But recently, depositors have discovered some new situations, which may make depositors unexpected and confused. That is, when you go to the bank for a time deposit, the account manager always advises you to deposit it for one year, not for a long time. The longer the deposit time, the lower the cost for banks to absorb deposits. Why should depositors be advised to save for a short time now? Does long-term time deposit smell bad?
In fact, the essence of this phenomenon is that under the premise of free floating interest rates, banks should consider the long-term cost and let the counter staff guide customers to choose the deposit products with the best bank cost. After thinking about it, it may still be the long-term trend of LPR.
At present, the basic interest rate implemented in China is actually a transitional stage of two States, one is the benchmark interest rate for deposits and loans announced by the central bank, and the other is the LPR interest rate. The benchmark deposit interest rate table published by the central bank (including deposit interest rate and loan interest rate) is a guiding price and a lower interest rate (the lowest interest rate). However, in the capital market, the interest rates adopted by banks are all internal interest rate pricing, and are constantly adjusted with reference to the market LPR interest rate.
The central bank explained before that although LPR is the inter-bank loan interest rate, it will also change in the same direction as the deposit interest rates of various banks. In the future, the benchmark deposit and loan interest rate table and lpr interest rate of the central bank will be maintained for a long time, and the benchmark deposit and loan interest rate table will not be cancelled for the time being. But the benchmark interest rate of the long-term central bank will gradually withdraw from the market.
The loan interest rate is the interest rate at which banks earn profits. Now it's all set by LPR, but LPR has been adjusted four times a year, all of which are downward. The one-year LPR interest rate dropped from 4.25% to 3.85%, a decrease of 40 basis points, which means a decrease of 0.4%. For banks, the income from housing loans will be effectively reduced now. At this time, if the deposit cost is reduced, the bank can still maintain a certain spread profit.
If the bank takes deposits, which are medium-and long-term time deposits, then after the interest rate goes down, it is equivalent to an increase in bank costs. However, if the deposits are all short-term, and the deposit products are re-selected after maturity, the interest rate will drop and the cost of the bank will also decrease.
For bank tellers, the assessment requirements in the bank are the most important. If it meets the bank's consideration of cost control, it will naturally recommend short-term deposits. In addition, if customers are advised to withdraw long-term deposits in advance, the interest income of depositors may be greatly reduced (the early withdrawal of time deposits is calculated at the current interest rate), which may lead to the risk of customer loss. Therefore, under the general trend of downward interest rates, bank tellers will naturally recommend short-term deposits in order to serve customers for a long time.
So what should bank deposit customers do at this time?
Depositors should pay attention to the listing interest rate table formulated by banks themselves. This table can be seen in official website and business outlets of various banks. Generally speaking, this listed deposit interest rate will be higher than or equal to the benchmark deposit interest rate of the central bank. Especially for some small city commercial banks, rural commercial banks and private banks. Its listed interest rate table in the bank will be much higher than the benchmark interest rate table of the central bank.
Smart depositors should first carefully check the listed interest rates of banks, and then check the special deposits products of banks, especially the large deposit products made by banks themselves. After that, depositors can choose the products with the best interest rate and the best maturity to save.
In addition, savings customers can also purchase long-term time deposit products in batches, which can successfully avoid the reduction of interest income after the interest rate drops. In other words, one-year, two-year, three-year and five-year deposits are distributed in different months, forming a ladder change of rolling deposits.