The Agricultural Bank of China will rebate 70 for every 10,000 yuan for a large fixed term for one year. Is this normal?

This behavior is called illegal rebate solicitation, and it is prohibited by order in the bank, because once someone reports it, the bank and its employees will be punished by the China Banking and Insurance Regulatory Commission (point deduction + fine), and your misconduct Profits must also be returned. Of course, although it is illegal, employees of private banks still repeatedly use this method to attract deposits in violation of regulations.

Why is it illegal?

In June 2018, the China Banking and Insurance Regulatory Commission and the Central Bank jointly issued the "Notice on Improving the Management of Deposit Deviation Degrees of Commercial Banks". In the second article of strengthening compliance operations, it was clearly stated that commercial banks should further regulate In the act of absorbing deposits, the following means shall not be used to illegally absorb and falsely increase deposits: (1) Absorbing deposits with illegal rebates. Absorbing deposits through improper means such as returning cash or securities, giving away physical objects, etc.

As one of the four major state-owned banks, Agricultural Bank of China must operate in compliance and prudence. Even if it privately acquiesces to the behavior of its employees, it will never admit to depositing large-denomination certificates of deposit, at least publicly. Every 10,000 There is such a thing as 70 yuan rebate.

Why should employees get 70 yuan back?

To be honest, 70 yuan is a relatively high level in the industry. This is generally only given at the end of the year and the end of the quarter. With this amount, why would the bank employees do this? Because the cost is higher than the benefit it brings to him. People who work in banks should know that bank employees, especially account managers, have deposit tasks. If you fail to complete the deposit task, your performance will be deducted, you will be demoted, your salary will be reduced, and you will even be demoted. Deposits are crucial for account managers.

The minimum deposit for a large deposit certificate is 200,000 yuan. If the customer deposits 200,000 yuan at a time, according to the standard of 70 yuan, the account manager will have to pay a one-time cost of 1,400 yuan. If it is 2 million yuan, The cost of 14,000 yuan is still quite high. Under normal circumstances, the benefit brought by 2 million yuan to the account manager at Agricultural Bank of China is far less than 14,000 yuan, so it can only be done at the end of the year and the end of the quarter when the assessment time is involved (assessment time) Points determine performance and grade), and the account manager is only able to give a rebate of 17,000 when the gap between completing the task is small.

Summary

If your deposit time is at the end of the quarter or the end of the year, then the above situation is entirely possible, but if it is not the assessment time, it is just ordinary time, the customer The manager has given this interest rate level, so you have to be more careful. There is a possibility of cheating deposits, because the rebate of 70 yuan for every 10,000 yuan is obviously higher than the market level, especially at Agricultural Bank of China. A large state-owned bank.

This is very abnormal and is obviously an illegal act of collecting deposits. If you say this is a small and medium-sized bank in a certain place, such as a rural commercial bank or a rural credit cooperative, or even the Postal Savings Bank, it is very possible. But for the Agricultural Bank of China, one of the six major state-owned banks, it is not at all so desperate (giving gifts or cash back on deposits) in order to attract savings.

As a large state-owned commercial bank, Agricultural Bank of China achieved a net profit of 202.631 billion yuan in 2018, a year-on-year increase of 4.9%. In addition, the total assets of Agricultural Bank of China reached 22.61 trillion yuan, a year-on-year increase of 7.4%. Both in terms of asset size and net profit, it ranks third among the six major state-owned banks. The top two are ICBC and China Construction Bank.

It is worth mentioning that the total number of employees of Agricultural Bank of China in 2018 was 473,691, ranking first among the six major banks. The purpose of saying this is to tell everyone that Agricultural Bank of China does not have much pressure on the liability side, and it is even less likely to blatantly offer cash back on deposits. Moreover, it is a bit harsh to get 70 yuan back on deposits of 10,000 yuan.

According to Article 47 of the "Commercial Bank Law", any act of actively raising or lowering interest rates in addition to interest rates is a violation. In other words, banks are not allowed to accept deposits and issue loans by offering deposits, gifts, points activities or even cash back.

In addition, returning cash on the basis of deposit interest rates is a high-cost liability behavior, which is a test for commercial banks' operating risks.

