According to the requirements of the new asset management regulations, wealth management products other than "deposits", including bank wealth management products, cannot promise to protect capital and interest. Of course, not promising to protect capital and interest does not mean that wealth management products have great "risks".
Bank wealth management products mainly adopt simple interest, that is, deposits with a certain period and a certain amount will have a relatively fixed expected annualized income space. Whether it is fixed expected annualized income or floating interest, during the financing period, bank wealth management products are simple interest. Insurance wealth management products are different, and most of them are calculated by compound interest. That is, during the insurance period, the cash value in the investment account is calculated on a yearly basis with interest.