Read the first book to understand investment and financial management

Chapter 10 Savings and financial management, make a good reserve, and relieve worries about the future (1)
Common sense for getting started with savings

Savings deposits are a kind of deposit activity in which urban and rural residents deposit temporarily unused or surplus currency income in banks or other financial institutions.

Many people will say that they know "savings" very well.When we were young, we would put pocket money and New Year's money in the piggy bank, and after work, we would put our wages in the bank.However, saving does not mean financial management. People who know how to make money, spend money, and manage money can be regarded as "high financial quotient."Making good use of savings is to use savings as an investment method to make your money more abundant and your quality of life higher.

Although there are a variety of investment tools, the current situation in our country is that residents prefer to save.The reasons are as follows: First, there is no perfect social security system, and individuals lack a sense of security. People always feel that it is more reasonable to put real money in the bank; second, traditional concepts and living habits. Most residents do not have the concept of family financial management.Many families believe that salary or business income is the source of family income, and more money should be deposited in the bank.Others think that a lot of money can be invested, but most of them think that investment means buying a house or doing business.

With the changes in the economic environment, the traditional single financial management method of thrift and savings can no longer meet the needs of ordinary people, and the scope of financial management tools has expanded rapidly.The function of cooperating with life planning and financial management is not limited to ensuring a safe and worry-free life, but to pursue higher material and spiritual satisfaction. It is a kind of planning for one's life and career, and an attitude towards life.Therefore, for savings, you should also have a reasonable plan and method to ensure that your wealth will not shrink.

There are many forms of savings deposits, which are mainly divided into the following types.

[-]. Savings

Current savings is a kind of savings that has no deposit period constraints, can be withdrawn at any time, can be deposited at any time, and has no limit on the amount of deposits and withdrawals.With the bank card or passbook and the reserved password, cash can be deposited and withdrawn at any time through the counter or through the bank's self-service equipment during the bank's business hours.It has the characteristics of universal deposit and withdrawal, flexible funds, and convenient payment.

[-]. Regular savings

Regular savings is a kind of savings that has an agreed deposit period, deposits the principal once or in installments on a regular basis, and withdraws the principal or interest one or more times.The longer the deposit term, the higher the interest rate.

The time deposits of major banks in my country mainly include: lump sum time deposits, zero deposit and lump sum time deposits, principal deposit and interest collection time deposits, time deposits, call deposits, education savings, and communication deposits.

[-]. Education Savings

Education savings refers to the special savings that individuals open an account in a designated bank according to the relevant state regulations, deposit a specified amount of funds, and use it for educational purposes.The education savings system adopts the real-name system. When opening an account, depositors must hold their own (student) account book or ID card and go to the bank to open a deposit account in the name of the depositor (student).When withdrawal is due, the depositor needs to withdraw the principal and interest at one time with the passbook and relevant certificates.

Other types of savings include award-winning savings, value-preserved savings, postal savings, payroll savings and housing savings.

Savings are the foundation of any financial plan and the foundation of one's self-reliance.It comes from planning and frugality, and it is the basic embodiment of a person's self-reliance and financial management ability.A person who can't even save money shows that he lacks the ability to control himself, and it is impossible to expect him to succeed in wealth management.

Understanding the relevant knowledge of saving is the first step to saving well.This can reduce your setbacks and troubles when opening an account, and quickly and conveniently complete procedures such as account registration. It is also conducive to you knowing when saving, and choosing the type of savings that suits you in a targeted manner to obtain benefits.

Did You Know These Savings Tips?
For ordinary families, saving is still the main way of investment and financial management for working families. When participating in savings, if they can be scientifically arranged and allocated reasonably, they can obtain higher interest income.

[-]. Ladder deposit method
Ms. Wang's son is about to go to college, and she plans to pay a tuition fee in the next few years.Ms. Wang is the financial director of a company, and she will have a lot of bonus income every month, so she chose the ladder savings method.At present, her family has 10 yuan of idle funds. She reserves 1 yuan for family backup expenses, and divides the remaining 9 yuan into three shares. A certificate of deposit due in 3 years, and then use the remaining 3 yuan to open a certificate of deposit due in 1 years. After one year, the 3 yuan due will be deposited for another 2 years, and the expired 3-year period will also be transferred to the 3-year period, and so on.In this way, a certificate of deposit will expire every year, and the interest is higher than that of ordinary deposits.