Although the questioner did not specify the minimum investment threshold for a large-denomination certificate of deposit, it does require a minimum deposit of 200,000 yuan. By analogy, the return is 1,400 yuan? If calculated based on the three-year large deposit certificate interest rate of 3.85% for a minimum deposit of 200,000 yuan, the annualized interest is 7,700 yuan, plus 1,400 yuan, which is 9,100 yuan. In this way, the annualized interest rate is as high as 4.55%, which is equivalent to the base interest rate. The interest rate increased by 65.45%, which is higher than the maximum interest rate increase of 55% for large-denomination certificates of deposit issued by some city commercial banks or rural commercial banks. It is obviously impossible, not to mention that the Agricultural Bank of China will not do this, even the interbank interest rate guidance also does not allow it.

In short, the conditions of the questioner are not sufficient, and they do not explain whether the cash rebate of 70 yuan is a one-time event or every year? In any case, this is unreliable for large-denomination certificates of deposit products issued by Agricultural Bank of China.

Banks now rarely offer cashback methods to attract deposits, and even fewer offer cashback for large-denomination certificates of deposit. Therefore, the question mainly considers whether it is a product of the Agricultural Bank of China, or a deposit for which bank staff will negotiate with you privately to complete the task.

The Agricultural Bank of China is also a financial institution. Teacher Jin often goes to the Agricultural Bank of China to handle business. What I feel is that there are very few lobby managers, staff or tellers promoting consignment products and financial management products. Although this is true for Teacher Jin, it does not mean that there is no such thing. If it is a bank's consignment product or financial product, and then provides cashback, the subject needs to pay attention. It may not be a large certificate of deposit, but a large time deposit, and most likely it is insurance financial management.

Although the product risk coefficient of insurance financial management is low, there is no risk of principal loss. However, there are many details, which can be troublesome for ordinary investors. The one year for a large time deposit mentioned by the questioner may not be one year, but three or five years. If it is a long-term product, it cannot be redeemed after maturity. If you redeem it, you may suffer a loss of principal. In this case, you must handle it with caution, and be sure to ask clearly whether it is a large-amount fixed deposit for one year or insurance financing. If it is insurance financing, the subject must read the details clearly, whether it is one year, three years, or five years, and reasonably consider whether it is suitable.

Another possibility is that bank staff negotiate with the subject privately for cash rebate. In this case, the staff generally pay for the subsidy themselves. There may be some tasks that are not completed near the quarter or year, and then help them complete the tasks, and then give the performance bonus earned to the customer.

If it is not a large certificate of deposit but a large time deposit with a term of one year, Teacher Jin believes that you can choose low-risk, medium-low risk financial products. The current bank benchmark interest rate for one-year fixed deposits is 1.5%. Although the Agricultural Bank of China has increased it, it generally does not exceed 30%, which is 1.95%. Even if it returns 70 yuan for every 10,000 yuan, the annualized rate of return is only 2.65%. , while the annualized return rate of low-risk, medium-low-risk financial products during the same period was between 3.5% and 6%. Obviously, the latter is much more cost-effective.

Agricultural Bank of China’s large-denomination certificate of deposit is issued on a regular basis for one year, with a cash return of 70 yuan for every 10,000 yuan. This situation is indeed relatively rare.

One of the reasons is the increased interest rate burden.

Large-denomination certificate of deposit is a new deposit product with a starting point of 200,000 yuan. Because the starting point is high, interest rates will be more inclined. The interest rate of time deposits is generally 20% to 30% higher than the base interest rate, and the interest rate of large-denomination certificates of deposit can be 40% to 55% higher than the base interest rate.

Currently, the one-year time deposit benchmark interest rate is 1.5%, which can be increased by 50% to reach 2.25%. In other words, the interest on 10,000 yuan is only 225 yuan a year, and if you can get a cash back of 70 yuan.

Whether it is cash back after depositing or cash back when interest is settled, the corresponding interest rate is around 2.95%. It will indeed greatly increase the burden on banks.

Everyone thinks that the interest rate of about 3% is nothing. In fact, the average interest rate of banks is very low. According to the Agricultural Bank of China's 2018 annual report, the company currently absorbs deposits and savings of up to 16.4 trillion yuan, with an average interest rate of only 1.39%. Among them, personal deposits were 9.56 trillion, with an average interest rate of 1.43%; corporate deposits were 6.84 trillion, with an average interest rate of 1.33%.

