How secure are CDs? Risk of Large Certificates of Deposit

Large-amount certificates of deposit: It is a personal deposit, which enjoys the protection of deposit insurance, that is, 100% compensation within 500,000 yuan. The minimum purchase threshold is high, generally 200,000 or 300,000 yuan is required, and the interest rate is about around, and the interest rate of large certificate of deposit products of small and medium-sized banks will be higher.

Under normal circumstances, large-denomination certificates of deposit can be withdrawn in advance or partially in advance (subject to the provisions of the product manual).

You can also pay attention to the smart deposit products of small and medium-sized banks, which also enjoy deposit insurance protection, that is, 100% compensation within 500,000 yuan, and the "interest rate" is about 4%, which has the advantages of high liquidity (can be withdrawn in advance) and the interest rate is higher than that of general time deposits.

Or pay attention to "Du Xiaoman Technology Service Account (duxiaomanlicai)" for detailed product information. Investment is risky, and financial management needs to be cautious!

Large-denomination certificates of deposit are certainly riskier than small-denomination certificates of deposit, but the key is to see whether the bank you deposit in is operationally safe, generally speaking, state-owned banks are the safest.

Large certificates of deposit. The main risks are as follows:

1. The risk of loss of principal.

Large certificates of deposit belong to personal deposits, enjoy deposit insurance protection, that is, 100 compensation within 500,000, more than 500,000, bank bankruptcy may lose a certain principal, although this situation is rare, but it will also exist.

2. Risk of loss of income.

Large-amount certificates of deposit have a certain term, generally divided into 1 month, 3 months, 6 months, 9 months, 1 year, 18 months, 2 years, 3 years and 5 years. In the face of this situation, it is best for users to choose the type of variety reasonably according to the stool branch cycle of their idle funds.

Extended information: 1. Certificates of deposit and fixed deposits of banks.

The difference? 1. The investment threshold is different.

Generally speaking, the minimum amount for individual investors to purchase large-denomination certificates of deposit is 200,000 yuan. A fixed deposit is only $50.

2. Interest rates are different.

The interest rate on large certificates of deposit is higher, and the interest rate on large certificates of deposit is generally at the benchmark interest rate.

It rises by 40% to 50%, while CDs are generally 20% to 30%.

3. Different liquidity:

Large-denomination certificates of deposit can be transferred, withdrawn or redeemed in advance, while fixed certificates of deposit can only be withdrawn in advance after maturity.

4. The deposit period is different.

There are six types of deposit periods, and Zao Shimin is divided into: three months, six months, one year, two years, three years, and five years. After the expiration of the deposit period, you can withdraw the principal and interest or continue to roll over the deposit according to the original term, and there are 9 deposit periods for large-value certificates of deposit, namely:

1 month, 3 months, 6 months, 9 months, 1 year, 18 months, 2 years, 3 years, 5 years.

2. It is not recommended to buy large-denomination certificates of deposit for the following reasons:

1. Interest on large-amount certificates of deposit and bank wealth management products of the same maturity.

The interest rate on large certificates of deposit is very low. Although the bank's wealth management products are not guaranteed to guarantee the principal and returns, the probability of loss is still very small, so in the case of relatively low risks, the advantage of higher interest rates is greater. The annual interest rate of a general large certificate of deposit.

In the case of not rising, it will not exceed 2%, and the yield of wealth management products.

About 4%. 2. The starting point of large-amount certificates of deposit is high, generally large-amount certificates of deposit are 200,000 yuan, and bank wealth management is generally only 50,000 yuan, if you buy 200,000 yuan in the bank, the interest rate will generally be higher.

3. Compared with the interest rate of treasury bonds, the interest rate of large-denomination certificates of deposit is not as high as the yield of treasury bonds.