What does the annual interest settlement of provident fund mean?

The annual interest settlement of the provident fund means that the money in the provident fund account pays interest once a year, and the interest is settled on June 30 every year. After interest settlement, it will be directly deposited into my provident fund account, and there will be a corresponding SMS notification to tell you how much interest is generated by interest settlement every year.

The specific answer is as follows:

First, the provident fund pays interest once a year, and the money in the provident fund bears interest, but this interest will not be calculated all the time, but will be paid once a year. The interest deposited in the current year is calculated at the current interest rate, and the principal and interest of the housing provident fund carried forward from the previous year is calculated at the three-month lump-sum interest rate. If you withdraw money from the provident fund, the default is to withdraw the previous deposit first.

Second, all the money settled in the provident fund will be transferred to the employee's personal account, that is to say, after the interest is settled in the provident fund account, the interest will also be directly deposited in the provident fund account, and users can check the details in their own provident fund account after the interest is settled.

Three, the provident fund interest settlement is divided into two parts, one part is the part of the previous year's balance, and the bank will settle the interest for three months on a regular basis; The other part is this year's monthly deposit, which is settled according to the bank's current interest and rolled into the balance at the end of this year. In the case of withdrawal, the previous part is generally withdrawn.

Fourthly, since the housing provident fund is deposited in the employee housing provident fund account, the interest will be calculated according to the benchmark interest rate of one-year time deposit of the People's Bank of China.