It stands to reason that a large bank like Agricultural Bank of China would not be short of hundreds of thousands of yuan in deposits.

The second reason is illegal operations

Article 47 of the "Commercial Bank Law" stipulates:

In 2018, the China Banking and Insurance Regulatory Commission and the Central Bank jointly issued the "About Improving Commercial Banks" "Notice on Matters Related to Deposit Deviation Management" clearly prohibits the taking of relevant actions, illegal absorption and false increase of deposits. The clearest one is:

In fact, this means that the oil, umbrella, rice and noodles we have seen before are all illegal operations, just like deposit cashback. However, generally speaking, beneficiaries will not report.

Some bank branches may cash out certain cash or physical items from office expenses and welfare fees to absorb deposits. This is also something that is difficult to avoid. However, it is generally rare to publicize it publicly with slogans and banners in a big way.

Taken together, deposit cashback activities are illegal and illegal. It stands to reason that a large bank like Agricultural Bank of China is unlikely to engage in such activities.

But let’s not worry about the safety of our deposits. As long as we deposit the deposit into our own account in the name of a large-denomination certificate of deposit and do not tell anyone the relevant password, it is basically safe.

If I guessed correctly, the Agricultural Bank mentioned by the questioner should refer to a rural commercial bank or a rural credit cooperative.

I say this mainly for the following two reasons:

Cash back on large deposits is a normal phenomenon, but it is not a compliance operation. For depositors, there is no need to worry, and they can just take away 70 yuan with peace of mind; for banks, they need to be extra careful. Once someone reports to the local Banking and Insurance Regulatory Bureau, the bank needs to make a written explanation to the regulatory agency.

Not all banks will issue cash to customers' deposits. This situation is generally limited to banks that are relatively small and have difficulty absorbing deposits. For example, city commercial banks, rural credit cooperatives, rural commercial banks, rural banks, etc. It is also difficult for private banks to absorb deposits, but due to the limitations of physical branches, there are ways to directly distribute cash, but they will also directly increase deposit interest rates to attract deposit customers.

In addition to the above-mentioned smaller banks, there is also a bank that is very large, but it also provides depositors with benefits other than interest: either cash or gifts. This bank is the Postal Savings Bank.

I think the reason why the Postal Savings Bank distributes gifts or cash is mainly related to its long tradition. In the early days when the Postal Savings Bank was not a bank, it received interest subsidies from the People's Bank of China.

At that time, the deposits collected by the Postal Savings Bank were not used for loans, but were handed over directly to the People's Bank of China. The interest paid by the People's Bank to postal savings, minus the interest paid by postal savings, is the income from postal savings. Postal Savings has larger profit margins, so it will use part of its profits to attract customers in the form of gifts or cash.

Although joint-stock banks and even large state-owned banks do not distribute cash or gifts offline, they also provide subsidies to customers through online points malls. Essentially, there is no difference between the two behaviors.

From a practical point of view, the practice of banks issuing cash and gifts still exists. It can be seen that regulatory agencies turn a blind eye to banks' behavior of subsidizing deposit customers. As long as it doesn't go too far and doesn't affect the bank's liquidity operations, regulatory agencies are unwilling to take care of it.

In fact, the birth of large-denomination certificates of deposit also has a background of various banks subsidizing cash and issuing gifts. The People's Bank of China saw the chaos in the process of absorbing large deposits by various banks, so it simply designed large-denomination certificates of deposit with a base interest rate that is about 50% higher. The specific interest rate is determined by each bank. On the one hand, it reduces banks’ direct use of money to subsidize customers, and on the other hand, it also meets the high interest demands of customers with large deposits.

Summary:

Whether it is rural commercial banks giving cash, city commercial banks giving gifts, or big banks giving points, it is essentially a means of marketing customers. For savers, cash is the most economical option, because money is deposited in the bank to earn interest. As long as you make sure it's a bank, you can safely take away gifts or cash.

Let me tell you the answer first, it’s normal.

Many banks offer cash back on deposits. Although this is prohibited by the local banking regulatory bureau, other banks offer it in order to attract deposits or passively retain deposits, forcing your bank to do the same. Activity.

