An article to understand "provident fund" Xiaomei just graduated from college this year. Facing the increasingly severe employment pressure, most of Xiaomei's resumes were in vain. In desperation, she went to a small private company for an interview. During the interview process, the company told Xiaomei

It only guarantees the payment of the "five insurances", but will not purchase the "one fund". Xiaomei thought that since her salary is low, the provident fund she pays will not be high. If the part of the provident fund paid is included in the monthly salary, then

The salary I received would be correspondingly higher, so I agreed to the company's approach.

Putting aside the fact that the provident fund is compulsorily paid according to national policy, Xiaomei readily agreed to the company's approach, but it was caused by a lack of understanding of the provident fund.

So what exactly is a “provident fund”?

Provident fund generally refers to housing provident fund. Just by looking at its name, you can tell that this fund is linked to housing.

It is an individual housing consumption fund established through the method of "individual storage and unit funding" in accordance with national policies and is specifically used for individuals to pay housing expenses.

Long-term housing savings are equal contributions from the company, so you pay half of the provident fund yourself, and the company pays the other half in equal amounts.

For example: Xiao Ming, who is in college, has taken a fancy to a Mac notebook priced at 10,000 yuan. In order to guide Xiao Ming to develop the habit of saving, his parents made an agreement with Xiao Ming that every month Xiao Ming would spend 20% of his pocket money, that is,

400 yuan, and the parents also allocated the same amount of funds and deposited them into the "Mac Special Fund" account. In this way, Xiao Ming can use this "special fund" to buy the laptop of his choice in about a year.

The same principle applies to provident funds. Employees contribute 5% to 12% of their salary every month (the deposit ratio is determined by the company), and the company also allocates an equal amount of funds every month and deposits them into employees' provident fund accounts.

In this way, employees pay one portion and actually receive two portions of the money.

So is it really so good to use this money to get a loan to buy a house?

Taking Shenzhen as an example, Xiao Ming has grown up and got married at this time, and is considering buying a house. Now, Xiao Ming's provident fund account balance is 50,000, and his wife's provident fund account balance is 30,000. According to the "provident fund loan limit", the provident fund loanable amount is calculated

If the amount is 14 times the balance of the provident fund account, then at this time Xiaoming and his wife can apply for a loan of 14*80,000 = 1.12 million yuan. However, Shenzhen stipulates that the maximum provident fund loan amount for a single house is 900,000 yuan, so

I actually applied for 900,000 yuan, with a loan term of 30 years and a provident fund loan interest rate of 3.25%. If calculated according to "equal principal and interest", the sum of principal and interest to be repaid after 30 years is 1.41 million; while the commercial loan interest rate is 4.9%, also based on "equal principal and interest"

"The sum of principal and interest after 30 years is calculated to be 1.7195 million, which is equivalent to saving nearly 310,000 in provident funds compared with commercial loans.

Getting back to the topic, there is another very important feature of the provident fund, that is, the balance of the provident fund can be offset against the provident fund loan.

There are two specific types: 1. One-time repayment method: refers to withdrawing the balance of the housing provident fund account from the trustee bank once a year. That is to say, Xiaoming and his wife can directly take out 80,000 yuan to offset the loan principal in one go, and repay according to the offset.

The remaining loan principal and repayment period after the loan is recalculated will be the monthly repayment amount.

However, it should be noted that after a one-time loan repayment, the monthly repayments need to use your own funds and cannot use the money in the provident fund account.

2. Monthly repayment method: refers to the method of withdrawing money directly from the personal provident fund account every month to repay the principal and interest of the loan for that month.

If Xiao Ming and his wife have 5,000 yuan in their monthly provident fund account, which is 60,000 yuan a year, and they can freely use the 60,000 yuan in disguise, then it is equivalent to 1.8 million yuan in 30 years (not considering the time value of money).

Suddenly, I understand a little bit: "Be friends with time".