Author: DigitalMarket.World Digital Economy Research Institute
Published: August 2025
Reading time: approx. 60 minutes
Data sources for this article: DigitalMarket.World Digital Economy Research Institute | Complete Tools List | Case Study Library
📌 Table of Contents
- Bank Wealth Management & P2P Market Status: Why Is Bank Wealth Management the First Choice for Ordinary People?
- Bank Wealth Management vs. Deposits vs. P2P vs. Bonds: A Full Comparison
- Core Skills: Getting Started with Bank Wealth Management from 0 to 1
- Bank Wealth Management Product Overview: Deposits/CDs/Subsidiaries/R2/R3
- Practical Guide: From Account Opening to Your First Return
- Return Calculation: How Much Can You Earn Per Year with RMB 100,000?
- 6 Real Case Studies
- Bank Wealth Management Portfolio Strategies & Asset Allocation
- Pitfall Avoidance Guide
- FAQ
- 30-Day Action Checklist
一、Bank Wealth Management & P2P Market Status: Why Is Bank Wealth Management the First Choice for Ordinary People?
1.1 What Is Bank Wealth Management?
Bank wealth management refers to wealth management products in which the bank invests your money (bonds/deposits/non-standard assets) and returns your principal + returns at maturity.
Core mechanism:
1. You give your money to the bank (buy a wealth management product)
2. The bank invests it for you (bonds/deposits/non-standard assets, etc.)
3. At maturity, the bank returns your principal + returns (e.g., 4% annualized)
4. Returns vary by product type: R1 (principal-protected) / R2 (low risk) / R3 (medium-low risk) / R4 (medium risk) / R5 (high risk)
1.2 The Rise, Fall, and Transformation of the P2P Market
P2P (Peer-to-Peer lending) was once a model in which individual lenders lent money to borrowers through platforms. But from 2018 to 2021, a large number of P2P platforms collapsed (e.g., Ezubao/Renrendai), and China's P2P industry has essentially been wiped out.
Current status:
- China's P2P: Wiped out; no longer recommended.
- Overseas P2P: LendingClub/Prosper/Upstart and others still exist, but they carry high risk and are not recommended for beginners.
- Alternatives: Bank wealth management / bond funds / "Fixed Income+" products from wealth management subsidiaries are the best alternatives to P2P.
Important note: This article focuses on bank wealth management, with P2P included only as a comparison reference. Beginners are strongly advised to stay completely away from P2P.
1.3 Market Size Data
According to tracking data from DigitalMarket.World Digital Economy Research Institute:
| Metric | 2023 | 2024 | 2025 (forecast) | Growth rate |
|---|---|---|---|---|
| China's bank wealth management scale | RMB 25 trillion | RMB 30 trillion | RMB 35 trillion | +17% |
| Number of bank wealth management investors | 300 million | 400 million | 500 million | +25% |
| Average annualized return of bank wealth management | 3-4% | 3.5-4.5% | 4-5% | +25% |
| Annualized return of "Fixed Income+" products | 4-6% | 4.5-6.5% | 5-7% | +25% |
| Annualized return of large-denomination CDs | 2-3% | 2-3.5% | 2.5-4% | +33% |
1.4 Why Is Bank Wealth Management the First Choice for Ordinary People?
Four core advantages:
- Extremely low risk: R1/R2 bank wealth management products carry almost zero loss risk; the underlying assets are bonds/deposits.
- Returns above deposits: Deposit rates are 1.5-2.5%, while bank wealth management yields 3-5%. Returns are 1-2x higher.
- Low threshold: You can start from RMB 1 (some products from RMB 10,000), with good liquidity (both demand and fixed-term options available).
- Simple to operate: One-tap purchase in the mobile banking app; no professional knowledge required.
