Some netizens consulted us. They have a large amount of funds in their hands and are not willing to deposit it in the bank for a fixed term. They heard from friends that it is better to buy government bonds and the expected returns are high, but they don’t know whether there are risks.

Are there risks in buying government bonds?

Treasury bonds are equivalent to a country’s credit card, guaranteed by the country’s credibility, so they have the highest security among bonds.

However, risks still exist, and specific risks are divided into two types: credit risk and interest rate risk. However, our Chinese government bonds are classified as A+ high-quality bonds among the three major international rating agencies, so there is generally no credit risk.

Interest rate risk, which is easy to understand, means that after you purchase a treasury bond, the interest rate of the same treasury bond later increases; another point is that the treasury bond has an agreed maturity date. If it cannot be paid in time, it will There is no interest during the payment period. However, treasury bonds are a safe investment, with expected returns higher than deposit interest rates. Especially for middle-aged and elderly people, purchasing treasury bonds as an investment method is one of the best choices.

Which bank is better to choose?

If you want to buy treasury bonds over the counter at a bank, you can go to an outlet to apply for purchase of certificated treasury bonds. Try to choose big banks such as Industrial and Commercial Bank of China, China Construction Bank, Bank of China, Agricultural Bank of China, etc. Note: Certificate-type treasury bonds are a one-time repayment of principal and interest.

If you want to buy treasury bonds online without leaving home, you can also consider electronic treasury bonds. Compared with purchasing certificate treasury bonds at the bank counter, the purchase of electronic treasury bonds is simpler and more convenient. You can buy it at the bank counter or online banking. And another advantage is that electronic treasury bonds pay interest once a year and pay the principal last time. At the same interest rate, the expected return on electronic treasury bonds is more cost-effective. Likewise, try to choose big banks such as Industrial and Commercial Bank of China, China Construction Bank, Bank of China, Agricultural Bank of China, etc.