You should know that Yu’e Bao is a short-term currency fund. Monetary funds mainly invest in short-term futures monetary instruments (generally less than one year, with an average maturity of 120 days), such as treasury bonds, central bank bills, commercial paper, bank certificates of deposit, government short-term bonds, corporate bonds (with higher credit ratings), bank Interbank deposits and other short-term securities. Simply put, these assets are the safest of all investment products.

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Comparison between the two:

Currently, China implements a deposit insurance system. If everyone deposits less than 500,000 in a bank, even if the bank goes bankrupt, the country will The safety of the principal will also be ensured. If you have more than 500,000, you can enjoy this insurance system by opening accounts in different banks. However, it must be noted that only deposits are protected, not financial products. If you buy financial products, there are certain risks, so before you prepare to invest, you must be aware of the various rules and matters you should pay attention to in advance, so that you can better avoid risks

But then again Back, referring to the above risk analysis of money funds, in the case of a sharp currency depreciation, the security of bank deposits is of little significance. However, the convenience of Yu'E Bao far exceeds that of bank deposits, and the income is no worse than bank deposits, so I always use Yu'E Bao instead of bank deposits.

In addition to Yu’e Bao and banks, there are better choices

1. Frequent consumption and reserve funds are best placed in Yu’e Bao

Monetary funds (Yu’e Bao ) is generally called a cash management tool in the field of investment and financial management, which means it can be regarded as cash. The most important thing for daily consumption and reserve funds is ease of use. I hope it can be taken out immediately when needed, and I hope it can always generate income when it is not in use for the time being. Yu'e Bao can fully meet this requirement. There are many money funds, and there are also many financial products similar to money funds issued by banks, many of which are higher than Yu'e Bao, but none of them are as convenient as Yu'e Bao. In addition, only WeChat's Wealth Management Pass meets the requirements like Yu'e Bao< /p>

2. The money that will be used within one or two years is suitable for financial management products and bond funds

If you are sure that the money in Yu’e Bao will not exceed three months, the best choice is not Yu’e Bao but are financial products and bond funds. The suitable investment period for financial products is between three months and one year, and the current annualized rate of return is approximately 3.5%. Most of the financial products in the past one or two years can be regarded as capital guaranteed, but it is hard to say in a few years. It is very convenient to purchase financial products through Alipay.