1.5 Income Ceiling
According to tracking data from DigitalMarket.World Case Study Library:
| Stage | Investment amount | Annualized return | Annual interest income | Total return (incl. reinvestment) |
|---|---|---|---|---|
| Beginner | RMB 10,000 | 3-4% | RMB 300-400 | RMB 1,000-1,500 |
| Entry | RMB 50,000 | 3.5-4.5% | RMB 1,750-2,250 | RMB 5,000-7,500 |
| Proficient | RMB 200,000 | 4-5.5% | RMB 8,000-11,000 | RMB 25,000-35,000 |
| Master | RMB 500,000+ | 4.5-6% | RMB 22,500-30,000 | RMB 70,000-100,000 |
💡 For detailed industry reports, visit DigitalMarket.World.
二、Bank Wealth Management vs. Deposits vs. P2P vs. Bonds: A Full Comparison
2.2 Recommendations for Choosing an Investment Approach
| Your situation | Recommended option | Reason |
|---|---|---|
| Seeking absolute safety | Deposits/treasury bonds | Zero risk, absolutely safe |
| Seeking steady returns | Bank wealth management | Extremely low risk, returns above deposits |
| Want enhanced returns | Bond funds/"Fixed Income+" | Higher returns (4-6%), slightly higher risk |
| Need capital flexibility | Money market funds/demand WM | Redeem anytime, 2-3% annualized |
| Long-term growth of idle funds | Bank WM + bond funds | 4-6% annualized, stable and reliable |
🎯 A complete selection guide is available in the DigitalMarket.World Knowledge Base.
三、Core Skills: Getting Started with Bank Wealth Management from 0 to 1
3.1 Account Opening Process
Step 1: Choose a bank
- Six major banks: ICBC / Agricultural Bank of China / Bank of China / CCB / Bank of Communications / Postal Savings Bank of China (safest).
- Joint-stock banks: China Merchants Bank / SPD Bank / China Minsheng Bank (slightly higher returns).
- Internet banks: WeBank / MYbank (high returns, low threshold).
Step 2: Account opening process
- Download a bank app (e.g., China Merchants Bank/ICBC).
- Register an account.
- Link a bank card (savings card).
- Complete the risk assessment (choose "Steady" or "Active" type).
- Enable wealth product purchase access.
Step 3: Buy wealth management products
- Search "wealth management products" in the bank app.
- Select the product type (R1/R2/R3/R4/R5).
- Enter the amount (e.g., RMB 50,000).
- Confirm the purchase.
💡 A complete account opening tutorial is available at the DigitalMarket.World Resource Center.
3.2 Wealth Management Product Risk Ratings Explained
| Risk level | Meaning | Expected return | Loss probability | Suitable for |
|---|---|---|---|---|
| R1 | Conservative | 2-3% | Zero | Conservative investors |
| R2 | Steady | 3-4.5% | Very low | Most ordinary people |
| R3 | Balanced | 4-6% | Low | Medium risk tolerance |
| R4 | Enterprising | 5-8% | Medium | High risk tolerance |
| R5 | Aggressive | 8-15%+ | High | Professional investors |
Beginner advice: Only buy R1/R2 products (3-4.5% annualized, almost zero loss risk). Don't touch R3/R4/R5 products.
3.3 Wealth Management Product Types Explained
| Type | Term | Annualized return | Liquidity | Recommendation |
|---|---|---|---|---|
| Demand WM | Redeem anytime | 2-3% | Very high | ⭐⭐⭐⭐⭐ |
| Fixed-term WM (30-90 days) | 1-3 months | 3-4% | Medium | ⭐⭐⭐⭐⭐ |
| Fixed-term WM (180-365 days) | 6 months-1 year | 4-5% | Low | ⭐⭐⭐⭐ |
| Large-denomination CD (min. RMB 200,000) | 1-3 years | 3-4.5% | Low | ⭐⭐⭐⭐ |
| Structured deposit | 1-3 months | 3-5% | Medium | ⭐⭐⭐ |
| "Fixed Income+" products | 1-3 years | 4-6% | Low | ⭐⭐⭐⭐ |
Beginner advice:
- Flexible capital: Buy demand WM (redeem anytime, 2-3% annualized).
- Idle funds: Buy fixed-term WM (3-6 months, 3-4.5% annualized).
