I advise everyone to listen to this,
If you still have money to deposit in the bank,
For any amount exceeding 200,000 yuan, please don't foolishly choose a 5-year fixed deposit anymore—it's really not worth it. Since banks have fully eliminated large-denomination 5-year certificates of deposit, the current standard 5-year fixed deposits are almost identical to 3-year ones, with only a 0.05% higher interest rate. It's simply not cost-effective!
Based on a principal of 200,000, the interest rate for a 3-year fixed deposit at major state-owned banks is 2.45%, and for a 5-year fixed deposit it's only 2.50%. Over five years, the total interest earned is just 200 yuan more than a 3-year deposit, but your funds are locked in for two additional years. Smaller banks have a slightly larger gap: the highest 5-year fixed deposit rate reaches 3.05%, while the 3-year rate can go up to 2.80%. Saving 200,000 yuan for five years instead of three earns an extra 1,500 yuan, but this gain is far outweighed by the opportunity cost of having your funds tied up long-term.
Canceling 5-year large-denomination certificates of deposit by banks is an industry trend, with both state-owned major banks and joint-stock banks having ceased issuing related products. The core reason is the continuous decline of LPR, forcing banks to control long-term funding costs. Currently, 3-year large-denomination CDs with a minimum deposit of 200,000 can offer interest rates of 2.65%-2.95%, which are higher than ordinary 5-year term deposits, and can be pledged for liquidity when needed, balancing returns and flexibility.
For 200,000 in funds, there are better allocation options: 3-year savings bonds offer a 2.8% interest rate backed by national credit, guaranteeing principal and interest, with annual interest payments that can be reinvested for compounding; top-tier bank R2-rated fixed-income products have performance benchmarks of 3.0%-3.8%, carrying extremely low risk and some supporting transferability. Combining large-denomination CDs with government bonds can lock in higher returns while avoiding the liquidity constraints of single products.
The essence of saving is balancing safety, returns, and flexibility. Blindly choosing long-term term deposits will only miss better opportunities. In a low-interest-rate environment, instead of focusing on the minor interest rate difference between 5-year and 3-year products, it's better to choose the right product based on your fund usage cycle. Properly combining stable instruments like large-denomination CDs and government bonds can maximize returns while safeguarding principal.