I think the annual interest rate of 5% is very cost-effective, because in the capital market, the yield of more than 4% is already a relatively high income.

for small-amount bank wealth management products, the deposit interest rate can only reach about 2% per year, and the longer the service life, the higher the rate of return, and the biggest advantage of deposit is that the risk is relatively low. It is precisely because of this that many people will choose to buy funds and stocks, but the yield of funds and stocks is relatively high, which means that the risk is relatively high. 5% is a relatively high income.

the annualized rate of return of 5% is already a relatively high rate of return in this society. For Alipay and the change service in WeChat, the annual rate of return can only reach 2.7%, and it is constantly changing every day, basically less than 3%. The risk of bank deposits is very small.

The reason why many people choose to return money from banks is because the risk of bank deposits is relatively low, and the monthly income is naturally low. If more funds can be put into the fund, their comprehensive rate of return will be improved. The comprehensive allocation of assets is very important.

For many people, when investing, they will choose bank deposits with comprehensive allocation. Although they have a fixed annualized income of 5%, the income they can get is really low compared with other wealth management products. If they want to pursue higher income, it is best to choose to buy some funds, because the annualized rate of return of funds can reach about 7%.

Different people actually have different financial management and pursuits. For those who rely on wage income in their lives, they will feel more disgusted with risks in the process of financial management, so they will choose bank deposits, but long-term deposits with bank deposits of five years can only get an annualized rate of return of 5%.