Some bank dividend yields exceed 8%, sparking discussions about whether it is better to buy bank stocks than to deposit money in banks.

Since the beginning of this year, domestic deposit rates have been continuously declining, with the 1-year fixed deposit rates of many banks recently falling below 1%, weakening the attractiveness of traditional savings. At the same time, the "bond-like" attributes of bank stocks have become more prominent. As of May 23, out of 42 A-share listed banks, over 70% have a dividend yield of over 4% in the past 12 months, with some banks exceeding 8%, far surpassing the returns from deposits and national bonds. This income gap has triggered a "substitution effect," driving strong performance in bank stocks, with a year-to-date increase of 7.66%. Insurance funds and mutual funds have been increasing their holdings in bank stocks, significantly raising their positions. Looking further ahead, there is a differentiation in the performance of different sectors within the banking industry, with regional banks showing more prominent performance. Industry experts believe that in the short term, a high dividend strategy will continue to drive the increase in bank stocks, while in the medium to long term, the level of interest rate spread and asset quality are key factors.