What does Bank Structured Deposit mean?

Structured deposits: refers to deposit products in which the Bank provides depositors with full protection of the principal, and pays floating interest to the depositors in accordance with the performance of the underlying assets in accordance with the relevant provisions of the prospectus, and is included in the scope of deposit insurance.

The underlying targets are generally **, CSI 300 Index, CSI 500 Index, etc. The principal amount of structured deposits is used flexibly by the Bank's proprietary funds, and the purpose is the same as that of general deposits. Structured deposit funds are available in the client's deposit account at any time, which is the same as that of ordinary deposits.

Structured deposits are a type of bank deposit that has become popular in recent years.

That is, depositors keep their money in the bank. On the basis of ordinary deposits, banks derive a part of financial wealth management products. It is also linked to the fluctuation of interest rates and indices in order to obtain higher returns gradually, but it is also risky.

Because of this, risky. Therefore, a year ago, the central bank's new regulations on asset management cancelled structural deposits, such a project. So you can't buy it anymore, and if you buy it, you can take it out automatically when it expires.

Structured deposits, also known as yield enhancement products, are innovative deposits that combine interest rate and exchange rate products with traditional deposit business. This product is suitable for customers who have high requirements for returns, have a certain understanding of foreign exchange rates and interest rate trends, and have the ability to take certain risks.

High yields. Foreign exchange structured products are products that achieve higher investment returns on the premise that customers voluntarily assume certain risks. Generally speaking, taking semi-annual USD products as an example, the income is about 3% or more (tax-free); The corresponding pre-tax income on semi-annual US dollar deposits is 20% of the interest tax.

Principal Guaranteed. Structured deposits are usually 100% principal protected and the client is only exposed to the risk that interest may be lost, but there will be no loss of principal.

Poor flow. The liquidity of structured deposits is poor, and customers are not allowed to withdraw the principal in advance during the structured deposit period. Therefore, customers need to pay attention to the issue of capital flow when investing.

For investors, the introduction of structured deposit products has undoubtedly broadened their investment channels, and this kind of products with low entry thresholds, relatively small risks and higher returns than ordinary time deposits have quickly become the main foreign exchange investment methods for risk-averse small and medium-sized investors, which is conducive to the circulation of wealth and promotes the optimal allocation of resources.

Structured deposits refer to financial products with certain risks in which investors legally hold RMB or foreign currency funds in banks, which are linked to interest rates, exchange rates, commodities, credits, indices and other financial or non-financial subject matter by embedding financial derivatives (including but not limited to forwards, swaps, options or **) on the basis of ordinary deposits.

Features:

1. High returns: Foreign exchange structured products are products that achieve higher investment returns on the premise that customers voluntarily bear certain risks. Generally speaking, taking semi-annual USD products as an example, the income is about 3% or more (tax-free); The corresponding pre-tax income on semi-annual US dollar deposits is 20% of the interest tax.

2. Principal protection: Structured deposits are usually 100% protected by the principal, and the risk borne by the customer is only the possible loss of interest, while there will be no loss of principal.

3. Poor liquidity: The liquidity of structured deposits is poor, and customers are not allowed to withdraw the principal in advance during the structured deposit period. Therefore, customers need to pay attention to the issue of capital flow when investing.

Bank structured deposit is to divide the customer's funds into more than two parts, divided into different ways to eat interest, is called structural. This means that not all of the money in structured deposits is a deposit, and a small part is used to invest in other financial products, and financial derivatives have been introduced. For example, a customer goes to the bank to handle a structured deposit of 1 million, of which 900,000 is used for deposits, and 100,000 is used to invest** or investment options, etc., and the 100,000 investment** and options are bound to be risky, and there will be a loss.

When the 100,000 yuan is used to invest in financial derivatives and there is a loss, will the bank punish the loss? This is absolutely impossible, and the customer will also punish this loss.

The so-called structured deposit refers to a financial product with certain risks in which investors legally hold RMB or foreign currency funds are deposited in banks, and the banks embed financial derivatives (including but not limited to forwards, swaps, options or **) on the basis of ordinary deposits, and link investors' returns to interest rates, exchange rates, commodities, credit, indices and other financial or non-financial subject matter with certain risks.