If you want to get higher interest, you can adopt the ladder deposit method.The ladder deposit method can be summarized as follows: If you hold 3 yuan of funds, you can use 1 yuan to open a 1-year to 3-year time deposit certificate each. One year later, the 1 yuan due can be used to open another 1-year certificate of deposit, and so on. The certificates of deposit held after 1 years are all 1-year funds, but the maturity period is different, with a difference of 3 year in turn.This kind of savings method can keep the annual savings amount due in an equal balance. It can not only cope with the adjustment of savings interest rates, but also obtain higher interest on 3-year deposits. It can bring stable income to investors and is suitable for working families. Accumulate education funds and future marriage funds for children.

12. [-] certificate of deposit method

Both work in an advertising company and receive the same salary. Xiao Zhao and Xiao Li have very different attitudes towards savings.Every time Xiao Zhao gets his salary, he doesn't care about it; and Xiao Li has rich experience in financial management: "I have been working for 3 years, and I have insisted on saving money with the '12 certificate of deposit method' from the first month, saving 20 yuan a month, 1 I save 240 yuan a year, and now I have earned more than 30 yuan in interest income, and if I put my salary in the salary card and ignore it, the interest in three years is only 3 yuan."

Many "office workers" just withdraw money from the salary card, and let the remaining money lie in the salary card, and basically do not deal with it, which will cause a huge loss invisibly.However, if you can make good use of the 12 certificate of deposit method, you can maximize the return on funds without affecting the use of funds.

12 The certificate of deposit method is also known as the "monthly savings method", that is, a certain amount of money is deposited every month. All the certificates of deposit have the same number of years, but the maturity date is only one month apart.This method is an extension and expansion of the ladder savings method. It can not only save funds well, but also give full play to the flexibility of savings. Even if money is urgently needed, there will not be too much loss.

Of course, if you have better patience, you can also try the "24 certificates of deposit method" and "36 certificates of deposit method". The principle is exactly the same as the "12 certificates of deposit method", but the cycle of each certificate of deposit becomes 2 (3) years.Of course, the advantage of doing this is that you can get the 2 (3) year fixed deposit interest rate for each certificate of deposit, and you can get more interest, but you may also have difficulty in capital turnover when you do not complete a deposit cycle. Funding adjustments.

[-]. Rolling interest savings method

The rolling interest savings method is a perfect combination of zero deposit and lump sum withdrawal and principal deposit and interest withdrawal.The specific operation method is that if you have a deposit of 5 yuan, you can consider depositing the 5 yuan with the method of deposit and interest collection. Open a zero-deposit and lump-sum withdrawal account for monthly interest, and then withdraw the interest from the deposit and interest-withdrawal account every month and deposit it into the zero-deposit and lump-sum withdrawal account.The advantage of doing this is that you can get interest twice, that is, the interest of deposit and interest is obtained in the zero deposit and lump sum withdrawal.

This method of saving money has a disadvantage, that is, you have to go to the bank to queue up frequently.However, for the sake of obtaining high interest, it is worth running a few more times.

[-]. Skillful use of call deposit
Call deposit is a kind of deposit that does not have an agreed deposit period, and the bank must be notified in advance when withdrawing, and the withdrawal date and amount can only be withdrawn.

个人通知存款不论实际存期多长，按存款人提前通知的期限长短划分为1天通知存款和7天通知存款两个品种。1天通知存款必须提前1天通知约定支取存款，7天通知存款则必须提前7天通知约定支取存款。

For example, for stock trading, sometimes you are worried about the bad market and need to temporarily withdraw the money in the stock market, but this part of the money is withdrawn and deposited in the bank, and the interest rate is too low. At this time, you can choose to apply for a 7-day notice deposit.When the stock market is not good, it can be transferred to the bank's notice deposit account, so that the interest obtained is much higher than that of current savings.

银行通知存款不需要事先约定存期，但支取时需要提前通知银行。以1天通知存款的利率是081%、7天通知存款的利率是135%为例，两者都大大高于活期储蓄的利率036%。以7天通知存款的利率计算，会高出活期储蓄7天的利息近4倍。

Five, quarter storage method
如果持有1万元，可分存4张定期存单，以适应急需时不同的数额。即可以将1万元分为10元、20元、30元、40元4张1年期定期存单。此种存法，假如1年内需要动用20元，就只需支取20元的存单，避免了需要小数额动用“大存单”的弊端，以减少不必要的利息损失。

Although savings is the simplest investment and financial management tool, there are certain tricks to be found. For the same amount of money, different deposit methods will have different returns.Mastering the tricks and configuring them reasonably can maximize the return on deposits.