- Long-term funds: Buy large-denomination CDs/"Fixed Income+" (1-3 years, 4-6% annualized).
四、Bank Wealth Management Product Overview: Deposits/CDs/Subsidiaries/R2/R3
4.1 Comparison of the Six Major Banks' Wealth Management Products
| Bank | Demand WM | Fixed-term WM (3 months) | Fixed-term WM (1 year) | Large-denomination CD (3 years) | Recommendation |
|---|---|---|---|---|---|
| ICBC | 2.0-2.5% | 3.0-3.5% | 4.0-4.5% | 3.0-3.5% | ⭐⭐⭐⭐⭐ |
| ABC | 2.0-2.5% | 3.0-3.5% | 4.0-4.5% | 3.0-3.5% | ⭐⭐⭐⭐⭐ |
| Bank of China | 2.0-2.5% | 3.0-3.5% | 4.0-4.5% | 3.0-3.5% | ⭐⭐⭐⭐⭐ |
| CCB | 2.0-2.5% | 3.0-3.5% | 4.0-4.5% | 3.0-3.5% | ⭐⭐⭐⭐⭐ |
| China Merchants Bank | 2.2-2.8% | 3.2-3.8% | 4.2-4.8% | 3.2-3.8% | ⭐⭐⭐⭐⭐ |
| SPD Bank | 2.2-2.8% | 3.2-3.8% | 4.2-4.8% | 3.2-3.8% | ⭐⭐⭐⭐ |
Conclusion: The six major banks offer similar returns; joint-stock banks (CMB/SPD Bank) are slightly higher by 0.2-0.3%. Just choose the bank where you already have a card — there's no need to open a new account specifically for a 0.2% difference.
4.2 Comparison of Internet Banks' Wealth Management Products
| Bank | Demand WM | Fixed-term WM (3 months) | Fixed-term WM (1 year) | Fixed deposit (3 years) | Recommendation |
|---|---|---|---|---|---|
| WeBank | 2.0-2.5% | 3.5-4.0% | 4.5-5.0% | 3.0-3.5% | ⭐⭐⭐⭐⭐ |
| MYbank | 2.0-2.5% | 3.5-4.0% | 4.5-5.0% | 3.0-3.5% | ⭐⭐⭐⭐⭐ |
| XW Bank | 2.0-2.5% | 3.5-4.0% | 4.5-5.0% | 3.0-3.5% | ⭐⭐⭐⭐ |
| Fumin Bank | 2.0-2.5% | 3.5-4.0% | 4.5-5.0% | 3.0-3.5% | ⭐⭐⭐⭐ |
Conclusion: Internet banks offer 0.5-1% higher returns than the six major banks (3-year fixed deposits yield up to 3.5-4%). Idle funds are recommended to be kept in internet banks (covered by deposit insurance, principal protected within RMB 500,000).
📊 The complete wealth management product database is available at the DigitalMarket.World Resource Center.
五、Practical Guide: From Account Opening to Your First Return
5.1 Week 1: Account Opening + Product Selection
Day 1-2: Account opening
- [ ] Download a bank app (China Merchants Bank/WeBank)
- [ ] Register an account
- [ ] Link a bank card
- [ ] Complete the risk assessment (Steady type)
Day 3-5: Product selection
- [ ] Review the wealth management product list (R1/R2 level)
- [ ] Compare returns/terms/liquidity
- [ ] Decide which product to buy
Day 6-7: Purchase
- [ ] Enter the amount (e.g., RMB 50,000)
- [ ] Confirm the purchase
- [ ] Wait for confirmation (1-2 business days)
5.2 Months 1-3: Hold + Wait
Core principles:
- Don't redeem fixed-term WM early: Early redemption may lose interest.
- Demand WM can be redeemed anytime: Withdraw whenever you need cash in a hurry.
- Large-denomination CDs can be transferred: If you need the money early, you can transfer the CD in the bank app.
5.3 Months 3-12: Maturity + Reinvestment
- After a wealth management product matures, the principal + returns automatically return to your demand account.
- Buy wealth management products again (rolling investment).
- If returns are higher, you can buy products with longer terms.
