Core Insights - The article discusses the challenges faced by individuals with fixed-term deposits due to declining bank deposit interest rates and suggests strategies for managing savings effectively [1][3]. Group 1: Liquidity Management - Liquidity has become a critical concern as unexpected financial needs can lead to significant losses when withdrawing fixed-term deposits early. For example, withdrawing a 500,000 yuan deposit at a 2.5% interest rate after two years could result in a loss of 22,000 yuan in interest, equating to an 88% reduction in expected earnings [3]. - A recommended strategy is the laddering approach, where funds are divided into several portions with different maturity periods to ensure both higher interest rates and liquidity [3]. Group 2: Yield Optimization - Since early 2024, major banks have reduced fixed-term deposit rates, with three-year rates dropping from approximately 3.5% to 2.4% and five-year rates from around 4% to 2.8%. This trend is expected to continue into 2025 [4][5]. - Alternative investment options include: - **Government Bonds**: Three-year bonds yield about 2.6% and five-year bonds yield around 2.8%, which are higher than current bank deposit rates [4]. - **Large Time Deposits**: These typically require a minimum of 200,000 yuan and offer rates 0.2% to 0.5% higher than standard deposits, with some three-year deposits reaching 2.8% [5]. - **Stable Financial Products**: These bank products yield between 3% and 4% annually, presenting a low-risk option [6]. - **Money Market Funds**: While offering lower yields, they provide excellent liquidity [7]. - **Structured Deposits**: These have variable returns based on linked assets but maintain a capital protection feature [8]. Group 3: Safety Considerations - Safety remains the top priority when selecting financial products. It is advised to choose reputable financial institutions to avoid high-risk investments that promise high returns [9]. - Preference should be given to large state-owned and joint-stock banks due to their strong financial stability and risk management capabilities. Caution is advised with smaller banks, despite potentially higher rates [9]. - The deposit insurance system provides basic protection, covering up to 500,000 yuan for individual depositors in the same bank. Therefore, deposits exceeding this amount should be diversified across different banks to ensure coverage [9]. Group 4: Ongoing Management - Continuous monitoring of personal financial strategies is essential, including awareness of new financial scams and policy changes affecting the deposit market. Regular reviews of deposit configurations should align with individual age and financial circumstances [13].