Calculation method of savings deposit interest

Savers are most concerned about how to get more interest through savings, and different savings methods have different interest calculation methods.So, what are the current methods of calculating interest on bank deposits?
[-]. Basic formula for calculating savings deposit interest
Interest refers to the part of the funds that the bank pays to the depositors in excess of the principal according to the interest rate stipulated by the state after the depositor deposits a certain period of time and a certain amount of deposits in the bank.Basic formula for interest calculation:

Interest = principal x deposit period x interest rate

[-]. Basic regulations on interest calculation

(1) The starting point for interest calculation of deposits is yuan, and no interest is calculated for cents below yuan.

(2) The amount of interest is calculated to the centimeter, calculated to the cent, and rounded below the cent.When calculating interest in sections, the interest of each section should be reserved to the centimeter first (it will not be retained below the centimeter), and the total interest obtained by adding each section is counted to the centimeter, and then rounded up to the centimeter below the centimeter.The amount of interest is calculated to the cent, and the mantissa below the cent is rounded up.

(3) Except for current deposits, which are incorporated into the principal when the annual interest is settled, all kinds of savings deposits will not calculate compound interest no matter how long the deposit period is.

(4) Overdue withdrawal of the part of the time savings deposit that exceeds the original deposit period, in addition to the agreed automatic transfer, the interest will be calculated and paid according to the current savings deposit interest rate announced on the date of withdrawal.

(5) If the interest rate of time savings deposit is adjusted during the deposit period, the interest will still be calculated according to the corresponding time savings deposit interest rate announced on the date of opening the deposit certificate.

(6) If the interest rate of demand savings deposit is adjusted during the deposit period, the interest shall be calculated according to the interest rate of demand savings deposit announced on the date of interest settlement.

(7) Calculation of deposit period: On the premise that the principal and interest rate are determined, the exact deposit period must be known in order to calculate interest.The calculation of the deposit period follows a rule of "counting the head and not the tail".

Interest is calculated from the day of deposit to the day before withdrawal.That is, interest shall be accrued on the day of deposit, and no interest shall be accrued on the day of withdrawal.Each month is calculated as 1 days; regardless of the big month, small month, normal month, or leap month, the deposit period is calculated as 30 days per month.If the due date falls on a holiday and the savings bank is closed, it can be withdrawn one day before the holiday, and the interest will be calculated on the due date, and the procedures will be handled as early withdrawal.

但在现实生活中，储户的实际存期很多不是整年整月的，一般都带有零头天数，这里介绍一种简便易行的方法，可以迅速准确地算出存期，即采用以支取日的年、月、日分别减去存入日的年、月、日，其差数为实存天数。例如：支取日：28年6月20日－存入日：25年3月11日=3年零3个月9天。按储蓄计息对于存期天数的规定，换算天数为：3×360（天）＋3×30（天）＋9。

If the day is not enough to subtract, you can withdraw "month" minus "1" to convert it into 30 days and add it to the withdrawal date, and then subtract each other, and so on.This method is suitable not only for the deposit time is the same year, but also for the deposit and withdrawal time across the year, which is very practical.

[-]. Interest Calculation Method for Savings Deposits
The interest calculation method of regular savings with zero deposits and lump sum withdrawals is generally the "monthly accumulation interest calculation" method.

Its formula is:

Interest = monthly deposit amount x cumulative monthly product x monthly interest rate

among them:

Cumulative monthly accumulation = (number of deposits + 1) ÷ 2 x times of deposits
据此推算1年期的累计月积数为（12＋1）÷2×12＝78，以此类推，3年期、5年期的累计月积数分别为666和1830。

[-]. Calculation method of interest on lump-sum and zero-withdrawal savings deposits
The lump-sum deposit and zero withdrawal is the opposite of zero deposit and lump sum withdrawal. The savings balance is arranged in the opposite direction from large to small. The calculation method of interest is the same as that of zero deposit and lump sum withdrawal. The formula for calculating interest is:
Each withdrawal of principal = principal ÷ agreed number of withdrawals

Interest = [(last balance + first deposit) × number of deposits] / 2 × monthly interest rate

