Money supply in China exceeded 100 trillion yuan ($16.13 trillion) at the end of the first quarter this year. Inflation fluctuated along the benchmark interest rate in the same period, adding concern that assets in the form of bank deposits may not keep up with price hikes.

China has seen a boom in wealth management products (WMPs) and off-balance-sheet financing that promise better returns for investors. The value of bank-issued outstanding WMPs in China stood at 7.6 trillion yuan at the end of 2012, with an annualized return rate of 4.11 percent, about one percentage point higher than fixed one-year interest rates.

However, this high-yielding alternative to traditional bank deposits has raised suspicion as they are believed to be increasingly used to repay loans whose borrowers would otherwise default.

Such concern grabbed national attention late last year when a WMP sold by Huaxia Bank failed to pay its annualized return and a product offered by CITIC Trust delayed payments.

Those cases prompted moves by China's banking regulator to tighten oversight over WMPs to increase transparency and reduce risk.

Despite potential risks in these products, bank-offered WMPs remain a popular choice among investors.

However, these products are favored not for their ability to manage assets, but instead out of the belief that banks will bail out should losses occur, said Lei Wei, a financial expert with the Development Research Center of the State Council.

That's what makes Cai and many others think banks' offerings are a much safer choice.

However, experts think differently, saying a high yield always comes with high risks.

"The chase for a better return without accepting corresponding risks will bring distortions to the wealth management market," Lei said.

Regulators should step up oversight and create multi-layered wealth management business that match returns with risks, added Renmin University's Zhao.