In view of the current surge in the number of savings deposits and the decline in consumer demand of ordinary people, experts have proposed that the interest rates on ordinary people's deposits should be further reduced to force people to use their savings for consumption, so as to stimulate economic recovery.

In fact, since the second half of last year, the central bank has begun to frequently cut reserve requirements and interest rates. At present, if the domestic bank deposit interest rate exceeds 3%, it is considered very high. It is basically impossible to see interest rates above 4%.

Despite this, the number of domestic savings deposits is increasing rapidly.

We believe that the increase in savings deposits and the sharp decline in consumer spending year-on-year are not because people are unwilling to consume, but because of other reasons: First, after entering 2022, due to the recurrence of epidemics across the country, many people have been blocked.

Confined at home, basic survival problems can only be solved through online shopping, which will lead to a significant drop in domestic consumer demand.

In addition, even if the epidemic situation improves later and some places lift the lockdown, people will try to reduce the number of shopping trips.

Under such circumstances, it is not surprising that residents’ deposits have increased and consumer demand has declined.

Second, after experiencing this repeated epidemic, many people are worried that they will be locked down at home in the future, or will be unemployed and have no source of income, so everyone has realized the importance of savings deposits.

Therefore, people have begun to reduce unnecessary expenses on weekdays and deposit the saved money in the bank.

In fact, even if banks continue to lower deposit interest rates in the hope of stimulating a rebound in consumption, the total scale of deposits will still increase rapidly, because everyone needs to save money to cope with emergencies such as unemployment, disease, and epidemics, and life-saving money will not be easily spent.

dropped.

Third, people’s enthusiasm for buying houses is declining rapidly, and everyone is depositing their money to buy houses in banks.

On the one hand, the real estate market has lost its money-making effect, and even now housing prices in first- and second-tier cities have turned from rising to falling.

In this case, investors and real estate speculators will be in a wait-and-see state.

On the other hand, affected by the recurrence of the epidemic and the sluggish real economy, many people have lowered their income growth expectations, shelved their original home buying plans, and deposited all their original down payments in banks.

Therefore, the number of bank deposits will increase significantly.

Fourth, apart from depositing money in banks, ordinary people really cannot find any safe investments.

Most people who invest in the stock market make one gain, two draws and seven losses, which lacks a money-making effect and is very risky. If you want to invest in funds, fund investments have also suffered large losses this year, with many public funds losing 20%-30%.

In addition, if you want to invest in bank financial products, not only will the rate of return decrease, but you will also have to bear the investment risks at your own risk.

Nowadays, everything you invest in has the risk of losing money. It is better to keep the money in the bank and earn interest. Although the interest income from deposits is constantly declining, it is still much better than losing the principal.

Savings deposits are increasing rapidly, and domestic consumer demand is shrinking. Why are ordinary people willing to save money but unwilling to consume?

1. Affected by repeated epidemics this year, many people have been locked down at home, and consumer demand will definitely decline sharply; 2. Now many people are aware of the importance of saving money. Everyone saves money to cope with unemployment, epidemics, diseases, etc. from time to time.

needs.

3. The real estate market continues to be sluggish, and people’s willingness to buy houses has dropped significantly, so they are all depositing money to buy houses in banks; 4. In addition to depositing money in banks, the risks of investing in other financial management products are too great, so everyone is more willing to deposit money in banks.

Banks, and no longer dare to take risky investments.