Yu Fenghui: How Can People Earn Money Under The Interest Rate Cut?

The first interest rate cut by the central bank in March 1st has been implemented since March 1st, and the upper limit of the floating interest rate of the deposit interest rate has expanded from 1.2 times to 1.3 times.

This time the central bank has cut interest rates at the same time, "extending the upper limit of the floating interest rate from 1.2 times to 1.3 times" is a bright spot. This indicates that the central bank is continuing to play a regulatory role in controlling the interest rate on the macro economy while the other side is pushing ahead with the marketization of interest rates. In fact, it is weakening the power of controlling interest rate control measures.

One year deposit benchmark interest rate adjusted for 2.5%, up 1.3 times after 3.25%, 3.25% percentage points before the adjustment of 2.75% of the benchmark interest rate 3.3% times, only a 0.05 percentage point difference. If commercial banks float to the top, the nominal interest rate cut this time by 0.25 percentage points is actually only 0.05 percentage points.

Will commercial banks float to the top? The answer is yes.

After the adjustment of interest rates began in March 1st, Zhejiang Merchants Bank, Hengfeng bank, Nanjing bank and Jiangsu bank took the lead in putting all the deposit interest rates on the basis of the central bank's benchmark interest rate, which rose 30%. Among them, the 5 year deposit rate of Zhejiang Merchants Bank was 5.4% higher. The five major trades in the establishment of diplomatic relations between the workers and peasants have gone up, but have not yet reached the top.

However, I believe that commercial banks that do not go up to the top will rise to the top sooner or later. Because the reason why the big banks did not go up to the top is mainly that their internal funds are relatively prosperous, and a certain period of observation is safe. However, the competition for low-cost capital deposits is fierce. In the case of deposit interest rate differentiation, depositors will have three goods and which interest rate will remain high. This will inevitably lead to a large loss of bank deposits without going up or up. Before long, these banks will be unable to withstand the pressure of the loss of deposits and will surely float interest rates to the top.

From a business perspective, the central bank is Deposit and loan interest rates Symmetrical interest reduction. In fact, the central bank "heart" understand: nominal symmetry is to reduce interest rates, in fact, it is not right. The central bank expects that commercial banks will make full use of the authority of floating interest rates in the space to float interest rates, which will in fact form an asymmetric interest rate cut.

Fundamentally speaking, the lending rate has been liberalized. The central bank's interest rate reduction is not mandatory for commercial banks. It is only a guiding nature. Generally speaking, the Chinese style of controlling interest rate is rapidly weakening and losing effectiveness.

Against this background, commercial banks absorb funds in order to absorb funds continuously and in a way that sells financial products that are far higher than deposit rates. The central bank has given the interest rate to the top. There is no reason why it should not be fully used. It is only a matter of time for commercial banks to float the adjusted benchmark interest rate 1.3 times.

The central bank has cut interest rates two times in three months, and a comprehensive reduction has marked the arrival of a completely loose monetary policy. In the future, interest rates will enter a downward channel and cycle. So, as a common people how to manage money?

A strong investor with strong financial strength and strong risk tolerance, a radical investor with certain experience in the stock market can directly invest in some steady, growing and 100 year old businesses. Listed company Stocks, or a certain amount of equity funds. Investors with more courage can consider investing in high-yield financing products of their own familiar, safe and large Internet P2P companies.

Prudent investors are equipped with some guaranteed financial products. Including banks financial products Trust products, insurance products and so on. In the interest rate cut cycle, products with a period of 1 years can be selected to lock in the proceeds in advance. The expected annual yield of such products in the market is around 5%, and the purchase generally needs 50 thousand yuan starting point. Customers with large capital can choose two years trust products as much as possible, with a profit of 7.5%-8.0% and a half year interest payment.

This is particularly focused on Internet financial products, especially monetary funds, such as balance treasure. The main characteristic is that the rate of return is much higher than the deposit interest rate, most of which are above 4% of the annual rate of return. The biggest feature is liquidity and redemption at anytime and anywhere. This is unmatched by other financial products. For example, the balance of treasure is not only higher than the deposit interest rate, but more importantly, it can buy and redeem handheld mobile phones anytime, anywhere, all the time, and it is well prepared for profitability, liquidity and safety. Why not?

From the perspective of security investment and financial management, the financial products such as bank, financial products, Ali, Baidu, Tencent, Lu Jin and other large companies launched the Internet financial management products, and so on, the security is not a problem. At best, the risk point of financial products is that the rate of return can not reach the overdue period.

If the field of vision is wider, gold is at the bottom, so we can consider appropriate investment.

Foreign exchange also has larger investment operation space. The US dollar appreciation trend is difficult to change in the short term. The Australian dollar and other currencies are relatively strong relative to the renminbi. They all have investment operation space.