Which products can protect the capital and income？ Structured deposits and insurance products linked to foreign exchange are favored ｜ golden week observation

Our reporter (chinatimes.net.cn) Lu Mengxue Ran Xuedong reports from Beijing.

"The capital preservation products of this interest rate are basically not available in banks, and now time deposits and government bonds can’t reach this interest rate." On September 30th, the reporter of China Times came to China Everbright Bank, and Xia Lu (pseudonym), the account manager of the bank, recommended an insurance wealth management product with compound interest of 3.5% to the reporter.

Recently, the reporter of China Times visited a number of banks to consult low-risk products with guaranteed capital and interest, and all of them were recommended for insurance financing without exception. However, it should be noted that, compared with ordinary deposits, such products have a certain "lock-up period", and only after the "lock-up period" can they be withdrawn can they "protect their capital" and obtain certain income.

Of course, structured deposits are also a good choice if customers prefer short-term guaranteed financial products. The reporter of China Times noticed that many bank account managers also actively introduced structured deposits to reporters, and at present, many structured deposits of many banks are linked to foreign exchange, with a yield of 1%-4% and an investment period of no more than 6 months.

In an interview with the reporter of China Times, relevant analysts pointed out that under the market environment of declining deposit interest rate, customers have limited choice of banking products, and recently, due to the increased volatility of the financial market, the overall performance of bank wealth management products is not ideal, which makes the attractiveness of insurance wealth management products and structured deposits stand out. Generally speaking, the reason for the launch of such products is that banks hope to extend the marketing advantages of other business lines to the wealth management product line.

A variety of structured deposits linked to foreign exchange

"Now that the deposit interest rate has dropped as a whole, it is really uneconomical to deposit money. You can look at our structured wealth management products, which guarantee the capital and interest, and the interest rate is higher." On October 2nd, a reporter from China Times came to a branch in Xicheng District, a city commercial bank in Beijing to consult about low-risk financial management, and the account manager of the bank introduced it to the reporter.

The reporter of China Times noticed that the bank has eight structured wealth management products, all of which were sold on September 28th, and are linked to the spot exchange rate of the euro against the US dollar. The purchase starts at 10,000 yuan, and the investment period is between 37 days and 185 days. The interest will start on October 10th.

In terms of interest, the expected yield of the above structured wealth management products is between 1.10% and 3.02%, which is divided into two grades. The bank’s three-month and six-month personal time deposit yields are 1.3% and 1.55% respectively, and the five-year fixed deposit annual interest rate is only 2.7%. In contrast, the structured deposit yield has obvious advantages.

The account manager of a branch of China Everbright Bank in Beijing also recommended structured deposits to the reporter of China Times.

China Everbright Bank has 8 structured deposit products, all of which are linked to the exchange rate of US dollars against Canadian dollars. They will be raised on September 28th and 29th, and the investment period is between 18 days and 6 months. The starting purchase price includes 2,000 yuan, 10,000 yuan and 50,000 yuan, and the interest will start on October 3rd, 6th and 12th.

In terms of yield, the expected annualized yield of structured deposits of China Everbright Bank is divided into three grades, ranging from 0.80% to 3.28%. Compared with the time deposit yield of China Everbright Bank, the bank’s three-month and six-month deposit rates are 1.30% and 1.55%, the five-year fixed deposit rate is 2.70%, and the yield of large deposit certificates with a three-year deposit of 200,000 yuan can reach 3.3% (sold out).

In addition, a number of banks have also introduced structured deposit products linked to foreign currency exchange rates. For example, Bank of Communications has a structured deposit of "steadily increasing interest rates" linked to the exchange rate of the euro against the US dollar; CITIC Bank has the exchange rate of Leying Zhixin linked to RMB structured deposits and linked to the spot exchange rate of Euro against the US dollar; Industrial Bank has RMB C structured deposits linked to the euro bearish, and linked to the spot exchange rate of the euro against the US dollar.

It is worth noting that the expected rate of return of structured deposits is not fixed, and it is generally divided into several grades.

Taking a structured deposit of the above-mentioned city commercial bank as an example, the calculation method of the expected yield of the product described in the product manual is as follows: if the observed price of the linked target is higher than or equal to the barrier price on the observation day, the expected annualized yield of the product is 2.90%; If the observed price of the linked target is lower than the barrier price on the observation day, the expected annualized yield of the product at maturity is 1.10%.

