For a long time, provident fund loans have been favored by buyers because of low interest rates. Compared with commercial loans, which are often 5% and 6%, the interest rate of provident fund loans remains around 3.25% all the year round, so many people regard provident fund loans as their first choice. The data shows that at present, nearly 654.38+0.5 billion people use provident fund loans to buy houses. However, in recent years, with the continuous improvement of income level, people's calls for canceling the provident fund are getting louder and louder.

Dispute over cancellation of provident fund

Many people think that the function of provident fund is a bit simple. If you don't buy a house, the provident fund is basically useless. Although the provident fund will have interest in your account, it is less than the bank's time deposit interest. Therefore, many people hope that the provident fund can be paid together with wages, so that the living standard will be improved every month, which may be more practical.

There are some experts among those who are in favor of abolishing the provident fund. Economist Huang caused controversy. Huang believes that the actual utilization rate of provident fund is not high at present, and the cancellation of provident fund can reduce the burden on enterprises to a certain extent, which is conducive to the development of small and medium-sized enterprises.

Some entrepreneurs, represented by Dong Mingzhu, also support the abolition of provident fund. In her view, Gree Electric has the ability to provide housing for employees, so employees don't need provident fund at all. However, according to the deposit mechanism of provident fund, enterprises still need to pay 5% to 12% of the provident fund for employees. In view of this situation, Lou Jiwei also agreed to cancel the provident fund. In addition, some experts suggested that the proportion of provident fund should be lowered from 5% to 3%.

Provident fund ushered in "big adjustment"

Now even experts suggest canceling the provident fund. Does this mean that it is not far from canceling the provident fund? This inevitably makes many people worry. Actually, you don't have to worry too much. The state has stated that it will not completely abolish the 202 1 provident fund, but replace it through reform and adjustment.

Some experts put forward new suggestions on this issue. They think that the provident fund can't be used only to buy a house. The reason why these people have such an idea is that housing prices are too high now, and some young people simply can't afford to buy a house. If the provident fund can only be used to buy a house, then the lives of these young people will definitely be affected. In view of the needs of these young people, experts decided to expand the scope of use of provident fund for rational use.

According to this proposal, the provident fund may be adjusted on 202 1, as follows:

Raise the upper limit of provident fund deposit base

At present, more than 60 cities have raised the upper limit of provident fund deposit base, and the upper limit is generally slightly different in different regions. In economically developed areas, the amount is generally higher. In Shanghai, for example, the deposit base of provident fund has been raised from 23,500 yuan to 28,000 yuan, and the upper limit in other regions has been slightly raised, but most of them are around 2,000 yuan.

An increase in the deposit base means an increase in the amount payable. Although the salary was reduced in the current month, it can be obtained at any time in the future, so the salary has also increased accordingly.

Expand the scope of use

In the past, there was no way to use provident fund across regions, but now there are more and more businesses used across regions, which means that the number of regions supporting provident fund applications in China will further increase. For example, Langfang, Hebei Province strongly supports employees to apply for loans with Beijing's provident fund. The introduction of this policy is also based on actual conditions. Beijing's housing prices are high, but there are many people drifting north. Supporting the use of Beijing's provident fund in Hebei Province will not only enable more people to buy houses, but also stimulate local economic development.

In order to rent a house

I believe some people are still worried about renting houses, because the population of renting houses in China has reached 200 million, and renting houses is a big problem among these 200 million people. In order to help you reduce your financial pressure, experts suggest using the provident fund for renting a house, which can reduce part of your burden.

Used to renovate the house.

Many people's hometown is in the countryside, and they all have their own homestead in the countryside, and they also have their own houses on the homestead. If so, everyone can use the money to decorate the house. In the process of decorating the house, everyone can use this money to reduce their burden without worrying about the house problem.

Used to install elevators.

With the end of shed reform, many old communities have ushered in the old reform. In the process of old renovation, many old communities will install elevators. Starting this year, you can also withdraw the provident fund by installing elevators. In fact, many cities began to implement this policy in 2020.

For decoration

Young people bought a house and wanted to decorate their favorite style. Now it is too expensive to decorate a house, reaching hundreds of thousands at every turn. Seeing so much money, some young people have begun to worry, because millions of dollars have been spent on buying a house. Where is the money to decorate now? If everyone is in this situation, then don't worry, the provident fund can help you solve this problem.

Used for reimbursement of serious illness expenses.

As we all know, serious diseases will bring great trouble to families, because treating these diseases requires a lot of medical expenses, so some people don't want to treat them at all. However, during the treatment period, everyone can be reimbursed through medical insurance, and within one year after medical insurance reimbursement, everyone can also apply for provident fund.

Provident funds can be withdrawn.

For those who have no need to buy a house, their attitude towards the provident fund is that they will always be in their accounts and will not take out the provident fund on their cards. Putting the provident fund into this account will not cause any loss, but will also generate corresponding interest. But in fact, if you leave the provident fund in your account, it is not cost-effective not to withdraw it.

In short, although the deposits in the provident fund account will generate interest, the annual interest rate is very low, only 1.7 1%. If we go to the bank and deposit our money as a time deposit, the annual interest rate can exceed 3%. From this comparison, we can see that putting money into the provident fund account will actually cause interest losses. Therefore, I suggest that if there is no long-term demand for housing, the money in the housing provident fund account can be taken out, deposited in the bank, or used for other financial investment.

In this case, it is naturally impossible to cancel the provident fund, and it can be seen from the national provident fund reform that the state pays more and more attention to the welfare of the provident fund. Before, many experts and entrepreneurs thought that the provident fund should be abolished, because in the past, the provident fund could only be used for housing loans, and the utilization rate was low. But now, the deposit base of the provident fund has not only increased, but also the scope of use has been expanding, which also means that the provident fund will play a greater role in our lives, and the utilization rate of the provident fund is also increasing.