To put it simply, structured deposits are neither ordinary deposits nor bank wealth management, and are composed of two parts, ordinary deposits and options for derivatives. Through a large proportion of bank deposits, a stable interest income is obtained, and then a small proportion of derivative options are obtained excess returns, and the subscription starting point is generally more than 10,000 yuan.

The effect of reducing the scale of structured deposits is obvious.

With the end of the era of "capital preservation" of bank wealth management, in recent years, deposit products and treasury bonds have become the most sought after alternatives by bank wealth management investors. As one of the products with more guaranteed returns, structured deposits have undergone significant rectification, but they are still attracting attention.

The difference between structured deposits and wealth management products.

The so-called "structured deposit" refers to a product that embeds financial derivatives such as options on the basis of ordinary deposits, and is linked to the volatility of interest rates, exchange rates, stock indexes, etc., so that depositors have the opportunity to obtain higher returns. In other words, it's "Fixed Deposit + Option".

Due to the combination of deposits and derivatives, structured deposits have both "definite deposit returns" and "imagination space for derivatives investment", and obtain a return level that is not lower than a certain yield within a range of positive returns.

For example, the expected annualized return of a product is that it observes the underlying during the observation period, that is, the cross exchange rate of two foreign currencies at a certain time, according to the market**, and the performance of the underlying on the day on a daily basis. Determines the number of days that the pegged underlying is above a boundary level (e.g. a certain exchange rate value).

n is the actual number of days during the observation period when the underlying is greater than the boundary level, m is the observation period of 88 days, and the final real rate of return is equal to.

The so-called structured deposit refers to a deposit product in which investors deposit legally held RMB or foreign currency funds into banks, and banks embed financial derivatives on the basis of ordinary deposits, so that depositors can obtain higher expected interest under the condition of assuming certain risks. To put it simply, the investment funds are structured, that is, the funds used by investors for lending are divided into two parts, most of which are deposited as bank deposits; A small part is used to invest in financial derivatives, such as indices, exchange rates, **, etc. This makes the yield of structured deposits not only linked to the deposit rate, but also to the trend of these assets** over the observation period.

Structured deposits refer to financial products with certain risks in which investors legally hold RMB or foreign currency funds in banks, which are linked to interest rates, exchange rates, commodities, credits, indices and other financial or non-financial subject matter by embedding financial derivatives (including but not limited to forwards, swaps, options or **) on the basis of ordinary deposits.

In fact, structured deposits are not ordinary deposits, and they are also different from bank wealth management. Structured deposits embed financial derivatives on the basis of deposits, and by linking them to fluctuations in interest rates, exchange rates, indices, etc., depositors can obtain higher returns on the basis of assuming certain risks.

History

In the early stage of the development of structured deposits, banks could only provide this product for large foreign exchange deposits worth more than US$3 million. Since the beginning of 2004, small foreign exchange structured deposits have become popular in China, and they have different names, such as Bank of China's "Huibao", ICBC's "Hui Caibao", and CCB's "Huideli" all belong to foreign exchange structured deposits.

Judging from the launch of this kind of products by various banks, it is characterized by a longer deposit period, as short as one year (determined by the bank) and as long as 3 to 5 years.

Due to the higher returns several times higher than the deposits in the same period, foreign exchange structured deposits are naturally favored and sought after by investors in the case of narrow foreign exchange investment channels, high risks and low returns.

Explanation of terms:

Structured deposits are financial products with certain risks in which investors legally hold RMB or foreign currency funds in banks, and banks embed financial derivatives on the basis of ordinary deposits, so as to link investors' returns with interest rates, exchange rates, commodities, credit, indices and other financial or non-financial subject matter.

Answer: Hello, explain that structured deposit refers to a business product that embeds a certain financial derivative instrument (mainly various options) on the basis of ordinary foreign exchange deposits, and is linked to the fluctuation of interest rates, exchange rates, indexes, etc., or to the credit situation of an entity, so that depositors can obtain higher returns on the basis of certain risks. It is a combination of fixed income products and options in the form of a product transaction. Through the combination of options and fixed income products, the investment returns of structured products are linked to the fluctuations of the underlying assets**, which can achieve the function of protecting the principal or obtaining a higher return on investment to a certain extent.

