People who invest in securities, funds or wealth management products are always looking to get the best of both worlds. A number of investors hope that they can earn high interest on idle funds gained from investments whilst at the same time retaining the flexibility and liquidity of such funds for the purpose of easy reinvestment. It has just been learned that a new savings product known as Intelligent Notice Deposit (Ease Fortune) launched by the Industrial Bank on the 18 th of this month is able to meet such demands. The product has three major features that can help customers to manage their investments with ease and maximize yields, they are:
Intelligent Deposit Term Selection
Intelligent Notice Deposit (Ease Fortune) does not require customers to preset the deposit term. The bank system will automatically and intelligently select the most suitable deposit term based on the deposit time. If the consecutive deposit period reaches or exceeds seven days, the “7-day notice deposit interest rate” will apply; if the consecutive deposit period is less than seven days, the “1-day notice deposit interest rate” will apply. With interest rates higher than that of current deposits, it helps customers manage their money and make gains with ease.
Compound Interest Gain Every 7 Days
After customers apply for the Intelligent Notice Deposit (Ease Fortune), if the balance of the current account is more than RMB 50,000, the portion in excess of RMB 50,000 in integral multiples of RMB 1,000 will be automatically transferred into the Intelligent Notice Deposit (Ease Fortune) account and the notice deposit interest rate will apply for this portion. In addition, the interest accruing from the Intelligent Notice Deposit (Ease Fortune) account will be automatically settled every seven days. Following this, the bank system will automatically transfer the interest and the usable portion from the current account in integral multiples of RMB 1,000 into the principal for interest accruement. Thus customers gain compound interest.
Convenience and Flexibility of Current Savings
The Intelligent Notice Deposit (Ease Fortune) account features automatic transfer. In the event that there is a shortage of funds in the current deposit account when customers attempt to withdraw money, make a purchase or make a third-party custody bank-securities transfer, the bank will automatically transfer the shortfall from the Intelligent Notice Deposit (Ease Fortune) account into the current account.
Supposing that a customer has RMB 1,000 in his current account and RMB 200,000 in his Intelligent Notice Deposit (Ease Fortune) account, and that he wants to transfer RMB 100,000 to his securities account. In this case, a sum of RMB 99,000 will be automatically transferred from the Intelligent Notice Deposit (Ease Fortune) account to make-up for the shortage in the current account. The remaining balance of RMB 101,000 will be kept in the Intelligent Notice Deposit (Ease Fortune) account.
This service can be applied for in a number of ways. Customers may apply for the Intelligent Notice Deposit (Ease Fortune) service at any IB outlet nationwide, or activate the service on their own via the online bank (www.cib.com.cn), telephone bank (95561) or mobile bank (wap.ib.com.cn). For more details, please dial the Industrial Bank's national customer service hotline on 95561.
Example:
Mr. Chen has RMB 300,000 in his current account.
Without the Intelligent Notice Deposit (Ease Fortune), his annual interest gain from his current deposit is 300000*0.36%=1080 Yuan;
With the Intelligent Notice Deposit (Ease Fortune), his annual interest gain is 300000*[(1+1.35%/52)52-1]=4076.93 Yuan;
Mr. Chen earns 3.77 times more interest after applying for the Intelligent Notice Deposit (Ease Fortune).