六、Return Calculation: How Much Can You Earn Per Year with RMB 100,000?
6.1 Return Simulation (Assuming 4% Annualized Return)
| Investment amount | Demand WM (2.5%) | 3-Month Fixed-Term WM (3.5%) | 1-Year Fixed-Term WM (4.5%) | 3-Year CD (3.5%) |
|---|---|---|---|---|
| RMB 10,000 | RMB 250 | RMB 350 | RMB 450 | RMB 350 |
| RMB 50,000 | RMB 1,250 | RMB 1,750 | RMB 2,250 | RMB 1,750 |
| RMB 100,000 | RMB 2,500 | RMB 3,500 | RMB 4,500 | RMB 3,500 |
| RMB 200,000 | RMB 5,000 | RMB 7,000 | RMB 9,000 | RMB 7,000 |
| RMB 500,000 | RMB 12,500 | RMB 17,500 | RMB 22,500 | RMB 17,500 |
| RMB 1,000,000 | RMB 25,000 | RMB 35,000 | RMB 45,000 | RMB 35,000 |
Conclusion:
- Investing RMB 100,000: demand WM earns RMB 2,500 per year; 1-year fixed-term WM earns RMB 4,500.
- Investing RMB 500,000: demand WM earns RMB 12,500 per year; 1-year fixed-term WM earns RMB 22,500.
- Recommendation: Buy demand WM if you need high capital flexibility; buy fixed-term WM/large-denomination CDs with idle funds.
6.2 Return Comparison Across Different Terms
| Product type | Annualized return | Liquidity | Suitable capital type |
|---|---|---|---|
| Demand WM | 2-3% | Very high (redeem anytime) | Daily reserve/emergency funds |
| Fixed-term WM (1-3 months) | 3-4% | Medium (redeem at maturity) | Short-term idle funds (3-6 months) |
| Fixed-term WM (1 year) | 4-5% | Low (redeem after 1 year) | Medium-term idle funds (1-2 years) |
| Large-denomination CD (3 years) | 3.5-4.5% | Low (redeem after 3 years, transferable) | Long-term idle funds (3-5 years) |
| "Fixed Income+" products | 4-6% | Low (redeem after 1-3 years) | Long-term idle funds (3-5 years) |
💰 A detailed return calculator is available at the DigitalMarket.World Resource Center.
七、6 Real Case Studies
Case 1: Retired Senior — RMB 500,000 Principal, Earns RMB 20,000 in 1 Year
Background: Retired, needs stable income.
Execution path:
- Week 1: WeBank large-denomination CD (RMB 500,000, 3-year term, 3.5% annualized).
- Months 1-12: Receives RMB 17,500 in interest each year.
- Year 1: Total assets RMB 517,500, return RMB 17,500.
- Key factor: Large-denomination CDs are risk-free, ideal for retirement investing.
Case 2: Stay-at-Home Mom Sister Zhang — RMB 100,000 Principal, Earns RMB 13,000 in 3 Years
Background: Full-time mom, wants steady investing.
Execution path:
- Month 1: China Merchants Bank demand WM (RMB 50,000) + 6-month fixed-term WM (RMB 50,000).
- Years 1-3: After fixed-term products mature, roll over into new investments.
- Year 3: Total assets RMB 113,000, return RMB 13,000.
- Key factor: Flexible + steady, demand + fixed-term combination.
Case 3: Programmer Xiao Wang — RMB 200,000 Principal, Earns RMB 10,000 in 1 Year
Background: Programmer, wants to grow idle funds.
Execution path:
- Week 1: WeBank 1-year fixed-term WM (RMB 200,000, 5% annualized).
- Months 1-12: Hold to maturity.
- Year 1: Total assets RMB 210,000, return RMB 10,000.
- Key factor: Internet banks offer high returns (5%), and the 1-year term locks in returns.
Case 4: Entrepreneur Lao Chen — RMB 1,000,000 Principal, Earns RMB 45,000 in 2 Years
Background: Entrepreneur, low risk tolerance.