Not to mention that cash back on deposits is not allowed, even giving gifts on deposits is strictly a matter of focus for inspection by the Banking Regulatory Bureau. For example, our local Rural Commercial Bank was tricked by the Postal Savings Bank once, reporting its deposits and giving gifts. The funniest thing is that the Rural Commercial Bank reported the Postal Savings Bank backhand, and each of the two brother banks paid a fine of 300,000. From this incident, we can feel how fierce the competition among banks is. The phenomenon of cash back on deposits is really common!

For example, if 200,000 yuan is placed in the Agricultural Bank of China, the interest rate on a three-year certificate of deposit is 3.9875%. If 70 yuan is returned for every 10,000 yuan, that is 70 10000 3 100% 0.23%, or That is to say, the actual interest rate is 4.2175%. The interest rate for three-year large-denomination certificates of deposit from local banks and Rural Commercial Banks is mostly 4.2625%, which is higher than the sum of the interest and cash refunds from Agricultural Bank of China. Therefore, it is easy to understand that the large-denomination certificates of deposit are processed at Agricultural Bank of China and the cash is returned in proportion. of!

To sum up, it is normal to get a cashback of 70 yuan for every 10,000 yuan when handling large-denomination certificates of deposit business at Agricultural Bank of China. After all, the deposit interest rate of Agricultural Bank of China is too low, unlike other city commercial banks and rural commercial banks. Compared with having no advantages, it is a helpless move to gain deposits!

Cash rebates in addition to the interest paid on deposits are called discounts in jargon, which is a serious violation. Unless they are local banks (in order to allow them to survive, the local banking regulatory bureau turns a blind eye, and superior inspections are communicating), other state-owned banks and joint-stock banks will issue fines and criticize them by name (the level of notification depends on the inspection). depending on level). No leader, including those of the Agricultural Bank of China, could commit such a blatant violation of regulations. In order to obtain deposits, they all float upward under the national benchmark interest rate (the regulations allow it, but there is an upper limit, which seems to be 55%). If you want to increase the intensity, you generally have to work around it. The most common approach is to assign tasks to employees and link the targets to reward wages. There is nothing wrong with giving money to employees as rewards, and there is no evidence that employees should give money to savers. If the bank does not violate the rules, depositors will benefit. Of course, if employees can make deposits without spending money, then the discount is their own reward salary, and everyone will be happy if they work harder.

Let’s put it this way, the Agricultural Bank of China doesn’t care about you, who has three melons and two dates. Their business turnover is tens of millions per day at any one of their outlets. Will they care about your 70 yuan rebate for 10,000 yuan?

Of course, this kind of behavior is illegal in soliciting reserves, which is definitely problematic, but under normal circumstances, the four major banks will never worry about soliciting reserves, so the four major banks do this Things are less likely.

In fact, the competition among banks is indeed fierce now, but for the four major state-owned banks, they are still as solid as a rock and as stable as a mountain. Competition is mainly concentrated between small and medium-sized private banks, new local commercial banks and rural credit cooperatives.

The central bank has given banks great power over interest pricing. For example, it can increase the interest rate by a certain percentage based on the benchmark interest rate, promote large-denomination certificates of deposit, and issue financial products, etc.

Although the central bank has given room for interest rates to rise, general deposits can rise by about 30%, and large certificates of deposit can rise by 40-45%, but if you look at the four major banks, they basically have no interest rates for general deposits. There is no increase in interest rates, and there are no preferential policies. Occasionally there are some interest differences due to uneven regional economic development, but they are definitely not for the purpose of attracting savings.

Because the four major banks have a good mass base and branches all over the streets, they have no shortage of business.

What you are talking about is most likely a financial product launched by the Agricultural Bank of China.

If it is a financial product, choose it carefully. After all, after the rigid redemption is broken, capital-guaranteed financial products are almost extinct.

The solicitation of deposits in return of cash or gifts is illegal solicitation of deposits. In early 2018, the China Banking and Insurance Regulatory Commission has been emphasizing on rectifying market chaos, including requirements in this regard. In June 2018, the China Banking and Insurance Regulatory Commission issued the "Notice on Improving the Management of Deposit Deviation Degrees of Commercial Banks". The first article on strengthening compliance operations stipulates that: Commercial banks should further regulate deposit-taking behaviors. , shall not use illegal rebates to attract deposits, or absorb deposits through improper means such as returning cash or securities, giving away physical objects, etc.

