Recently, some rural banks in Henan have encountered issues with normal cash withdrawals, causing widespread anxiety among the public! Many people have posed the "soul three questions":

Is the deposit still safe?

Can the deposit insurance really compensate for the money in the bank?

How to avoid deposit scams?

Understand the types of bank accounts

Before discussing whether deposits are safe, it is important to first understand the type of your bank account, as this is closely related to the safety of your deposits.

Bank accounts are divided into three categories: Class I bank accounts, Class II bank accounts, and Class III bank accounts (hereinafter referred to as Class I accounts, Class II accounts, and Class III accounts), which were classified starting from the 2015 central bank's issuance of the "Notice on Improving Personal Bank Account Services and Strengthening Account Management" (Yin Fa [2015] No. 392).

In 2016, the "Notice on Implementing the Personal Bank Account Classification Management System" (Yin Fa [2016] No. 302) further clarified the methods of opening Class II and Class III accounts, their usage scope, and transaction limits. Currently, the differences among these three types of bank accounts are as follows:In short, a Class I account is what most people understand as a bank account, which can be used for savings, transfers, consumption, investment, and financial management, regardless of the amount. Both Class I and Class II accounts can deposit and withdraw cash, but Class II accounts have limits. If you keep money in a Class II account, you can use up to 10,000 yuan per day for cash withdrawals, transfers, or consumption, except for the purchase of financial products. This type of account can meet basic daily consumption needs while avoiding significant financial losses. Additionally, Class II accounts opened through teller or self-service devices have different usage restrictions compared to those opened through electronic channels.

Advertisement

Class III accounts are similar to a petty cash wallet, primarily used for quick and small payments, as the account can only hold up to 2,000 yuan, effectively preventing fraud and payment risks.

You can check your bank account type in the official bank app under "Account Management," and you can also preliminarily determine the account type by how you opened the account. The vast majority of bank accounts opened through online channels are Class II accounts.

Experts warn that currently, most products related to internet deposits cannot avoid Class II accounts.

Deposit Insurance for Savings

Nowadays, major banks display the "Deposit Insurance" logo at their entrances, leading many people to mistakenly believe that as long as their money is in a bank, it is protected by "Deposit Insurance."

The coverage of deposit insurance mainly includes RMB deposits, foreign currency deposits, personal savings, and corporate deposits of the insured bank, with both the principal and interest falling within the scope of deposit insurance protection. However, financial products such as wealth management and government bonds sold by banks do not belong to savings deposits and are therefore not covered by deposit insurance.

This means that if you use the money in your bank account to purchase financial products through the bank's official app, that portion of money used for purchasing financial products no longer enjoys the protection of deposit insurance, even if the entire purchase process is completed within the bank's app. As long as the money is not a deposit, it cannot enjoy the protection.Not all deposits and interest in banks are fully insured. China's "Deposit Insurance Regulations" clearly stipulate that deposit insurance is subject to a compensation limit, with the maximum compensation limit set at 500,000 yuan. For the same depositor at the same bank, all insured deposit principal and interest that add up to an amount within the maximum compensation limit can be fully compensated; if the amount exceeds the maximum compensation limit, the excess will be compensated according to the law from the liquidated assets of the insured institution.

Furthermore, under what circumstances can a depositor request the use of the deposit insurance fund to compensate for their insured deposits? How long will it take to receive the compensation? The "Deposit Insurance Regulations" also provide guidelines:

Article 19: A depositor has the right to request the deposit insurance fund management institution to use the deposit insurance fund to compensate for their insured deposits within the limits specified in these regulations in any of the following circumstances:

(1) The deposit insurance fund management institution acts as the receiver of the insured institution;

(2) The deposit insurance fund management institution carries out the liquidation of the revoked insured institution;

(3) The People's Court rules to accept the bankruptcy application of the insured institution;

(4) Other circumstances approved by the State Council.

The deposit insurance fund management institution shall, in accordance with the provisions of these regulations, fully compensate the deposits within 7 working days from the occurrence of the circumstances specified in the preceding paragraph.

It is important to note that some financial institutions, in order to attract customers, are very creative in naming their products. What everyone should be aware of is that a product name containing the word "deposit" does not necessarily mean it is a deposit; it could very well be a financial product invested in fixed deposits, and financial products are not protected...

How to safeguard deposits?In a nutshell, regular bank deposits are still safe! What individuals need to pay attention to is ensuring that the money is indeed a "deposit." So, the question is, how can one ensure this?

Firstly, opt for deposits in large national banks or their branches, as these banks have a higher reputation and a lower probability of risk.

Secondly, it is essential to be adept at using the official bank apps! The official bank apps! The official bank apps!

On one hand, after making a deposit, one can check through the bank's app whether the deposit has been recorded in the bank's system. Whether it is a Type I or Type II account, the deposit information will definitely be clearly displayed under the account where the money is deposited, such as current balance, term deposits, etc. The terminology may vary across different banks, but there will always be a display. If there is no relevant information, one can quickly contact the bank for consultation and processing.

On the other hand, individuals can also handle term deposit services through the official bank apps, eliminating the need to visit bank branches. This is not only convenient and fast but also safe, avoiding losses due to "personal actions" of bank staff that may lead to "unauthorized transactions."