Dear, if you think my answer solves the problem for you, please click "like" and "comment" thank you. Do you have any questions about your efforts that are important to us, and your recognition is the driving force for my progress? If not, you can click on the avatar to follow me, and if you have any questions in the future, please feel free to consult me on the homepage. Have a great day.

Structured deposits refer to deposit products in which investors deposit legally held RMB or foreign currency funds into banks, and banks embed financial derivatives on the basis of ordinary deposits, so that depositors can obtain higher expected interest under the condition of assuming certain risks.

Structured deposits generally divide the funds used by investors to lend into two parts, most of which are stored in the form of bank deposits; A small part is used to invest in financial derivatives, such as indices, exchange rates, **, etc. Therefore, the rate of return of structured deposits is not only linked to the deposit interest rate, but also to the income of the financial derivatives invested.

What does Structured Deposit mean? Is it a wealth management product or a deposit?

The bank's structured deposit is a new type of deposit product that combines the traditional deposit business with financial derivatives, which has a higher yield than the traditional deposit, and most of the funds of the bank's structured deposit are invested in bank deposits, so the security of the funds is very high, but it should be reminded that not all banks' structured deposits are principal-protected, so you must see clearly when buying.

Extended Resources: Advantages of Structured Deposits

1. Strong robustness

As mentioned above, if you purchase structured deposits with a reasonable investment ratio, you can achieve the protection of the principal. At present, most of the structured deposits implemented by banks are allocated to the capital protection ratio, so its stability is very high.

2. High yield

Structured deposits are floating returns, and under the investment control of banks, derivative wealth management products generally have low risk. Its rate of return is not lower than that of the bank's wealth management products, and generally speaking, the annual rate of return of structured deposits can reach between 4% and 5%. And the return is much higher than that of ordinary fixed deposits.

3. High flexibility

Structured deposits are more flexible than ordinary deposits and wealth management products, and ordinary fixed deposits will lock in funds, and early withdrawal will lead to a loss of interest. Most wealth management products will have a fundraising period and a redemption period. The deposit portion of structured deposits has a same-day interest rate, and their relative maturity is relatively short, mostly within a few months or a year, so it is very friendly to short-term investors and convenient for fund management.

In the past, the rigid payment of bank wealth management products was an unspoken rule, that is to say, the real investment income of the bank wealth management you bought may not reach as high as initially advertised or even a loss, and the bank paid for the customer out of its own pocket.

After the promulgation of the new regulations on asset management, banks are not allowed to carry out on-balance sheet asset management business, which means that ordinary people have to bear their own risks when buying bank wealth management products, so structured deposits have become a substitute for capital-guaranteed wealth management.

Can I buy structured deposits?

Structured deposits are not yet mature, and some of them are principal-protected, while others are not. For example, in the above example, if a 100W structured deposit is only taken out as a deposit, 3% of the interest, the sum of principal and interest at maturity is, and the remaining 5W may be lost when investing in financial derivatives, then it will lose money at maturity, so some structured deposits also have the risk of principal loss.

If you want to buy a structured deposit, you need to read the specific product description and understand the design of the product. In addition, since some structured deposits are partially invested in financial derivatives, and some banks are not qualified for derivatives trading, there are certain legal risks behind this.

For the derivatives part of structured deposits, the risk is actually relatively high, and the transaction is very complex, and it is difficult for ordinary investors to identify the risk. Just like the Bank of China ** treasure incident some time ago, although in the end it is said that some investors got back the minimum principal of 20%, there are still many debates about product design loopholes and whether investors have such a high-risk tolerance.

Therefore, for ordinary investors, it is not recommended to participate in this kind of investment varieties that are buried in mines. If you pursue low risk, you can choose currency**, short-term debt**, or medium- and long-term pure debt** instead.

Or, according to the logic of this capital preservation strategy, you can make a similar capital preservation portfolio, such as taking out 98w to buy pure bonds, with an annualized return of between 3-5%, and another 2w to buy some excellent ****, so that the overall investment income is likely to exceed that of bank financial management.