When we make a deposit in the bank, bank staff will recommend financial products to us. So, will we lose our principal by buying financial products? The following article will take you to learn more about it!

Will I lose my principal when buying financial products?

There is a possibility of losing money when buying financial products, but this mainly depends on which financial product the user purchases. For example, if users choose risky financial products such as stocks and futures, although they have the opportunity to obtain high returns, the possibility of losing principal is also quite high.

How to redeem financial products?

1. Redemption in advance

When users are in urgent need of funds, they will consider redeeming financial products in advance, but this is not the case All financial products support early redemption, and most closed-end financial products do not support early redemption. Most of the financial products that can be redeemed in advance before expiration are open-ended financial products. The more common ones are Yu'e Bao, Lingqiantong, etc. These are open-end money funds, and users can redeem them in advance and withdraw them at any time.

However, different open-end financial products have different early redemption rules. Some can be fully redeemed in advance or partially. And some may only allow all early redemptions. When users purchase financial products, they can check the relevant regulations when signing the contract, or directly consult the financial user manager.

2. Redemption after maturity

1. Automatic redemption after maturity: For some financial products, the system will automatically redeem the user’s principal and income after maturity. The funds will be credited into the user's capital account before the financial product is closed, and no personal operation is required for redemption;

2. Manual redemption after maturity: Some financial products do not support automatic redemption after maturity. It requires manual operation by the user.