The opening price refers to the fixing price of the linked target on the value date, the observation price refers to the fixing price of the linked target on the observation date, and the barrier price is -0.0530.

Insurance financing is favored.

"If you need a product with long-term investment and guaranteed interest, you can consider insurance." After the reporter of China Times expressed his concern about the short investment period of the above structured deposits, Xia Lu recommended.

After the reporter showed his interest in this kind of products, Xia Lu introduced the insurance products with one-off payment and three-,five-and ten-year payment periods.

"At present, only time deposits and government bonds, as well as the increase of insurance companies’ whole life insurance, can guarantee the principal and income. The capital preservation products with compound interest of 3.5% are basically not available in banks, and now time deposits and government bonds can’t reach this interest rate. " Xia Lu said.

It is understood that the increase in whole life insurance has a fixed rate of return every year, and the insured amount increases with compound interest. However, there is a certain "lock-in period". According to the benefit demonstration table made by Xia Lu, if the customer chooses a product that pays 50,000 yuan every year for three consecutive years, the compound interest will increase year by year according to 3.5% from the fifth year, and the interest will be 45,848 yuan in the 10th year and 126,178 yuan in the 20th year.

"But it can’t be taken out in the first five years, which belongs to the payment period, otherwise there will be a certain loss of principal." Xia Lu reminded that taking out in the first five years is equivalent to surrendering the insurance. After paying 50,000 yuan in the first year, it can only be refunded by 27,116 yuan. After paying 100,000 yuan in the second year, it can only be refunded by 72,516 yuan. After paying 150,000 yuan in the third year, it can only be withdrawn by 140,064 yuan, which is equivalent to losses of 22,884 yuan, 27,484 yuan and 9,936 yuan respectively.

Meet customers’ low-risk needs

After the state-owned banks lowered the deposit interest rate on September 15th, many stock banks, city commercial banks and rural commercial banks successively lowered the deposit interest rate.

On October 1st, Yang Haiping, a researcher at the Securities and Futures Research Institute of the Central University of Finance and Economics, said in an interview with China Times that in the current market environment, insurance wealth management products and structured deposits are more attractive. Banks also recommend these two types of products in order to safeguard customers and improve their return on investment.

The reason why structured deposits and insurance wealth management are favored, Chen Jia, an independent international strategy researcher, believes that from the customer’s point of view, it is mainly because its expected income is higher than other wealth management products in the same period, and the risk is relatively low in wealth management products, and the liquidity is relatively high.

Since the beginning of this year, the volatility of the financial market has increased, which has also increased the volatility of the net value of many bank wealth management products. Previously, a large area of bank wealth management products broke the net. Chen Jia believes that the advantages of structured deposits and insurance wealth management have been further amplified under the current downward cycle of domestic benchmark interest rates and the general decline in the return on large-scale risky assets.

For structured deposit products linked to foreign exchange, Chen Jia believes that the strong cycle of the US dollar index is likely to continue as the Fed continues to raise interest rates in the short term, so the yield of assets linked to US dollars is expected to increase. However, he also reminded that considering the stability of RMB exchange market and the strengthening of cross-border capital supervision, the yield growth of such products will gradually slow down, and it is recommended that small and medium-sized investors make short-term allocation. In particular, under the circumstances that the yield of US debt is high and the risk increases suddenly, and the external environment is complex and changeable, it is not recommended to do a lot of long-term allocation at this moment.

"As far as insurance wealth management products are concerned, due to the differences in product design and marketing methods, the nominal rate of return of such products is generally higher than that of deposit wealth management and national debt products. However, it should be noted that on the one hand, the supervision of such products has become stricter and the market has changed rapidly; On the other hand, the existence of the lock-up period makes the calculation method of the real rate of return of products quite different from that of general bank wealth management products, which generally has high requirements for investors’ research ability. " Chen Jia said.

"From the perspective of business structure, both foreign exchange-linked structured deposits and insurance wealth management belong to the banking sector, because banks hope to extend the marketing advantages of other business lines to the wealth management product line." Chen Jia concluded.

Editor in Charge: Meng Junlian Editor in Chief: Zhang Zhiwei