Savings and Deposit Products to Grow Allowance Received from Children During Chuseok

Photo by Getty Images Bank

Banks are introducing various savings and deposit products for minors to secure future customers. These products are worth considering if you plan to use the allowance your children received during Chuseok for financial education or to save a lump sum.

According to KB Kookmin Bank on the 2nd, the 'KB Young Youth Children's Account' is a deposit product with free withdrawals and deposits. It is tailored for children under 14 years old with a real-name individual account. The account offers a special preferential interest rate on the savings box within the account and free early childhood education services. The savings box amount can be set up to a maximum of 1 million KRW, and a special annual interest rate of 2% is applied to the registered savings box amount.

For teenagers, the KB Young Youth Youth Account is available. The eligible age is between 14 and 19 years old, and it is a deposit product with free withdrawals and deposits. This product provides an airline mileage accumulation service. If you agree to the additional services as an Asiana Club member, you will receive 1 Asiana Club partner mileage per 100,000 KRW average monthly balance in the previous month of this account (up to 3,000 miles per month).

Shinhan Bank offers the 'Shinhan My Junior Savings.' The eligible customers are individuals under 18 years old, with a savings limit of at least 10,000 KRW for new deposits and up to 1 million KRW per quarter in a flexible installment savings plan. The basic interest rate is 3% per annum, with preferential interest rates up to 1.0%, allowing a maximum annual interest rate of 4%. The preferential conditions include holding a subscription savings account (0.5%), automatic transfer (0.5%), child allowance preferential rate (0.3%), check card usage performance preferential rate (0.3%), and re-deposit (0.1%).

Additionally, Hana Bank's ‘Ai Kkum Hana Savings’ offers special interest rates in special years such as the child's birth or school entrance, with a maximum interest rate of 3.75%. The subscription amount ranges from 1,000 KRW to 1.5 million KRW. Woori Bank's ‘Woori Ai Happiness Savings 2’ offers an annual maximum interest rate of 4.40% within a monthly limit of 500,000 KRW.

KakaoBank's financial service for teenage customers, 'mini,' is also worth considering. KakaoBank mini is a prepaid electronic payment method that works like a check card where you pre-load allowance money to use. The holding limit is 500,000 KRW. Last month, KakaoBank lowered the minimum subscription age from 14-18 years old to 7-18 years old. If you are using mini, you can also use the 'mini 26-day savings' product, which allows you to save between 500 KRW and 2,000 KRW daily for 26 days. KakaoBank is also running an event until December 31st that gives bonus cash to those who start the mini 26-day savings challenge.