NANJINGNOW

When you put money in a fixed deposit, you need to know three things:

1. The rates are the same country-wide, whichever bank you are with.
2. How to take it out: Let’s use an example here to understand better. Two years back, if you had put in 1000rmb for a one year Fixed Deposit (定期存款), you’d get 2.25% interest. If you’d put in your money in 1 Sept 2005, you can take out the original 1000rmb plus the interest (minus tax) on 1 Sept 2006. If you take out the money any later, you’ll just receive a savings deposit interest (minuscule amount) for money left in there for anytime after 1 Sept 2006. However, if you leave in in for another year, and decide to take it out on 1 Sept 2007, then you get another year of interest at 2.25%. Using the same example, if you had decided to take it out on 31 Dec 2006, you essentially have put money into a one year fixed deposit for 1.5 years. The interest you get is 2.25% for the first one year, and 0.00whatever% for the remaining half year.
3. Tax: Before Aug 2007, the tax on interest made was a whooping 20%. After that, at the time of writing, it is only 5%.