Are Agricultural Bank of China's bank profits protected by state deposits?

Agricultural Bank of China Yinliduo is a deposit product of Agricultural Bank of China. This product is a personal deposit-term product that is issued in installments based on market needs and marketed to specific regions and specific individual user groups. It is a type of deposit. Therefore, it is protected by the "Deposit Insurance Regulations", that is, if a single bank's deposits are less than 500,000, 100% compensation will be paid even if the bank goes bankrupt, but the part exceeding 500,000 is not protected and may suffer losses.

Among them, Agricultural Bank of China’s bank profit margin has the following characteristics:

1. Standard deposit, safe principal and interest;

2. Lower starting point, higher income;

3. Multiple installments, more choices;

4. Support multiple storage media such as debit cards, passbooks, and certificates of deposit;

5. Interest starts on the day of purchase , one-time repayment of principal and interest when withdrawn at maturity;

6. When partial or full withdrawal is made in advance, interest will be calculated based on the current deposit interest rate announced on the withdrawal date. If the retained amount is lower than the sales starting point amount The account will be forced to be closed;

7. This product does not support automatic transfer, and the customer needs to cancel the account by himself when the product expires;

8. Each period of silver profit will be more than the starting amount, execution There are differences in interest rates, etc. Customers should read the product instructions carefully before purchasing Yinliduo and ensure that they fully understand the terms.

At the same time, the deposit insurance system is a financial security system, which refers to the establishment of an insurance institution by various qualified depository financial institutions. Pay insurance premiums to establish deposit insurance reserves. When a member institution encounters an operating crisis or faces bankruptcy, the deposit insurance institution provides financial assistance or directly pays part or all of the deposits to depositors, thereby protecting the interests of depositors and maintaining bank credit. A system that stabilizes financial order.

The deposit insurance system can improve the stability of the financial system, protect the interests of depositors, and promote moderate competition in the banking industry; however, it also has its own costs, which may induce moral hazard, make banks bear more risks, and also create The problem of adverse selection.