I heard that a new type of deposit product is about to be launched? Is that right?

Yes, that's correct. Recently, the central bank and the China Banking and Insurance Regulatory Commission will initiate a pilot program for specific retirement savings services. The first batch will be piloted by four large state-owned commercial banks—Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, and China Construction Bank—in select cities, with a pilot scale of 10 billion for each bank. I believe that with the start of the pilot, this new type of deposit product will be widely introduced in the future, and interested friends can give it a try.

So, what are the features of this product, and how does it differ from regular deposits?

Well, since it's a savings product, it is essentially still a deposit product, and there should be no issues with safety. Of course, the deposit insurance that everyone is very concerned about is also covered by this product.

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However, as a new product, it does have some differences from the term deposits we are familiar with. Let's analyze it in detail:

Firstly, it is named "retirement savings deposit," and from the name itself, we can see that the ultimate purpose of this product is to supplement retirement funds. That is, on the basis of traditional pensions, we can, according to our own financial situation and actual needs, plan some funds in advance to prepare for future retirement.

Since it is for the reserve of retirement funds, its terms are relatively long, with four options: 5 years, 10 years, 15 years, and 20 years. Everyone can choose the appropriate product term based on their age and retirement time.

Of course, following the characteristic that the longer the term deposit, the higher the yield, the interest rates of the retirement savings deposits launched this time should be significantly higher than ordinary term deposits. In this regard, it is indeed good news for the deposit product market, which is gradually declining.How should one choose such products? Are there any risks involved?

With the current interest rates continuously declining and no signs of improvement in the foreseeable future, the retirement savings deposits now being offered, due to their long term, are indeed a good choice for locking in high returns by depositing now.

Moreover, for many young people, under the condition that their economic situation allows, regularly arranging some long-term retirement products can help them develop the habit of forced savings, which is also a good thing.

However, every coin has two sides. After the policy of canceling interest calculation based on the term has been abolished, for the longest 20-year fixed deposit, if one needs to withdraw money in advance, the interest loss will be substantial. This is something everyone must pay close attention to and should not be overlooked in the pursuit of high returns, especially when considering the risks associated with liquidity.

In fact, solving this problem is relatively easy. One can simply deposit in multiple installments and at different times. For example, depositing every six months or every year, or choosing a more flexible method of handling, is possible. The advantage of this approach is that if one needs to use money in advance in the future, they won't lose all the interest. Additionally, it allows for the investment of temporarily unused or saved money over a certain period in multiple installments, maximizing returns while developing the good habit of saving.

However, there is another issue that needs attention, and that is the issue of issuance scale. The four pilot banks in this issue have a total of 40 billion, which is relatively small. If you are interested, you can find out in advance about the four local banks to see if they are issuing, when they are issuing, and other key information. This way, there is a possibility of successfully securing the deposit.

In summary, the introduction of retirement savings deposits not only enriches the bank deposit products but more importantly, it is another significant supplement for future retirement funds. It provides us with more options for our retirement and offers friends with certain economic strength or higher expectations for their future retirement another choice. It also enriches our country's pension insurance system, which is a great benefit to both the nation and its people.So, what do you think about old savings deposit products? Do you think they are worth investing in?

We welcome everyone to leave comments and interact, let's explore together.

That's all for this episode. If you still want to know more about financial management, please leave me a message.