What Is a Passbook Savings Account?

Savings account refers to a RMB savings deposit account opened by a natural person in a bank savings institution in the name of a natural person with a valid personal identification for handling fund deposits and withdrawals. The main purpose is to obtain interest income.

saving account

The purpose of a personal savings account is to earn interest income, and the personal savings deposit interest rate is formulated and announced by the People's Bank of China. You can choose the following deposit types according to the frequency of deposits and withdrawals and the amount of funds.

Current savings refers to individuals depositing RMB funds into a bank savings institution. There is no stipulated deposit period. Individuals can renew or withdraw at any time with vouchers issued by the savings institution, and the deposit amount is unlimited.

Entire deposits and withdrawals are deposits between the client and the bank. The principal is deposited at one time, and the principal and interest are withdrawn once due, or the bank deposits in local and foreign currencies are required to be automatically transferred according to the original deposit period. ^[1]

Zero deposit round-up refers to the deposit period agreed upon when the account is opened, the principal is deposited in multiples, and the principal and interest are withdrawn once due. It is characterized by monthly storage, a fixed monthly deposit amount, and is suitable for those who have a fixed monthly income. But a small crowd. If there is any missing deposit in the middle of the zero deposit, it should be replenished in the next month. Those who do not replenish the deposit will be deemed to be in breach of the contract. For the part deposited after the breach, the interest will be calculated at the current interest rate.

Entire deposit and zero withdrawal refers to a type of regular savings in which individuals deposit a large amount of RMB funds at one time, withdrawing the principal on average, and withdrawing interest at maturity.

Defining two livelihoods refers to the one-time deposit of RMB principal by an individual, without stipulating the deposit period, and paying all the principal and interest at one time upon withdrawal. When the number of deposit days reaches or exceeds the corresponding deposit period of the entire deposit and withdrawal (the longest deposit period is one year), the interest rate is determined by a certain percentage of the interest rate grade of the regular integral deposit and withdrawal period that is listed on the date of withdrawal, and the interest is not calculated by segments. When the number of deposit days does not reach the minimum deposit period of the entire deposit and withdrawal, the interest is calculated based on the current interest rate listed on the date of withdrawal.

Deposit and withdrawal of interest refers to a type of deposit in which the principal is deposited at one time, the interest is withdrawn in installments, and the principal is withdrawn upon maturity.

Renminbi notification deposits refer to deposit methods in which depositors do not agree on the deposit period when depositing money. They must notify the bank in advance when making withdrawals and agree to the amount and date of withdrawal. Regardless of the actual deposit period, the notice deposit is divided into two types: the 1-day notice deposit and the 7-day notice deposit. The characteristic of this type of deposit is that if you have a large amount of short-term idle funds, you can obtain higher interest income on the basis of maintaining liquidity.

The last is education savings, which refers to the types of preferential savings offered only to students in grades 4 and above in primary schools. When opening an account, the depositor shall agree with the bank on a fixed monthly deposit amount, which shall be deposited in several installments. If there is any missing deposit on the way, it shall be replenished in the following month; those who do not make deposits shall be deemed to be in breach of contract. Interest is calculated at the same rate as the demand deposit, and interest income tax on savings deposits is levied. When withdrawing, only with the passbook and the identity certificate of the student who is receiving non-compulsory education provided by the school (must be a valid certificate of the year, and one certificate can only enjoy one interest rate discount). Withdrawing the principal and interest at one time can enjoy the nationally prescribed interest rate And exemption from interest tax concessions.