Take the minimum deposit amount of certificates of deposit as an example. If the initial deposit certificate purchased by investors has an annual interest rate of 3.25% and a deposit period of one year, the interest after this single year is 6500; If the annual interest rate of the certificate of deposit falls to 3% during this period, and investors choose to buy a new certificate of deposit and hold it for one year, the interest earned on this certificate of deposit after one year is 6000. The interest rate and investment income of the old and new certificates of deposit do not affect each other.
It is also a large deposit certificate of 200,000 yuan. After the interest rate drops, the income that investors can get after purchasing is obviously less. For investors with certain financial needs, it is not cost-effective to buy certificates of deposit when the interest rate of certificates of deposit is at a historically low range.
CDs interest rate drops, how do investors invest?
1. If investors subscribe for a large amount of funds, they will have the opportunity to negotiate the deposit interest rate with the bank. At this time, the investment risk brought by the change of deposit interest rate in the market will be reduced, and investors can still enjoy a higher interest rate level.
2. If the amount of funds subscribed by investors for certificates of deposit is average, it is difficult to successfully negotiate the deposit interest rate with banks. At this time, investors can change their thinking: give up buying certificates of deposit in big banks and buy certificates of deposit in small and medium banks. The changes of deposit interest rates of various banks are not completely consistent, and there is often a certain time difference between the changes of interest rates of small and medium-sized banks and large banks. At the same time, the deposit interest rate of small and medium-sized banks will be higher than that of big banks, and the interest rate difference between them will be even greater after the big banks cut interest rates. If investors are not satisfied with the investment income of big banks after interest rate cuts, they may wish to look to small and medium-sized banks to find a satisfactory deposit interest rate. You can also invest in other products with high expected returns.
3. You can consider choosing other financial management methods to stabilize financial management income, such as buying structured deposits, national debt, funds and other bank financial products. However, there are certain investment risks in bank wealth management products and funds, and investors should choose appropriate products according to their own risk tolerance when investing.