Bank Deposits: What Is The Most Cost-Effective?

It is not worthwhile to save money only for convenience.

Some people simply deposit thousands of dollars or even tens of thousands of dollars in cash only for the convenience of withdrawal.

Current demand deposits

But it doesn't mean that the longer the deposit is, the more cost-effective it is.

In order to earn more interest, many people have concentrated their large deposits on the three and five years. Instead of carefully considering their expected time of use, they have blindly kept all the remaining money growing. If there is an urgent need to use money to handle the withdrawal in advance, the phenomenon of "the longer the deposit period and the more loss of interest" appears.

In view of this situation, the bank stipulates that the portion of the advance withdrawals is calculated according to the current interest rate, and is not calculated at the original interest rate.

Therefore, individuals should choose the duration and type of deposits according to their own circumstances.

From the current deposit interest rate, time deposits should be chosen in the short term.

On the one hand, the length of the deposit has little effect on interest rates. The gap between the one-year deposit interest rate and the five year deposit interest rate is only 0.675 per month.

On the other hand, the deposit rate is the lowest in history, and the interest rate is down again. If the interest rate rises in the future, if we choose long-term deposits now, we can not enjoy higher interest rates at a time when interest rates are high.

Short term deposits are highly mobile and can be re deposited immediately after maturity.

The method of saving money by snowball is more cost-effective.

In terms of specific operation, we should adopt an ingenious way.

You can deposit the remaining money in your home every month for a year.

A year later, there were 12 certificates of deposit.

Thus, no matter which month the money is spent urgently, the deposit that expires in the month can be taken out.

If you do not need to spend money, you can deposit the expired deposits together with interest and the remaining money on hand for one year.

This "snowball" saving method ensures that there will be no opportunity to lose money.

And now banks have launched automatic pfer service.

When saving, you should make an automatic pfer with the bank.

In doing so, on the one hand, it avoids avoiding the timely deposit of deposits after the expiration of the deposit. The loss of the overdue part is calculated according to the current interest rate; on the other hand, soon after the deposit expires, if the interest rate is lowered, it does not stipulate the automatic pfer. If the interest rate is kept again, the interest rate will be paid according to the interest rate after the interest is lowered.

If the interest rate is raised after the expiration date, it can also be removed and stored again.

How to deposit more interest?

Method 1: first, 3 consecutive 3 - year periods should be kept in succession. After the expiration, the interest rate will be renewed for 1 1 - year periods. After 10 years, the principal and interest will be 2085.45 yuan (this is three, three, three, and one storage method).

Method two: first deposit 3 year period, after the expiration, the principal and interest will be pferred to the 5 year period. After the maturity, the principal and interest will be renewed for two times, and 1 years will be regular. After 10 years, the principal and interest will be 2105.77 yuan (this is three, five, one, one storage method).

Method three: first deposit 5 year period, after the expiration, the principal and interest will be pferred to the 3 year period. After the maturity, the principal and interest will be renewed for two times, and the 1 years will be regular. After 10 years, the principal and interest will be 2105.96 yuan (this is five, three, one, one storage method).

Method four: first deposit a 8 year period. After the maturity, the principal and interest will be pferred to two 1 years regularly. After 10 years, the principal and interest will be 2108.94 yuan (this is eight, one, one storage method).

Method five: first save a 5 year period. After the maturity, the principal and interest will be renewed for 1 5 years. After 10 years, the total principal and interest will be 2155.02 yuan (this is five and five storage method).