Our investment and financial management should generally be considered from three angles: profitability, security and liquidity. Generally speaking, the higher the income, the worse the security and the lower the liquidity. Therefore, these aspects should be considered at the beginning of investment and financial management.
Security Analysis Generally speaking, the safest investment and financial management methods are deposits and national debt.
The deposit is very safe. On the one hand, the possibility of bank failure is very low. So far, only one Hainan Development Bank in China has failed. On the other hand, deposits can be protected by the deposit insurance system, and the principal and interest within 500,000 yuan can be paid in full.
The national debt is also very safe. National debt is linked to national reputation, and there is no record of default of national debt in China. 20 18 year-end national debt balance limit 15.69 trillion yuan, 20 19 year-end central fiscal deficit10.83 trillion yuan, 20 17.52 trillion yuan year-end national debt balance limit. Like ordinary bank wealth management products, as well as some bond funds, stock funds and trust products, it is difficult to achieve guaranteed income.
Although insurance is a way of financial management, it is different from ordinary financial management. Insurance is basically a consumer-oriented financial management project, which deals with risks. Relatively speaking, the life insurance products of insurance companies are not unsustainable, because the Insurance Law stipulates that the CBRC can designate insurance companies to undertake the life insurance business of bankrupt insurance companies.
According to the liquidity analysis of bank deposits, only demand deposits are completely liquid. Time deposits must honor their promises. If the time deposit needs to be withdrawn before its maturity, it can only be withdrawn at the current interest rate. At present, many banks are promoting some smart deposits and calculating interest in installments according to the time of deposit and withdrawal. For example, if you deposit for more than three years, you can interest at the three-year fixed deposit rate (but generally lower than the bank's lump-sum deposit rate of three years).
Liquidity of national debt. Treasury bonds are not as liquid as bank deposits, but they are similar to smart deposits. Those who hold government bonds for a certain period of time should pay them in advance at the interest rate stipulated by the state. The corresponding interest rate will be lower than the maturity rate.
Purchase of national debt
In order to supplement financial funds, China will issue national debt every year, which is also a wealth management product that many people will choose. Because it is safer to have a country as a credit endorsement than to deposit money in a bank, there is no need to worry about not getting it back, and the interest rate of national debt will be higher than that of banks. It can be said that it is the least risky financial product on the market now. According to the data, the 3-year interest rate of 20 19-year treasury bonds is 4% and the 5-year interest rate is 4.27%. This interest rate is higher than the bank's fixed rate, but it will be held for a long time, usually three to five years. If you redeem it in advance, there will be some losses.
To sum up, this is the difference between deposit, national debt and insurance. Generally speaking, it is better to suggest that we diversify our funds. Long-term idle funds are used for certificates of deposit or government bonds with a maturity of more than three years. Short-and medium-term funds can buy bank wealth management products, and it is safer to choose wealth management products with risks below R3 level, and the yield is generally around 4%.