Financial Services Commission to Launch Youth Hope Savings on the 21st with an Annual Interest Rate of Around 9%

[Asia Economy Reporter Song Hwajeong] The Youth Hope Savings, which offers effects similar to a regular savings account with an interest rate of about 9% through tax exemption on interest income and support for savings incentives, will be launched.

According to the Financial Services Commission on the 7th, the Korea Inclusive Finance Agency and banks handling the Youth Hope Savings will sign an agreement on the 8th to launch and operate the Youth Hope Savings. Following this agreement, a 'Youth Hope Savings Preview' will be operated from the 9th to the 18th to allow potential subscribers to check their eligibility in advance, and on the 21st, the Youth Hope Savings will be officially launched at 11 banks (KB Kookmin, Shinhan, Hana, Woori, NongHyup, Industrial Bank of Korea, Busan, Daegu, Gwangju, Jeonbuk, and Jeju Bank).

The Youth Hope Savings was promoted through the Youth Special Measures in August last year and the '2022 Financial Services Commission Work Report.' Eligible subscribers are youths aged 19 to 34 as of the subscription date, with a total salary of 36 million KRW (comprehensive income amount of 26 million KRW) or less in the previous tax period (January to December 2021). However, those who were subject to comprehensive financial income taxation at least once in the past three years are restricted from subscribing.

The Youth Hope Savings is a savings product that allows flexible monthly deposits up to 500,000 KRW, with a maturity of 2 years. If deposits are made until maturity, in addition to the market interest, a savings incentive will be additionally provided (supported by the budget). The savings incentive is 2% of the first-year deposit amount and 4% of the second-year deposit amount. If 500,000 KRW is deposited monthly for 2 years, a maximum savings incentive of 360,000 KRW will be provided. Additionally, interest income tax and the special rural tax on interest income are exempted.

The Youth Hope Savings will be officially launched on the 21st at 11 banks, and subscribers can open only one account by selecting one bank among the handling banks. Subscription is possible both in-person and non-face-to-face.

During the first week of the official launch (21st to 25th), a 5-day rotation subscription system will be applied based on the birth year. Those born in 1991, 1996, and 2001 can subscribe on the 21st; those born in 1987, 1992, 1997, and 2002 on the 22nd; those born in 1988, 1993, 1998, and 2003 on the 23rd; those born in 1989, 1994, and 1999 on the 24th; and those born in 1990, 1995, and 2000 on the 25th.

Those wishing to subscribe can check their eligibility in advance through the Youth Hope Savings Preview from the 9th to the 18th. Participants in the preview can subscribe immediately at the bank where they previewed the product without going through the eligibility verification process again once the product is officially launched.

This content was produced with the assistance of AI translation services.