In the eyes of many people, bank = safety, so they will buy bank financial products, but! Buy product of bank finance also has trap oh! When you buy bank financial products, there are 10 pits that must be known. Today, let’s give you a systematic stroking:

1. Banks may lose money on financial products

The market for bank wealth management products has been very hot in recent years, because the yield is much higher than that of time deposits, and because investors trust banks. It is estimated that many partners have the same impression of bank financial products: extremely low risk and higher yield than time deposit. This impression is generally correct, but not entirely so. In the past two years, many banks broke the bank financial products “zero return gate”, “negative return gate” event is the best warning. It is important to understand that the steady profit of financial products is a myth. Some financial products may not get the expected return when they mature, and some may not even guarantee the principal.

2. When buying bank financial products, we should pay attention to the period of raising and clearing, which will make the financial income “diluted”.

Under normal circumstances, the bank will generally claim that the bank financial products do not enjoy income in the period of fund raising and settlement, and are calculated according to the interest of demand deposits or do not carry interest. If we buy early and the product has a longer raise and clearing period, our real return will be dragged down. Such as: A one-month financial product with an expected yield of 5.5% will be sold from September 26 and raised from October 7. Interest will be calculated from October 8. After the maturity of 30 days, there will be a 10-day liquidation period, that is to say, the gap period of this product is 22 days. Can not “dilate” the real income of the buyer’s financial management.

3. Expected earnings are not equal to actual earnings

Many banks are now offering wealth management products with “attractive” yields, such as expected yields of 6% on their screens. Well, at first glance, 6% is very high. However, please note that not all financial products can achieve the promised yield, because the expected yield is not equal to the actual yield to maturity. BanBan reminds oh: choose bank financial products, do not just stare at the yield. “Expectations” are not the same as the final revenue, and sometimes the actual revenue is not as much as advertised.

4. The rating of banks’ financial products may not be reliable

In the bank financial product manual, we can often see the related risk rating. ZX Bank, for example, has a product listed in its prospectus as PR2 (robust, yellow). In fact, all the evaluations are made by the banks themselves, not by a third party, so they are of little significance.

5. When buying bank financial products, risk prompts must be clearly read!

If you are interested, you can look at the manuals of financial products issued by many banks. You will find that although many manuals are more than ten pages long, they reveal little about the inherent risks of the products. Most of them are marketing language rather than objective in-depth analysis. Those risks are too technical, even jargon, for ordinary people to fully understand.

6, the investment of the product is what we should pay attention to

When buying bank financial products, we always need to know how to make money and how to get profits. The investment of funds in financial products is directly linked to the risks of the products. If the funds of a product are invested in bond repurchase, deposits, national bonds, financial bonds, central bank bills, etc., the risk of such financial products is low; If the capital investment of the product is stocks, funds, such financial products are high risk, and there is even a risk of loss.

7. Look at the instructions of the bank’s financial products to see if there are any overbearing provisions. Try not to touch such products

In some product prospectuses, for example, it is stated that “the highest excess of the expected annualised return will be charged to the bank as an investment management fee”.

8. See whether the product is sold spontaneously by the bank or on commission

In the bank channel, most bank financial products are sponsored by the bank, but some banks also sell other financial products as agents. Generally, the prospectuses of such bank financial products clearly state that “the bank acts as the agent of the investor… Such a statement, this is that the bank only admits that it is an agent, entrustment relationship, if something goes wrong, the bank is not responsible.

9. Ultra-high returns are generally fictitious

In general, the most attractive is the rate of return, no matter who believe that high rate of return is a great temptation. But now the bank financing part of the capital or non-capital – protected floating income products are more, there are strict restrictions such as trigger conditions. Significantly above-average earnings are mostly marketing gimmicks.

10. Be careful of hidden expenses

Some banks’ financial product prospectuses say that the expected return on financial products is calculated by the formula “expected return on investment of financial planning – sales charges, custodial fees and other fees of financial products”. Do you see the word “wait”? One word more, one word less, sometimes it’s just a big hole.

If you can figure out the above problems when buying bank financial products, you can almost avoid the pit of bank financial products.