Is it better to buy bank financial products or government bonds? What are the characteristics of government bonds?

I believe that more and more friends now have financial management awareness. Which financial product should we choose? Is it better to buy bank financial products or government bonds? Generally speaking, the yield of government bonds is only slightly higher than that of fixed deposits. And the term is long and the time is fixed. To learn more, let's start with the characteristics of government bonds!

Contents of this article

1. Is it better to buy bank financial products or government bonds?

2. What are the characteristics of government bonds?

3. What kind of income does government bond interest income belong to?

Is it better to buy bank financial products or government bonds?

The yield of government bonds is only slightly higher than that of fixed deposits. Moreover, the term is long and fixed. You have to keep the money for up to 5 years to earn a return of about 5%. However, bank financial products are highly controllable, with a long or short term, and can be flexibly adjusted according to your own needs for the use of funds. Some banks have high returns on financial products.

What are the characteristics of national debt?

1. From the perspective of the subject of legal relations: the creditors of national debt can be citizens, legal persons or other organizations at home and abroad, or the government of a country or region and international financial organizations, while the debtor can generally only be a country.

2. From the nature of the legal relationship: the occurrence, change and elimination of national debt legal relations largely reflect the unilateral will of the state. Although compared with other financial legal relations, national debt legal relations are equal legal relations, compared with general creditor-debtor relations, they reflect a certain degree of subordination, which is more obvious in the national domestic debt legal relations.

3. From the perspective of legal relationship realization: government bonds are the creditor-debtor relationship with the highest credit rating and the best security.

4. From the debtor's perspective: government bonds are characterized by voluntariness, compensation, and flexibility.

5. From the creditor's perspective: government bonds have the characteristics of security, profitability, and liquidity.

What kind of income is the interest income from government bonds?

It belongs to investment income.

Treasury bond interest income refers to the interest income obtained by enterprises from holding treasury bonds issued by the financial department of the State Council. At the same time, the interest income of treasury bonds is tax-free. The first article 12 of the "Treasury Bonds Regulations of the People's Republic of China" issued by the State Council in 1992 stipulates that the interest income of treasury bonds enjoys tax-free treatment. The current "Implementation Rules of the Provisional Regulations on Enterprise Income Tax" also stipulates that the interest income of taxpayers who purchase treasury bonds shall not be included in the taxable income.