Youth Leap Account Applications Open in July, Offers Up to 9.54% Annual Interest Rate
The Korea Financial Empowerment Agency (Korea Financial Services Agency) announced on the 30th of last month that it will receive applications for the 'Youth Leap Account,' which supports asset formation for young people, from July 1st to July 11th, for a total of 9 business days.
This policy financial product aims to effectively support the long-term asset formation of the youth.
The Youth Leap Account is targeted at individuals aged 19 to 34 who meet certain income requirements.
Eligibility requires a total income of 75 million won or less, or comprehensive income of 63 million won or less, and a household median income of 250% or less.
If account holders save up to 700,000 won per month, the government provides a matching subsidy of 3% to 6%.
The greatest attraction of this product is its high rate of return. When combining bank interest, government contributions, and tax benefits, account holders can enjoy an annual interest rate effect of up to 9.54% based on regular savings.
In reality, if one consistently contributes a maximum of 700,000 won per month for five years, they can form over 50 million won in assets by adding their own contribution of 42 million won, government contributions of 8 million won, and tax benefits.
Youth Leap Account Popularity Continues, Application Methods and Schedule Announced
In June alone, 126,000 people applied for the Youth Leap Account, and a total of 3.353 million applications have been completed so far.
Among them, 2.126 million individuals have actually opened accounts, which is close to the government’s initial target of 3.04 million.
Young people wishing to enroll can apply through the banking apps of institutions such as KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank, NongHyup Bank, 기업은행 (IBK), Busan Bank, iM Bank, Gwangju Bank, Jeonbuk Bank, and 경남은행 (KJB) during the monthly application period.
After applying, a verification process for eligibility must be completed before the account can be opened.
Among applicants in July, single-person households can open accounts from July 17th to August 8th, while households with two or more members can open accounts from July 28th to August 8th.
For more detailed information about the Youth Leap Account, please visit the Youth Leap Account website or the Korea Financial Services Agency website, or contact the Financial Empowerment Call Center or the call centers of participating banks.
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