[-]. Interest Calculation Method for Savings Deposits
Deposit and interest withdrawal For the amount of interest withdrawn each time, the total amount of interest payable is first calculated according to the principal deposited, the deposit period and the prescribed interest rate, and then the average amount of interest paid each time is calculated according to the number of times the depositor agrees to withdraw interest.The interest calculation for overdue withdrawal and early withdrawal is the same as lump sum withdrawal. In case of early withdrawal, the interest paid to the depositor in installments shall be deducted, and if it is insufficient, it shall be deducted from the principal.Interest calculation formula:
The amount of interest withdrawn each time = (principal × deposit period × interest rate) ÷ times of interest withdrawal
[-]. Calculation method of interest on fixed-hub and two-day convenience savings deposits
Fixed-life savings deposits with a deposit period of less than 3 months shall be calculated as current deposits; those with a deposit period of more than 3 months shall be calculated at 1% of the interest rate of lump sum time deposits of the same level; 1 year), no matter how long the deposit period is, the entire deposit period will be calculated at 1% off the [-]-year deposit rate on the withdrawal date.Its formula:

Interest = principal x deposit period x interest rate x 60%
[-]. Interest Calculation Method for Personal Call Deposit

Personal call deposit is a one-time deposit, one-time or installment withdrawal. The 1-day call deposit needs to be notified 1 day in advance, and the interest is calculated according to the interest rate of the 1-day call deposit on the withdrawal date. The 7-day call deposit needs to be notified 7 days in advance, and the interest is calculated according to the interest rate of the 7-day call deposit on the withdrawal date. If the deposit is required to be withdrawn, the interest shall be calculated according to the current interest rate, and the interest shall be settled with the principal.Basic calculation formula:
Interest payable = principal x deposit period x corresponding interest rate

Mastering the calculation method of savings deposit interest can help you understand the amount of your total deposit income in the near future and within a year, understand the changes in the amount of deposits, facilitate withdrawals, and make budgets and plans.

Skillfully avoid and reduce deposit principal loss

The loss of deposit principal is mainly due to serious inflation. If the deposit interest rate is lower than the inflation rate, negative interest rates will appear, and the actual income of deposits is ≤ 0. At this time, if there is no maintenance and subsidy, the deposit principal will decrease. A loss occurs.Depositors can adopt different measures according to their actual situation to reduce losses.

[-]. Without special circumstances, do not easily withdraw time deposits
If there is no special need or a sure high-yield investment opportunity, do not easily withdraw the time deposit that has been deposited in the bank for a period of time (especially more than half of the deposit period).Because, even when the price rises rapidly and the bank deposit interest rate is lower than the price increase rate and there is a negative interest rate, bank deposits still calculate interest at the coupon rate.If you don't deposit in the bank, don't buy government bonds or make other investments, and keep your cash at home, you won't even have nominal interest (the deposit interest paid by the bank), and your losses will be even greater.

[-]. When encountering investment opportunities with higher returns than fixed deposits, you can weigh them

If after depositing time deposits for a period of time, you encounter investment opportunities with higher returns than time deposits, such as the issuance of government bonds or other bonds, etc. At this time, depositors can continue to hold time deposits and change deposits into other investments. Calculate and compare the actual returns among them, and choose the investment method with higher overall returns.

For example, when the 1995-year certificate treasury bond was issued in 3, because the interest rate of the treasury bond was 14%, which was higher than the interest rate of the 5-year bank deposit at that time, some investors took out the 3-year or 5-year bond that had been deposited in the bank. 1995-year term deposits to purchase 3 3-year treasury bonds.For those depositors whose deposit period is less than half a year, the result of doing so is that the gains outweigh the losses.But for those depositors whose certificates of deposit are about to mature, the losses will outweigh the gains if they use their early withdrawal deposits to buy government bonds.Because although the interest rates of 5-year and 3-year time deposits are lower than those of 1996-year treasury bonds, until July 7, the value-preservation subsidy rate remained above 5%, and the interest rate of time deposits and value-preservation subsidy rates were equal. Plus, its yield is still well above the 1996% yield on the 3 14-year Treasury note.Therefore, for those depositors whose time deposit certificates are about to expire (or whose deposit period has expired for one year), if they blindly withdraw their time deposits in advance without careful calculation and invest them in other investments, the actual result will often outweigh the gains.

[-]. Rationally choose a more suitable investment method for matured time deposits
For the time deposits that have matured, it should be comprehensively based on the level and trend of interest rates, the comparison of the interest yield of deposits with the yields of other investment methods, and the safety, convenience, and flexibility of savings deposits and other investment methods. Compare and re-select based on each person's actual situation (such as the nature of work, the degree of flexibility in controlling investment time, tolerance for risks, etc.).

[-]. When the interest rate is high, it is still a good choice to choose regular storage
(End of this chapter)