Every bank must have a reserve fund, and the reserve fund system is stipulated by the People's Bank of China. The names of reserve funds in each bank are different. Here are a few examples, such as China Guangfa Bank’s Caizhi Fund, Shanghai Pudong Development Bank’s Universal Fund, and Bank of Communications’ Haoxiangdai.

1. The role of bank reserves

Bank reserves, simply put, are credit loans provided by banks, which are open to customers who meet different conditions. It can be regarded as an upgraded "cash installment" business, and its repayment method and profit model are the same as cash installment. Borrowers can repay in multiple installments of 3, 6, 12, 24, 36, etc. There is no interest, but varying proportions of handling fees will be paid depending on the number of periods. Taking the 12-term payment option that cardholders often choose as an example, the general handling fee is between 0.7% and 0.8%. These reserve fund businesses can help borrowers improve their creditworthiness, and can also increase credit card and bank credit limits. Banks can also charge interest on them, which is a good business.

2. Application for bank reserve funds

In fact, under normal circumstances, many banks require users with good reputation to apply for their own reserve funds, so there are always some users who will I received a call from the bank’s customer service, indicating that the bank still has some reserve funds, and customers can apply for it if they need it. This is actually the bank’s promotion to users. Nowadays, many banks have their own mobile banking, and there are also application channels in mobile banking. Generally, there is a word about personal reserve fund. After clicking on the application, the bank will review the applicant's qualifications, and if the application is approved, the loan will be issued. Many people think that if they don't borrow money, then their credit report is good, but their credit is not the best. In fact, this is not the case. In fact, if you borrow and repay when you borrow, your credit will be the highest, and you will borrow more money when you borrow in the future.

3. Make a decision based on your actual situation

Of course, some banks will not consider the user's situation and are just promoting it to their customers. Then when you hear it, think about whether it is really necessary. If you really need it, then open it. If you really don’t need it, then there is no need to apply.