Eight knowledge points about provident funds

Knowledge point 1: Buying a house with provident funds can save the cost of a car

I believe everyone can understand the current housing prices. It can range from four to five million to as many as one million (house prices in the tens of millions are not discussed).

Generally, everyone’s choice is commercial loan or provident fund loan. After all, the full amount is still relatively small.

Why is it said that buying a house with provident fund can save a lot of money?

The interest rate for Provident Fund loans within 5 years is 2.75%, and the interest rate for loans between 6 and 25 years is 3.25%. The interest rate for commercial loans is 4.35% within 1 year, 4.75% within 5 years, and 4.9% for more than 5 years.

Assume a loan of 700,000 and a loan period of 25 years. The interest rate of a provident fund loan is 70*3.25%*25=568,750 yuan; the interest rate of a commercial loan is 70*4.9%*25=857,500 yuan, with a difference of 288,750 yuan.

280,000 is definitely worth buying a mobility scooter.

Reminder: There is a limit on the loan amount. In some places, it is N times (14-30 times) of the provident fund balance. In other places, the limit is 500,000 yuan for a single person and 1 million for a couple ( There are still differences in the amount in different places).

Knowledge point 2: Failure to pay the provident fund is illegal

Article 13 of the "Housing Provident Fund Management Regulations"

The unit should apply to the Housing Provident Fund Management Center Register housing provident fund deposits, and handle the procedures for setting up housing provident fund accounts for employees of the unit.

If the company does not pay the provident fund, it can take the initiative to make a payment request to the unit. If the company refuses to pay, it can be reported to the Housing Provident Fund Management Center (arbitration and courts will not accept it!).

Knowledge point 3: Provident fund will not increase immediately if wages increase

The provident fund declaration base is calculated based on the average monthly salary of employees in the previous year.

To put it simply, employees’ wages will increase this year, but the provident fund will not change, because this year’s provident fund payment base is calculated based on last year’s wages. Only next year will be calculated based on this year's salary (provident fund calculation is one year later).

Knowledge point 4: Immediate family members can withdraw provident funds when buying a house

The latest provident fund usage regulations, children can use their parents’ provident funds to buy a house, and unmarried children can purchase houses living with their parents*** If you live in your own home, your parents can also withdraw the balance of your provident fund account (previously, you had to withdraw it yourself).

Note: Some local policies do not allow it, and some places allow it but have quota limits!

Knowledge point 5: Provident fund withdrawals cannot be used for decoration, paying rent, purchasing shops, and parking spaces

Article 24 of the "Housing Provident Fund Management Regulations" If an employee has one of the following circumstances , you can withdraw the storage balance in the employee housing provident fund account:

(1) Purchase, build, renovate or overhaul self-occupied housing;

Renovation does not constitute overhaul, this should be clear ! Obviously paying rent, purchasing shops and parking spaces also do not belong!

Knowledge point 6: Not all housing provident funds can be withdrawn after resignation

The regulations do not stipulate that housing provident funds can be withdrawn after resignation. Resignation only seals up the provident fund. After finding a new work unit, you can Handle provident fund transfer procedures.

However, there are still special reasons in various places. If you leave the province after resigning, you can withdraw your provident fund - your provident fund account will also be cancelled.

Knowledge point 7: The increase in the maximum amount of provident fund loans will not affect the provident fund loans that have been issued

The amount of provident fund loans that have been issued is based on the approval standards at the time of issuance, even if employees later The increase in the provident fund loan limit will not affect the already approved provident fund loan limit.

Knowledge point 8: The higher the salary, does not mean the higher the provident fund loan amount

There are many factors that affect the loan amount, salary is only one of them, there are other influencing factors: debt , personal credit, down payment, loan term, etc.