China's Savers Wise Up to Above-Market Rates
Lin Baozhen, a 61-year-old retired accountant in Shanghai, was a dream customer for Chinese banks. For a decade she kept her money at China Construction Bank in an account currently paying 3.5 percent interest. No more. This month, Lin moved half her 800,000 yuan ($127,000) savings into a 95-day investment product offered by the bank that guarantees the principal and pays 5.5 percent annualized returns. That’s one percentage point above the latest inflation rate. “I am not investment-savvy, but it would be stupid of me if I just leave the deposits there doing nothing,” says Lin in the lobby of her bank branch in Pudong. “The math is simple. I need something safe and with a return that can at least beat inflation.”
To continue reading this article you must be a Bloomberg Professional Service Subscriber.
If you believe that you may have received this message in error please let us know.
- Tesla Unveils ‘World’s Fastest Production Car’ and Electric Big Rig
- Norway Idea to Exit Oil Stocks Is ‘Shot Heard Around the World’
- Getting a Dog May Save Your Life, Especially If You’re Single
- The Questionable Math Behind Manafort’s Extravagant Home Renovations
- World’s Biggest Wealth Fund Wants Out of Oil and Gas