Unless the bank or insurance company goes bankrupt, education fund insurance is as risk-free as "education savings".
In the bank for "education savings" enjoy two benefits:
1. Tax exemption: interest tax is exempted.
2. Preferential interest rate: the one-year and three-year education savings will bear interest according to the interest rate of lump-sum and lump-sum time savings deposits of the same grade in the same period on the account opening date; The six-year term shall bear interest at the five-year lump-sum deposit rate on the account opening date.
The difference between handling "education savings" in banks and buying education fund insurance in insurance companies is mainly manifested in the following aspects:
First of all, "education savings" is subject to some restrictions:
1. limit: education savings can only enjoy 20,000 yuan tax exemption and interest rate concessions in secondary schools (full-time senior high schools), universities (junior colleges) and graduate students respectively, that is, each person can enjoy three discounts at most, with a maximum limit of 60,000 yuan.
However, there is no limit on the amount of education fund insurance, and you can buy as much as you want.
2. Education restriction: children can only enjoy the preferential policies provided by "education savings" once without going to college, and can only enjoy the preferential policies provided by "education savings" twice without going to graduate school.
If you buy education insurance, as long as the child reaches the corresponding age, you can receive education funds and bonuses: 16-25 years old, or 16-30 years old, but it is not required to have the corresponding academic qualifications. Education grants and bonuses are also tax-free.
3. Limitation of saving methods: "Educational savings" can only be used for one-year, three-year and six-year time deposits. You can't save 20 thousand at a time (otherwise you won't enjoy preferential policies)
When purchasing education fund insurance, you can pay the insurance premium on an annual, quarterly and monthly basis, or you can pay all the insurance premiums at one time, from the birth of the child until he 17 years old.
4. Ineffective interest rate: If the interest rate of "education savings" is adjusted during the deposit period, it will still bear interest at the interest rate on the account opening date. ?
However, if there is dividend in education insurance, the dividend can avoid the risk of bank interest rate reduction (insurance companies can use more funds to buy securities and leave less funds in banks); On the other hand, if the bank's interest rate increases, the education bonus will also increase.
Two, education insurance can be "reinsurance":
You can attach a "premium exemption" clause to the education fund insurance, namely:
Before starting to receive the education grant, if the insured (that is, the child's father or mother) dies unfortunately or is completely disabled, the insurance premium for subsequent periods can be exempted, which is regarded as payment, and the child will receive the education grant and bonus in full when it expires.
In this sense, education fund insurance gives children more protection than education savings.