Fixed Deposit Wealth Management FAQ
Q: What is a one-year term deposit and how is interest calculated?
A: A one-year term deposit is when you lock your funds in the bank for a year. The basic interest calculation formula is: principal x effective annual interest rate. If you do not use it halfway, you will get the full principal and interest when it expires.
Q: What happens if I withdraw my time deposit in advance?
A: If early withdrawal is not due, in most cases the portion withdrawn will be calculated as interest at the demand deposit listing rate, which will result in a significant reduction in interest income.
Q: What is the difference between ordinary time deposits and large certificates of deposit?
A: Large deposit certificates usually have an initial deposit threshold (usually from 200,000 or 500,000). Compared with ordinary time deposits in the same period, the execution interest rate of large deposit certificates is higher, and some large deposit certificates support transfer, and the liquidity is better.