The Agricultural Bank of China’s large-scale one-year rebate of 70 yuan for every 10,000 yuan mentioned in the title is already an unfair way to attract savings and give back cash, and violates the relevant regulations of the China Banking and Insurance Regulatory Commission.

Although this is required by the system, it is normal for some cities and towns to adopt some unconventional means to attract savings. In rural areas of third- and fourth-tier cities, they offer cash rebates and gift packages. It has developed into an unspoken rule in the industry, especially for rural credit cooperatives and postal savings banks. Cashback from savings has become a routine method at certain assessment time points, such as a good start in the first quarter of each year, the end of quarter assessment time points of each quarter, and With the MPA assessment of banks with a maturity of 10 years, the pressure on banks to attract deposits is very high, so it is not unusual for the Agricultural Bank of China to adopt this method.

Take our bank as an example. We have had a good start in the first quarter. In order to protect some large customers from losing, we will privately communicate with customers and adopt the following cashback measures, but the intensity is not so great. Generally, 10,000 yuan will be returned to 30 yuan - Between 40 yuan and 40 yuan, this is already the maximum limit that the bank can bear. After all, the one-year regular interest rate of the Agricultural Bank of China is only 1.95%. The annual interest of 10,000 yuan is only 195 yuan, and the cashback is 70 yuan, which is equivalent to a disguised increase of 36 yuan. % of the interest cost, for the Agricultural Bank of China, the capital cost pressure in this kind of cash rebate will increase exponentially. After all, a large part of the bank's final profit depends on the interest spread. The bank has short-term fixed funds with a term of one year. It is highly dependent and adopting this high-cost method of collecting savings is detrimental to the interest income of the bank. It can be said to be drinking poison to quench thirst.

It seems that this question will not work even if it is not popular! Then brother, let me go up there! ! ! Agricultural Bank of China will refund 70 for every 10,000 yuan deposited for a large amount for one year, and 1,400 for a minimum deposit of 200,000 yuan. Then let me ask you how much interest will there be on maturity of the 200,000 Agricultural Bank of China certificate of deposit? 4350! ! ! Is this possible? At least it's unofficial, just listen to what's said on the road, if you're serious? You lose!

Frankly confess: I am a member of the Agricultural Bank of China! If you have any questions, please feel free to ask. I admit that there are indeed small gifts for deposits from the Agricultural Bank of China, especially during the annual "Spring Action" period, such as pots and pans, Spring Festival couplets and New Year pictures, toothpaste and toothbrushes, soap and washing powder... they are all available. The uncles and aunties are indeed menacing. The whole hall was in full swing. But, brother, I have never heard of cash back, let alone seen it, let alone such an honest and generous one like 70 for every 10,000 yuan! I'm afraid many city commercial banks and rural commercial banks would be ashamed of this situation, right? In fact, my colleagues and friends who are familiar with Agricultural Bank of China all know that although Agricultural Bank of China is one of the Four King Kongs, the cost management at the grassroots level (especially marketing expenses) is quite strict. Not only is it closely watched by supervision, but also because the family is not well off I am so stretched that I will make you laugh, and the family scandal will only be publicized.

The most likely version of this legend is: a senior brother was overburdened with tasks during "Operation Spring" and was constantly being held accountable During the lecture, with tears in his eyes, he paid for tea with his friends who were supporting him, because if the task could not be completed as scheduled, the performance deduction would be far more than 1,400 points. Do you have to settle this account? There is also the possibility of being transferred or even, hey, it’s too blunt to say it, it’s not about family ugliness...what ahem

I hope this story is purely fictitious, and any similarities are purely coincidental, otherwise if If supervisors receive red envelopes, our generation will also be implicated, which makes me heartbroken just thinking about it. However, even if this happens, I once again remind everyone not to take it seriously. Most of the verbal promises are just empty promises. The senior brother who is carrying a heavy load may not have thought too much about the consequences of these words. If people who are not short of money, such as Jack Ma, Ma Huateng, and Wang Jianlin, know this news and 200 billion is thrown at them, I think your chance of running away will be in doubt. . Take it... and return 1.4 billion yuan!

Not much to say, please go ahead and take it seriously, I will go with the wind