Structured deposit refers to the financial products with certain risks that investors deposit their RMB funds in banks, and the banks embed financial derivatives on the basis of ordinary deposits, which link the investor’s income to, and index, etc.
The principal of renminbi structured deposits is safe and no different from ordinary deposits.
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The difference is the interest risk.
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Ordinary deposits, principal and interest are rigidly cashed and safe.
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As with financial products, the interest paid on structured renminbi deposits is uncertain.
Structured deposits in Renminbi generally have longer maturities.
This is also because financial instruments take time to work.
The longer the deadline, the more time value will be reflected.
