Today, we will learn about the terms and application methods for the Youth Leap Account. The Youth Leap Account is one of the policies that helps young people make a lump sum of money. The January membership application period is January 2nd to January 12th, and those who meet the conditions among those who applied for membership in January can open an account from January 18th (Thursday) to February 8th (Thursday). it’s possible.
Find out about the Youth Leap Account, which is a bridge of hope that supports the dreams of young people, which is very helpful in forming various young people’s assets, and if you meet the conditions for the Youth Leap Account, apply right away and enjoy the benefits.
Youth Leap Account
It is a financial product that helps young people aged 19 to 35 save a lump sum of money in the mid to long term. You can pay up to 700,000 won per month, and the maturity date is 5 years. If you pay 700,000 won every month, you will have a lump sum of 50 million won after 5 years.
Even if you do not make an interim payment, your account will be maintained. The interest rate is important; it is a fixed interest rate for 3 years and is subject to volatility for 2 years. We provide tax exemption (interest income tax and special tax for rural areas) on interest income by matching government contributions according to personal income level and the amount paid.
Youth Leap Account Conditions
The conditions for the Youth Leap Account are that you must be a young person between the ages of 19 and 34, and if you have completed military service, the period is added. Therefore, you must submit an additional application form for detailed information. Income requirements include a young person with an annual personal income of 60 million won or less and a household income of 180% or less.
Subscription target
Ages 19 to 34 (as of account opening date)
Personal income requirements (satisfy both of the following)
Total salary for the previous tax period is 75 million won or less.
If the total income added to the comprehensive income tax standard is 63 million won or less (excluding cases where there is only non-taxable income)
Household income requirements (based on the sum of income of household members including the applicant)
Meets 180% or less of the standard median income
In principle, household members are spouses, parents, children, and minor brothers/sisters listed on the applicant’s resident registration certificate.
※ For details on household income verification, including exception cases when judging household members, refer to the Korea Inclusive Finance Agency website.
Youth Leap Account Interest Rate
There are slight differences between banks, but usually the interest rate is 4.5% for 3 years. Preferential interest rates vary by bank, and each bank has its own terms and conditions, so we recommend that you check before making your choice. It would be a good idea to check with your main bank first.
For more information, you can check and compare at the Korea Federation of Banks consumer portal (kfb.or.kr).
Youth Leap Account Contribution Payment Structure by Individual Income
The government pays differential contributions depending on individual income. The lower your income, the less you have to save, so the higher your contribution will be.
As shown in the table above, if an individual with a total salary of 24 million won pays 400,000 won per month, the government will support 24,000 won by applying the contribution matching rate of 6.0%.
A fixed interest rate is applied for 3 years after signing up for the product, and a variable interest rate is applied for the next 2 years (interest rate levels by handling institutions will be announced on the Financial Association website)
Low-income young people (e.g., total salary of 24 million won or less) are given preferential interest rates, which can be checked on the Korea Federation of Banks’ consumer portal.
tax exemption
Another good thing is that you can receive tax exemption! If your annual income is less than 60 million won, you can receive a government subsidy of up to 6% and even receive tax exemptions. All profits are subject to taxes.
Taxes are also incurred on interest or dividends generated through savings and investments, and applying this as a tax exemption is not a small matter. So, if you are thinking of saving a lump sum, it seems like an effective method.
How to apply and sign up for a Youth Leap Account
You can sign up for the Youth Leap Account at 11 commercial banks. You can apply non-face-to-face on bank business days, and once you apply, you will be able to sign up after checking the eligibility conditions. Since you can easily apply for review through each bank app, you can search for financial products through the app.
Support and inquiries for Youth Leap Account subscribers
We provide credit/asset management consulting services to help young people make their first start in society. (Information is being provided through the website of the Korea Inclusive Finance Agency)
Youth Leap Account ☎1397 We operate an early cancellation counseling center within the call center to support young people in forming stable assets. (After calling ☎1397, press 3 and 2 in order to connect)
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Today, we learned about the terms and application methods for the Youth Leap Account. Please note that the Youth Leap Account cannot be combined with the Youth Hope Savings Account, and you must cancel or expire before you can sign up for another product.
Those who meet the conditions for the Youth Leap Account are encouraged to sign up.
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