Bank deposits plummeted Where did the money go

According to data released by the People's Bank of China, at the end of April 2021, the balance of national residents' savings deposits was one trillion yuan, one trillion yuan less than at the end of March, and the total amount of credit increased by one trillion yuan in April, so it can be inferred that some residents' deposits may be used to buy real estate, investment** or other assets, or to repay loans, resulting in a decrease in deposits.

In addition, due to the current high inflation rate in the country, inflation may also be a reason for the decrease in household savings. In order to cope with inflation, residents may choose to transfer part of their deposits into physical assets or currency** and other products to maintain and increase their value.

It should be noted that changes in residents' savings deposits are not only affected by personal investment and consumption decisions, but also by various factors such as the state's macroeconomic regulation and control, financial markets, and interest rate changes. Therefore, it is necessary to comprehensively consider various factors in order to make an accurate judgment on the specific reasons for the change of residents' deposits.

If the deposit has fallen, the reason is that the interest rate is relatively low, and I am unwilling to deposit.

In fact, in recent years, as a result of the epidemic, many people have taken out fewer loans, more people have deposited, and consumption has decreased. On the contrary, deposits have been increased, but banks have not lowered the interest rate of deposit arguments, resulting in no deposits, and the collapse may be more of a way to manage money.

Lower deposit rates will affect the yield on a bank's SMA deposits, so prepayment and investing** are options that some may consider. Here's a detailed example:

1.Prepayment.

A reduction in the deposit rate will lead to a lower yield on bank deposits, while the interest rate on loans will not usually be lowered. So, if you have a loan, prepayment may be a good option. By repaying the loan in advance, you can reduce the cost of loan interest, thereby saving a certain amount of money.

In addition, prepayment can also end the loan early, reduce the burden, and improve the personal credit rating.

For example, if you have a $100,000 loan with an annual interest rate of 5% and a remaining repayment period of 3 years. If the deposit rate is lowered, you can consider paying off the loan early, saving about $10,000 in interest expenses.

2.Investment**.

Lower deposit rates can lead to lower yields on bank deposits, and ** is often seen as a safe-haven asset that preserves and grows in value during times of economic instability. As a result, some people may consider investing** in the hope of achieving higher yields.

For example, if you have an idle fund of 100,000 yuan, you can consider investing a portion of the funds in the ** market. In times of economic instability, **** usually **, so as to obtain a certain benefit. It should be noted that the risk of the market is also relatively large, and investment needs to carefully choose the investment channel and time to avoid losses.

It's important to note that prepayment and investing** are both options that some people may consider, but not for everyone. For example, if you have a low interest rate on your loan, it may not be cost-effective to repay your loan early; If you are unfamiliar with the market, investing may carry greater risk. Therefore, you need to choose your investment method carefully according to your actual situation and risk tolerance.

In addition, lower deposit rates may also have an impact on other ways of investing. For example, the return of assets such as ** and ** may be affected, and it is necessary to carefully choose the timing and method of investment. Before making an investment decision, it is recommended that you understand the relevant investment knowledge and market conditions to avoid losses.

Bank deposit pricing faces a certain prisoner's dilemma. In particular, small and medium-sized banks with a poor deposit base did not dare to arbitrarily lower their deposit interest rates because they were worried about the outflow of deposit funds, which led to a lot of reductions in bank loan interest rates, but the decline in deposit interest rates was limited, and the interest rate spread of Bihelun Bank narrowed more and more.

For some banks with relatively high capital costs, especially small and medium-sized banks, they are under increasing pressure, affecting their ability to develop sustainably. In this context, it is of course necessary for us to optimize the deposit price fixing mechanism and promote the downward trend of deposit interest rates at the current stage.

After the adjustment of the big banks, it also left room for other banks. Other banks, such as rural commercial banks and urban commercial banks, have followed up with the reduction of interest rates, and recently village and township banks have also begun to follow up with the reduction of deposit rates. In May this year, we lowered the interest rate on corporate deposits, which pushed down the overall bank deposit rate.

In the near future, major state-owned banks will start a new round of deposit rate cuts. In any case, the adjustment of the deposit interest rate is to return to a normal and reasonable level, ensure a relatively stable and reasonable interest rate spread, and at the same time further create conditions for reducing the financing cost of the real economy.

In the medium and long term, the potential for China's economic growth is still relatively large, and the demand for funds is expected to return to a relatively normal state as long as the level of potential growth rate is not low. As the demand for funds rises, there is also the possibility that deposit rates will rise.

Household deposits fell in April. There could be a variety of reasons for 200 million, and here are some of them:

Increased consumer spending: With the gradual recovery of the economy and the gradual increase in people's consumer confidence, it may lead to an increase in people's consumer spending, which will lead to a decrease in bank deposits.

2.Increased demand for investment and financial management: With the recovery of the real estate market, some residents may transfer their funds to investment fields such as real estate, which will lead to a decrease in bank deposits.

3.Increased demand for loans: With the recovery of the economy and the development of industries, some residents may need loans to support their start-ups and development, resulting in a decrease in bank deposits.

It is important to note that a decrease in bank deposits does not necessarily mean a loss of funds or a downturn in the economy. Conversely, if residents move their funds to other areas, it may create more opportunities for economic development and innovation.

Therefore, banks, the society should actively guide and support residents' consumption, investment and innovation behaviors, and create a good environment and conditions for the sustainable development of the economy.

<> banks have lowered their fixed deposit interest rates one after another, mainly because the pressure on banks is gradually increasing under the current economic situation. The fundamental reason for the "interest rate reduction cycle" is that the central bank's funds rate falls, and the market interest rate also falls. The reduction of the central bank's benchmark interest rate has led to the direct release of market liquidity, and the reduction in the demand for funds in the market has led to a reduction in market interest rates, so that banks have to adjust the interest rate of fixed deposits when soliciting deposits.

In addition, as the entire economic environment is changing, the monetary and fiscal policies of ** have also changed, which also has an impact on the business development of financial institutions. Secondly, the reduction of the fixed deposit interest rate is also related to the bank's own business strategy. In the past few years, with the emergence of new businesses such as internet finance, the competition among banks has become more intense, and the advantage of obtaining liquidity by lowering the interest rate on fixed deposits is no longer enough.

In addition, with the changes in the market and the development of banks, the income composition of banks has also changed. Banks are no longer more profitable, as they used to be, but are improving the quality and competitiveness of customer service and financial products, so interest rates must be adjusted. Finally, the reduction of the interest rate on fixed deposits is also related to economic globalization and policy.

Today's banking industry faces challenges in terms of global demand for public goods, information technology, international regulation, and market openness. In this process, banks, as the core of the financial market, continue to develop and grow in interaction with the environment. In recent years, the global economic situation has been turbulent, and there have been many risks, challenges, and reforms.

For banks, these challenges and changes have had an impact on their business strategies and development strategies. On the whole, there are many reasons for the reduction of the fixed deposit interest rate again, in addition to the central bank's control of interest rates, it is also related to changes in the bank's business strategy and environment. Of course, the reduction of interest rates has also brought certain benefits, and has a certain role in promoting the stable and healthy development of the economy, improving market vitality and effective competition, and cultivating a healthy financial market and banking industry.