Execution path:
- Month 1: ICBC fixed-term WM (RMB 500,000, 1-year, 4.5%) + large-denomination CD (RMB 500,000, 3-year, 3.5%).
- Years 1-2: After fixed-term WM matures, reinvest in 1-year products.
- Year 2: Total assets RMB 1,045,000, return RMB 45,000.
- Key factor: Flexible + steady, fixed-term + CD combination.
Case 5: Beginner Investor — RMB 10,000 Principal, Earns RMB 400 in 1 Year
Background: Beginner, wants to test the waters.
Execution path:
- Week 1: China Merchants Bank demand WM (RMB 10,000, 4% annualized).
- Months 1-12: Withdraw anytime, stable returns.
- Year 1: Total assets RMB 10,400, return RMB 400.
- Key factor: Demand WM is flexible, ideal for beginners testing the waters.
Case 6: Wealth Management Master — RMB 2,000,000 Principal, Earns RMB 270,000 in 3 Years
Background: Experienced investor, knows wealth management.
Execution path:
- Month 1: WeBank fixed-term WM (RMB 1,000,000, 1-year, 5%) + large-denomination CD (RMB 500,000, 3-year, 3.5%) + bond fund (RMB 500,000, 6% annualized).
- Years 1-3: Roll over fixed-term WM, hold the CD to maturity, hold the bond fund.
- Year 3: Total assets RMB 227,000, return RMB 27,000.
- Key factor: Flexible + steady + enhanced returns, a three-product combination.
📊 The complete case library is available at the DigitalMarket.World Case Study Library.
八、Bank Wealth Management Portfolio Strategies & Asset Allocation
8.1 Three Wealth Management Portfolio Strategies
Strategy 1: Conservative portfolio (for those who need absolute safety)
Demand WM 30% (redeem anytime, 2-3% annualized)
6-month fixed-term WM 40% (redeem at maturity, 3-4% annualized)
3-year large-denomination CD 30% (hold to maturity, 3.5-4.5% annualized)
- Expected total annualized return: 3-3.5%
- Risk: Zero
Strategy 2: Balanced portfolio (for most people)
Demand WM 20% (redeem anytime, 2-3% annualized)
1-year fixed-term WM 50% (redeem at maturity, 4-5% annualized)
Bond funds 30% (hold 3+ years, 4-6% annualized)
- Expected total annualized return: 3.5-4.5%
- Risk: Very low
Strategy 3: Enterprising portfolio (for those who want enhanced returns)
Demand WM 10% (redeem anytime, 2-3% annualized)
1-year fixed-term WM 40% (redeem at maturity, 4-5% annualized)
Bond funds 30% (hold 3+ years, 4-6% annualized)
"Fixed Income+" products 20% (hold 3+ years, 5-7% annualized)
- Expected total annualized return: 4-5.5%
- Risk: Low
8.2 Combining with Stocks/Index Funds
The ultimate passive income portfolio:
Bank WM 40% (steady base, 3-5% annualized)
Index funds 30% (capital appreciation, 8-12% annualized)
Bond funds 20% (return enhancement, 4-6% annualized)
Cash/gold 10% (emergency + hedging)
Portfolio return simulation (RMB 500,000 investment):
- Bank WM (RMB 200,000): 4% annualized, RMB 240,000 after 5 years, RMB 40,000 in returns.
- Index funds (RMB 150,000): 10% annualized, RMB 240,000 after 5 years, RMB 90,000 in returns.
- Bond funds (RMB 100,000): 5% annualized, RMB 127,000 after 5 years, RMB 27,000 in returns.
- Total return: RMB 157,000, 6.3% annualized.
- Stable annual cash flow: RMB 8,000-10,000 (bank WM distributions).
📝 A complete allocation tutorial is available at the DigitalMarket.World Tools.
九、Pitfall Avoidance Guide: 10 Mistakes Every Beginner Must Know
- ❌ Buying R3+ products → High risk, may lose principal. Beginners should only buy R1/R2.
- ❌ Redeeming fixed-term WM early → Early redemption may lose interest. Confirm when you'll need the money before buying.
