How do not to lose money in a Chinese bank - conditions for deposit insurance in China and a refund

In 2015, the Central Bank of China introduced a deposit insurance system, which stipulates that for a full return of a deposit in Chinese bac, the amount of the deposit + interest of depositors should not exceed 500,000 yuan. Therefore, even if a bank in China goes bankrupt, the deposit is still guaranteed to be returned to the depositor, provided that this deposit is in a bank that is a member of the deposit insurance system.


Keep in mind, if part of the deposit exceeds 500,000 yuan, then the special commission will sell the assets of the bankrupt bank, and then compensate the depositor's deposit in accordance with a certain proportion, so depositors in China have a high probability of receiving those parts of their deposits that exceed 500,000 yuan .


If the bank goes bankrupt, there are two situations in which the bank will not pay compensation: first, the bank where the depositor is located did not participate in deposit insurance, in this case, even if the bank goes bankrupt, it is very difficult for the depositor to receive compensation. There are currently 4,600 banks in the country, and about 600 banks did not participate in deposit insurance, so when depositors save money, they should not only wish for high interest rates, but also check if the bank has a deposit insurance logo.


Secondly, if a bank's asset management products are purchased and the bank goes bankrupt, the bank's asset management products purchased by investors are not protected by deposit insurance rules, so if there is a loss, only the investor can bear the loss.