronic account, which is equivalent to an electronic bank card for Zigong Bank.This involves an operation of binding a bank card, which means that we need to use this bank card to transfer money to the electronic account of Zigong Bank, and then we can use the money in the electronic account to purchase shares of various deposit products.
It should be noted that different banks have different daily deposit and withdrawal limits. For example, some banks have a daily limit of 2000 yuan, while others have a limit of 50,000 yuan.
At that time, I chose to bind a Construction Bank card and then transferred 100,000 yuan in two installments to the electronic account, and then purchased shares in two installments. The rest is to wait for the dividend payment day and receive the interest.
In fact, I have always believed that not only in financial management, but also in many unknown things in life, we must explore bravely with some preparation, so that we can discover more beauty in life.
