Core Insights - The article discusses the advantages and disadvantages of different bank deposit terms, specifically comparing one-year and three-year fixed deposits, emphasizing the importance of understanding personal financial needs before making a decision [1][2]. Interest Rate Comparison - Three-year deposits offer higher interest rates compared to one-year deposits, with an example showing that a three-year deposit at 2.5% yields 7,500 CNY in interest over three years, while a one-year deposit at 1.5% yields only 1,500 CNY in one year [3][6]. Liquidity Concerns - A significant drawback of three-year deposits is the lack of liquidity; if funds are needed before the term ends, the interest earned will be calculated at the much lower current account rate of approximately 0.3%, leading to substantial losses in expected interest [5][7]. Future Interest Rate Considerations - One-year deposits allow for flexibility to reinvest at potentially higher rates after one year, while three-year deposits lock in the rate for the entire term, which could be disadvantageous if market rates increase [9]. Recommendations for Deposit Choices - For funds that will not be needed for three years, a three-year deposit is advisable to maximize interest earnings [11]. - For funds that may be needed within a year, a one-year deposit or a more liquid option like a money market fund is recommended to maintain flexibility [11]. - For uncertain timelines, a "laddering" strategy is suggested, where funds are divided into different term deposits to balance interest earnings and liquidity [13][15]. Additional Options - Companies should consider large denomination time deposits for higher interest rates and more flexible withdrawal options, as well as money market funds for easily accessible funds with better returns than regular savings accounts [17].