Structured deposit yields did not meet promotional expectations. Zhenjiang Consumer Association resolved the complaint and issued a consumer warning.

Yangtze Evening News website, March 29 (Xinhua correspondent Chen Hingsheng, reporter Jiang Tiansheng) After consumers bought a bank’s structured deposit product and reached maturity, they found that their actual return was only the minimum value of the advertised yield rate, which did not match what the salespeople had described. Recently, the Zhenjiang Consumer Association received two such complaints.

Consumer Mr. Wang said that last year he spent 3.6 million yuan to purchase a structured deposit product from a bank. At the time, the salesperson claimed that after maturity, the yield rate would most likely reach the product’s yield cap. However, at maturity, the actual return he received, when converted, was only the minimum yield rate.

Similarly, consumer Ms. Wang spent 3.4 million yuan to buy a structured wealth management product. After maturity, the yield, when converted, was also the minimum yield rate.

The Zhenjiang Consumer Association learned from its investigation that due to changes in market conditions, the product ultimately triggered the minimum yield condition, and the return was lower than the interest rate on a fixed deposit. Through mediation, both sides reached a settlement agreement.

A structured deposit refers to deposits absorbed by commercial banks that embed financial derivative products. By embedding financial derivative instruments such as forwards, swaps, and options into an ordinary deposit, the depositor’s returns are linked to underlying assets such as interest rates, exchange rates, stock prices, and commodity prices. On the basis of assuming a certain level of risk, it provides corresponding returns. It has both deposit and financial derivative investment attributes: the principal-protected portion ensures the safety of the principal, while the derivative portion obtains floating returns through fluctuations in the performance of linked market indicators. The actual yield rate depends on how the linked underlying performs, and it has the characteristic of “principal protection but not return guarantee.”

Pursuant to Article 8 of the Consumer Protection Law, consumers have the right to learn the true circumstances of the goods they purchase or use, or the services they receive. Article 17 of the “Implementation Measures for the Protection of Financial Consumers’ Rights and Interests by the People’s Bank of China” also clearly requires that when banks and payment institutions disclose information about financial products and services, they must use ways that are easy for financial consumers to understand. For core information involving interest rates, fees, returns, and risks, it must provide in-depth explanations of key terms based on the complexity of the products and services and the risk level, and ensure that financial consumers have confirmed receipt of complete information. In these two complaints, although the bank’s sales personnel provided risk warnings during the sales process, they still told consumers that “after maturity, the yield rate will most likely reach the product’s interest rate cap,” which reflects shortcomings in explaining the product’s risks and returns.

The Zhenjiang Consumer Association reminds financial institutions that, in accordance with Article 26 of the “Jiangsu Provincial Regulations on Consumer Protection,” the actions of an operator’s staff members in the course of performing their duties are deemed the operator’s actions. Financial institutions should strengthen management of sales personnel to enhance their awareness and capability in protecting the rights and interests of financial consumers. When sales personnel sell financial products and services, they must also comply with relevant regulations to ensure the compliance of sales activities, fully disclose information about products and services—especially key information closely related to the interests of financial consumers—and avoid exaggerated promotions or misleading sales. This is meant to truly protect consumers’ rights and interests.

The Zhenjiang Consumer Association also reminds consumers that when purchasing financial products such as structured deposits, they should carefully read the sections in the product prospectus explaining the return calculation method, fully understand the nature of the product, and clearly identify the possible risks that the product or service may involve, especially the terms governing when the return interest rate is triggered. They should check the product’s historical performance, particularly the distribution of the yield rates actually settled upon redemption. For high-risk products, they should make purchase decisions cautiously based on reasonable risk expectations. If they encounter terms or professional terminology that they do not understand, they should ask the financial institution’s staff to explain them in detail. If a salesperson makes a verbal commitment, it should be put into effect in writing in the contract.