1. Different investment directions.

Subscription funds raised from bank financial products are generally invested in the bank's own capital pool.

Banks that issue products will use this capital pool to invest in bills, bonds, currency funds, etc. in the interbank market.

The income from the entire capital pool is then distributed to various financial products previously issued.

The payment of principal and income comes from the principal and income of the entire capital pool.

There are many types of trust financial products, and the investment directions of different products are also different. They mainly include real estate, infrastructure, equity, debt, etc.

The principal security and expected returns of trust products are provided by collateral and company guarantees.

2. The investment thresholds are different.

The investment threshold for bank wealth management products is mostly RMB 50,000 to RMB 100,000. Each trust product has an upper limit of 200 investors, so the investment threshold is mostly set at RMB 1 million.

Moreover, there are generally only 50 investment quotas below 3 million.

3. Expected returns are different.

The annualized rate of return of bank wealth management products is mostly between 3% and 5%, and the rate of return has a further downward trend after successive interest rate cuts and reserve requirement ratio cuts.

The annualized rate of return of trust financial management products is mostly between 8% and 12%, which has great advantages over bank financial management products.

4. The investment periods are different.

The investment period of bank financial products ranges from 30 days to 180 days, and rarely exceeds one year.

The investment period of trust financial products is longer, usually one to two years.