'Annual 9% Interest Effect' Cheongnyeon Hope Savings, How to Join?

[Asia Economy Reporter Song Hwajeong] The Youth Hope Savings, which offers effects similar to a general savings account with an annual interest rate of around 9% through tax exemption on interest income and savings incentive support, will be launched on the 21st. Since the 9th, a 'preview' service has been available to check eligibility for subscription in advance.

According to the Financial Services Commission on the 12th, the Youth Hope Savings will be officially launched on the 21st at 11 banks (KB Kookmin, Shinhan, Hana, Woori, Nonghyup, IBK, Busan, Daegu, Gwangju, Jeonbuk, Jeju Bank).

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

The eligibility for subscription is for youth 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 subject to comprehensive financial income taxation at least once in the past 3 years are restricted from subscribing. Only one account can be opened by selecting one of the 11 participating banks. Subscription is possible both face-to-face and non-face-to-face.

Applicants can check their eligibility for Youth Hope Savings in advance through the preview service until the 18th, and those who participate in the preview can subscribe immediately at the bank where they previewed without going through the eligibility verification process again once the product is officially launched.

The 11 banks have set a basic annual interest rate of 5% with preferential interest rates ranging from 0.2% to 1% points. Among the commercial banks selling Youth Hope Savings, KB Kookmin Bank and Shinhan Bank offer the highest preferential interest rates. KB Kookmin Bank offers up to 1.0% points. Specifically, 0.5% points are given if a monthly salary transfer of 500,000 KRW or more is made to the bank for more than 6 months, 0.3% points if automatic transfer from the bank’s checking account to the savings account is made for more than 6 months, and an additional 0.5% points if the customer has not previously held deposit or savings products at the bank. Shinhan Bank offers up to 1% points, including 0.20% for issuing a Shinhan certificate, 0.30% for linking at least one asset after joining Minibus, 0.50% for salary transfer, and 0.50% if no Shinhan Bank savings account was held in the previous year.

Next is IBK Industrial Bank with 0.9% points. IBK provides 0.3% points each for not issuing a paper passbook, having a monthly salary transfer of 500,000 KRW or more for over 6 months, and having card payment performance of 3 million KRW or more at the bank.

Hana and Woori Banks offer up to 0.7% points preferential interest rates for Youth Hope Savings. Conditions such as salary transfer performance and a certain amount of card usage must be met.

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