The Financial Services Commission said on the 28th that applications to enroll in the Youth Future Savings will be accepted from the 29th to the 3rd of next month, regardless of birth year.
Youth Future Savings is a three-year, free-installment product that allows people ages 19 to 34 to make deposits flexibly up to a monthly limit of 500,000 won. The government supports 6% or 12% of the deposit amount as a contribution, and interest income tax is also exempt. Reflecting the interest rate, government contributions, and tax-free benefits, the standard type is a simple-interest savings product at an annual rate of 13.2% to 14.4%, and the preferential type is 18.2% to 19.4%.
Young people who wish to enroll can apply non-face-to-face through applications (apps) of all banks and handling institutions such as Korea Post. Enrollment screening, including verification of personal and household income, will be conducted without separate documents. Application hours are from 9 a.m. to 6:30 p.m.
Eligible applicants are young people ages 19 to 34 who meet income or revenue requirements. Young people who turn 35 between the end of this enrollment period and the second enrollment period (tentatively December this year) may face limits on additional enrollment opportunities. For those who served in the military, the service period is excluded from age calculation. Income for the previous year must be verifiable. Employees of small and medium-sized enterprises (SMEs) who meet certain requirements, newly hired SME employees, and small business owners can enroll in the preferential type with a 12% government matching rate.
After applying, eligibility screening will take place from the 6th to the 24th of next month. The Korea INclusive Finance Agency (KINFA) plans to notify applicants of the screening results individually on July 24. Those who pass the screening can open an account for two weeks from the 27th of the same month to Aug. 7, and can make deposits freely after opening the account. Dual enrollment in the Youth Leap Account and Youth Future Savings is not allowed. Switching is only permitted during the initial application period, and after enrolling in the Youth Future Savings, a separate request must be made for special early termination of the Youth Leap Account.