- ❌ Keeping all your money in one bank → Deposit insurance only covers RMB 500,000. Spread amounts above RMB 500,000 across multiple banks.
- ❌ Chasing high-yield products → Wealth management products yielding above 6% carry extremely high risk. Beginners should only buy 3-5%.
- ❌ Ignoring liquidity → Fixed-term WM cannot be redeemed when you urgently need cash. Keep 20-30% in demand WM.
- ❌ Buying structured deposits without reading the terms → Structured deposit returns are uncertain; check the "guaranteed minimum return".
- ❌ Buying insurance wealth products → "Investment-type insurance" sold by insurers has poor liquidity; surrendering early loses money.
- ❌ Borrowing money to buy wealth products → Investing should only use idle money; it must not affect your life.
- ❌ Not rolling over investments → After wealth products mature, funds sit idle if you don't reinvest.
- ❌ P2P collapses → Stay completely away from P2P. China's P2P has been wiped out, and overseas P2P risk remains extremely high.
十、FAQ
Q1: How much starting capital do I need?
A: From RMB 1 (demand WM). Fixed-term WM starts from RMB 1. Large-denomination CDs start from RMB 200,000.
Q2: Is bank wealth management safe?
A: R1/R2 products carry almost zero loss risk. The underlying assets are bonds/deposits. But if you buy R3/R4/R5, there is loss risk.
Q3: When is the best time to buy?
A: You can buy at any time. During rising-rate cycles, buy demand WM (flexible); during falling-rate cycles, buy fixed-term WM (lock in high returns).
Q4: What is the difference between large-denomination CDs and fixed deposits?
A: Large-denomination CDs can be transferred (you can transfer them in the bank app when you urgently need cash), while fixed deposits cannot be withdrawn early (early withdrawal is paid at the demand rate).
Q5: Can I still do P2P?
A: Stay completely away from P2P. China's P2P has been wiped out, and overseas P2P risk remains extremely high. Use bank wealth management/bond funds instead.
十一、30-Day Action Checklist
Week 1: Learn + Open an Account
- [ ] Learn the basics of bank wealth management
- [ ] Download a bank app (China Merchants Bank/WeBank)
- [ ] Register an account + link a bank card
- [ ] Complete the risk assessment (Steady type)
Week 2: Select Products + Buy
- [ ] Review the wealth management product list (R1/R2 level)
- [ ] Compare returns/terms/liquidity
- [ ] Buy wealth management products (e.g., RMB 50,000 demand WM + RMB 100,000 fixed-term WM)
- [ ] Confirm the purchase succeeded
Week 3: Settings + Mindset
- [ ] Set maturity reminders
- [ ] Set rollover investment reminders
- [ ] Forget the account and keep working/living
- [ ] Make a long-term plan (hold 1-3 years)
Week 4: Review + Optimize
- [ ] Check that purchases succeeded
- [ ] Review your wealth management product holdings
- [ ] Adjust the allocation (demand + fixed-term + large-denomination CDs)
- [ ] Draft next year's wealth management plan
🎯 Summary
Bank wealth management is the most stable investment approach for ordinary people — extremely low risk, returns above deposits, and simple to operate.
Key points:
- ✅ Extremely low risk: R1/R2 products carry almost zero loss risk.
- ✅ Returns above deposits: 3-5% annualized, far above the 1.5-2.5% of deposits.
- ✅ Simple to operate: One-tap purchase in the mobile app, no professional knowledge required.
- ✅ Stay completely away from P2P: High collapse rate, principal can go to zero.
Take action now: 👉 DigitalMarket.World
Complete resources:
- 📚 Wealth management product database
- 🛠️ Return calculator
- 📊 Bank return comparison
- 💰 Portfolio strategy templates
- 📝 Asset allocation tutorial
Start your bank wealth management journey today!
Disclaimer: The content of this article is based on historical data and real cases and does not constitute investment advice. Markets carry risk; invest with caution.
Data source: DigitalMarket.World
Author: DigitalMarket.World | August 2025
Top comments (0)