Education savings refers to the special savings that individuals open accounts in designated banks and deposit a certain amount of funds for educational purposes according to the relevant provisions of the state. It is a special savings for students to pay the education funds needed for non-compulsory education. Education savings are registered in real-name registration system. When opening an account, the depositor should hold his/her (student's) household registration book or ID card and go to the bank to open a deposit account in his/her own name. At maturity, the depositor needs to withdraw the principal and interest in one lump sum with the passbook and relevant certificates.

In order to strengthen and standardize the tax-free management of educational savings, State Taxation Administration of The People's Republic of China, the People's Bank of China and the Ministry of Education jointly issued the "Implementation Measures for Exempting Individual Income Tax from Interest Income from Educational Savings Deposits", which came into effect on June 1 2005. Educational savings refers to individuals who open accounts in designated banks in accordance with relevant state regulations and deposit a certain amount of special savings for educational purposes. For primary and secondary school students, the deposit period is divided into three years and six years. It's a fixed deposit in installments, and the minimum deposit for each household is 50 yuan. The directional use of education savings is a special savings for students to pay the education funds needed for non-compulsory education. The interest rate of education savings enjoys two preferential policies. In addition to the exemption of interest tax, as a zero deposit and lump sum deposit, you will enjoy lump sum deposit and lump sum interest with a preferential interest rate of more than 25%. Education savings are registered in real-name registration system. When opening an account, the depositor should hold his/her (student's) household registration book or ID card and go to the bank to open a deposit account in his/her own name. At maturity, depositors need to withdraw the principal and interest in a lump sum from commercial banks with their passbook and the original admission notice for non-compulsory education or school certificate. It is understood that since 1999, the state resumed the collection of personal income tax on the interest income of savings deposits (hereinafter referred to as interest tax), the tax-free management of educational savings has always been a weak link in the collection and management of interest tax. Because depositors open accounts in savings institutions, use false or unqualified documents to open accounts, and use false or irregular documents to withdraw principal and interest, some savings institutions even absorb deposits in the name of educational savings to complete their savings tasks, which has caused certain adverse effects on the country's financial and tax order and caused the loss of national tax revenue. This method standardizes the tax-free management of education savings from the following aspects: subject qualification, amount of education savings, account opening, deposit term, interest rate concessions, certificate management, withdrawal of education savings, follow-up management of tax authorities and savings institutions, and legal responsibility for illegally handling education savings. First, on the basis of the original maximum amount of education savings of 20,000 yuan, the amount of education savings has been clearly refined. The Measures stipulate that those who enjoy the preferential policy of exemption from interest tax must be students who are receiving non-compulsory education. When studying in a full-time senior high school (technical secondary school), undergraduate (junior college), master's degree or doctor's degree, you can enjoy the preferential tax-free policy of 20,000 yuan for education savings in each learning stage, and the total principal of education savings in each stage does not exceed 20,000 yuan. If the total principal exceeds 20,000 yuan or the principal is deposited in one lump sum, the preferential policy of tax-free education savings shall not be enjoyed. The second is to clarify the printing, collection, distribution and use of students' identity certificates (hereinafter referred to as "certificates") who are receiving non-compulsory education. The "Measures" stipulate that before the expiration of education savings, depositors must hold a passbook, household registration book or ID card to issue a "certificate" to their school; The "Certificate" is printed by the State Taxation Bureau of all provinces, autonomous regions, municipalities directly under the Central Government and cities under separate state planning, and is collected by the school at the local tax authorities; "Certificate" in triplicate, kept by the school, provided to savings institutions, and submitted to the competent tax authorities respectively; When the education savings expires, the depositor shall draw the principal and interest with the passbook, residence booklet or ID card and "certificate", and the savings institution shall carefully examine and approve, give tax-free preferential treatment to those who meet the conditions, and affix the seal of "having enjoyed the education savings preferential treatment" on the "certificate". The "Measures" particularly emphasize that for schools that provide "certificates" to taxpayers and withholding agents in violation of regulations, the tax authorities may impose a fine of less than 1 times the amount of individual income tax; If a savings institution fails to handle education savings in the name of education savings, resulting in withholding tax, it shall recover the tax payable from the taxpayer and impose a fine of more than 50% and less than 3 times the tax withheld on the withholding agent.