On July 29th, 2022, the People's Bank of China, China Banking Regulatory Commission and China jointly issued the Notice on Carrying out the Pilot Work of Specific Pension Savings, which started the pilot work of specific pension savings to better meet the needs of residents' pension savings. So in which cities will the pension savings be piloted?

In which city is the old-age savings deposit piloted?

The pilot cities of savings deposits for the elderly include Hefei, Guangzhou, Chengdu, Xi and Qingdao. At the same time, the old-age savings deposit products are launched by four large domestic banks, that is to say, only China Industrial and Commercial Bank, China Bank, China Agricultural Bank and China Construction Bank are eligible to issue old-age savings products.

The launch date of this old-age savings product is 2022 1 1.20, and the pilot period is one year. According to the requirements of the Notice, specific pension savings products include lump-sum deposit and withdrawal, lump-sum deposit and withdrawal and lump-sum deposit and withdrawal. The term of products is longer than that of ordinary time deposits, which can be divided into four grades: 5 years, 10 years, 15 years and 20 years. The product interest rate is slightly higher than the five-year time deposit of large banks. It should be noted that due to the high requirements for the stability of pension savings, the maximum deposit principal of depositors in a single pilot bank for specific pension savings products is 500,000 yuan, which can be better protected by the deposit insurance system.

To sum up, the specific old-age savings products to be launched this time have a long term and moderate interest rate, which are more suitable for groups with low risk appetite and low liquidity requirements and pursuing fixed income. If users have purchasing needs, they can pay attention to the relevant announcements of the four major banks and handle the old-age savings business through official channels.