Name
Education savings
Introduction
Education savings refer to a special personal term deposit characterized by small deposits for lump withdrawal, enjoy preferential interest rate and can be exempt from interest tax within a certain limit. The principal is deposited month by month with a fixed amount each month, and the customer can withdraw the principal and interest in a lump sum at maturity by virtue of his passbook and the certificate provided by his school certifying that he is receiving non-compulsory education (the certificate must be valid in the same year, and one certificate can only be granted the preferential interest rate once).
Features
1. Flexible Deposit Term
It is a kind of savings that combines the deposit method of small deposits for lump-sum withdrawal and the interest rate of lump-sum term deposit and is specially tailored to children's education. You can plan and set the savings term by yourself depending on the education progress and current conditions of your children, so as to enjoy high interest rate and be exempted from interest income tax. The savings term can be divided into three grades, namely, one year, three years and six years.
2. Fixed Deposit Amount
When opening account, you and the bank can agree upon the fixed amount to be deposited each time according to your current economic strength. The minimum initial deposit amount is RMB 50, and the maximum sum of principal and interest is RMB 20,000.
3. Preferential Interest Rate
When the deposit matures, the depositor can enjoy the interest rate of lump-sum term deposit by means of the student identity certificate (this certificate can prove that the depositor is receiving non-compulsory education) uniformly printed by the provincial office of State Administration of Taxation in the place where the school is located and issued by the school where the depositor is receiving non-compulsory education. In case of any adjustment of the interest rate during the savings term, the interest will be calculated and paid based on the appropriate interest rate of term deposit as quoted on the day of opening account, rather than calculated on a multi-stage basis.
4. No Tax on Interest
If the principal falls within RMB 20,000, no tax will be levied on the interest.
Target Customers
Education Savings apply to students who are receiving non-compulsory education, such as in full-time high schools (technical secondary schools). Junior college and regular college students, master degree candidates and doctoral candidates can enjoy the interest tax exemption and preferential interest rate for RMB 20, 000 education savings once in the three learning stages respectively.
Process
The customer goes through relevant procedures at the counter of any branches of Bank of China with relevant identity documents.
Required Identity Documents
Hukou book or ID card of the customer (student).
Kind Reminder
1. If the depositor omits to deposit any amount during the process, he or she shall supplement the difference in the next month; Failure to supplement the deposits will be deemed as a breach, and the portion deposited following such breach will be deemed as the interest rate of current savings.
2. Where the depositor fails to provide the aforesaid certificate, the interest will be calculated and paid according to the actual savings term and the interest rate of installment savings deposit in the same period and in the same grade as quoted on the day of opening account.
3. In case the depositor is able to provide the aforesaid certificate when making withdrawal in advance, the interest will be calculated and paid in accordance with the actual savings term and the interest rate of lump-sum term deposit in the same grade as quoted on the day of opening account. If the depositor is unable to provide the certificate, the interest shall be calculated and paid in accordance with the actual savings term and the interest rate of current savings as quoted on the withdrawal day.
4. If the deposit is not withdrawn at maturity, the interest for the overdue portion shall be calculated and paid according to the interest rate of current savings as quoted on the withdrawal day.
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