"Buff stacking" addictive? Bank wealth management fast redemption limit increased to 1.5 million

Through continuous improvement and innovative strategies, the banking wealth management sector has gradually emerged from a slump and regained lost ground in the past six months.

According to the latest statistics, as of the end of June 2023, there were a total of 265 banking institutions and 30 wealth management companies in the country with existing wealth management products, with a total scale of 25.34 trillion yuan.

Among them, the response to the "quick redemption" demand from customers is crucial.

At the end of 2022, in order to implement the regulatory requirements of the two ministries' "Notice on the Regulation of Cash Management-Type Wealth Management Products", the daily redemption limit for all cash management-type wealth management products under banks was reduced to 10,000 yuan.

However, for customers, the 10,000 yuan limit may indeed seem "insufficient".

The latest data shows that banks have "solved" this problem by offering combination wealth management products. The maximum quick redemption amount for some bank wealth management combinations has reached 1.5 million yuan.

This has naturally attracted attention.

Quick Redemption Limit Raised to 1.5 Million Yuan

Recent data analysis shows that banks have raised their quick redemption limits by creating combination wealth management products, with some individual products reaching as high as 1.5 million yuan.

For example, according to the information displayed on the CMB app, its "Quick Redemption+" product has raised the quick redemption limit to 1.5 million yuan by connecting to 70 cash management products and 80 optional money market fund products.

The specific approach is as follows: after investors sign up for "Quick Redemption+", the funds they allocate to the product will automatically be used to purchase the connected wealth management or money market fund products (referred to as "sub-products") according to certain rules (such as from high to low based on the 7-day annualized yield).

Since each sub-product can enjoy a quick redemption limit of 10,000 yuan, theoretically, investors can enjoy same-day quick redemption (real-time settlement) for subscription funds within 1.5 million yuan.

This is the logic behind the increase in quick redemption limits.

System Support and Liquidity Management

Of course, behind this lies a series of product innovations and system support by the banks.

On one hand, it requires the ability to calculate and allocate funds for investors' purchase and redemption transactions quickly.

For example, during the subscription process, it needs to adapt to a series of complex transfer rules. (See the figure below)

On the other hand, it also needs to meet various requirements such as yield calculation, fee extraction, and cash flow risk management.

In addition, its sales platform also needs to be able to attract a large number of money market funds and wealth management products willing to connect with it.

To some extent, the ability to continuously increase the quick redemption limit also demonstrates the comprehensive capabilities of the bank in the field of wealth management.

7-Day Annualized Yield is Not Low

Furthermore, the latest statistics show that some quick redemption products not only have high limits but also offer competitive yields, which demonstrates their attractiveness to customers. According to the CMB app, on October 7th, there were 9 wealth management products with a 7-day annualized yield of over 3% in the "Quick Redemption+" sub-product, with the highest reaching 3.85%.

In addition, there were 13 wealth management products with a 7-day annualized yield of over 2.5%, including 6 money market funds.

Overall, it can be seen that both liquidity and yield are taken into account.

Competitive Increase in High Quick Redemption Limits

Not only in "Quick Redemption+", but also with the popularity of the "Pocket Combination" wealth management method, many banks have targetedly launched the "Pocket Combination" wealth management method, and the quick redemption limits have been increasing over time.

For example, CITIC Bank's "Active Money+" product, which includes 70 money market funds, currently has a daily maximum quick redemption limit of 700,000 yuan.

Another example is Ping An Bank's "Flexible Treasure", which also has a daily quick redemption limit of 300,000 yuan.

In addition, products such as Bank of Communications' "Current Income" and Postal Savings Bank's "Everyday Income" have also broken through the 10,000 yuan quick redemption limit in a similar manner.

The significant increase in the daily quick redemption limit can meet the needs of users for quick redemption of large amounts of funds, and has become a competitive highlight for banks to attract funds.