[AlDonSseulJap] Annual Interest Rate up to 9.54% Product? ... 1 in 4 People Have Subscribed

The 'Youth Leap Account' Returns with Even Stronger Benefits

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Yonhap News

Many people want to manage their finances but are still afraid to invest,

so they think about saving a lump sum first.

Especially at the start of the new year, many people make such financial plans.

But with interest rates falling, you might worry that putting money into low-interest savings or time deposits will just tie up your funds unnecessarily.

Did you know there is a product offering up to 9.54% annual interest benefits?

Is it from the secondary financial sector? No, it is not!

If you are between 19 and 34 years old, pay attention.

Let's take a look at the 'Youth Leap Account' that has returned with even stronger benefits.

What is the Youth Leap Account?

The Youth Leap Account allows you to freely deposit up to 700,000 KRW per month for 5 years,

and at maturity, you can receive the sum of government subsidies and bank interest.

It is a policy-type financial product supporting young people's asset formation.

It is one of the key national tasks of the current government,

promoted to support young people's mid- to long-term asset formation.

Since its launch in June 2023, about 510,000 people have signed up,

and in 2024 alone, 1.06 million people joined,

bringing the total number of accounts opened to 1.62 million.

According to the Financial Services Commission, considering that about 6 million young people are eligible to join the Youth Leap Account,

more than one in four young people are building assets through this account.

Youth Leap Account Returns in 2025 with Stronger Benefits

This year, the Youth Leap Account offers even stronger benefits than last year.

Previously, some said a 5-year savings plan was too long,

and that if you canceled early, you wouldn't get any benefits.

From this year, if you maintain the account for at least 3 years, you can still receive tax-exempt benefits and 60% of the government contribution even if you withdraw early.

Also, if you maintain the account for over 2 years and deposit more than 8 million KRW, you will receive a credit score increase of 5 to 10 points or more.

Starting in the second half of this year, partial withdrawals of up to 40% of the principal will be allowed if you maintain the account for over 2 years.

Previously, subsidies were only provided up to the savings limit,

but from this year, an additional 3% subsidy will be given on amounts saved beyond the limit.

※ Click to see detailed information.

How to Join the Youth Leap Account?

The Youth Leap Account accepts applications monthly.

This month, applications are accepted from the 3rd to the 14th.

You can open an account after checking eligibility on the application of participating banks (KB Kookmin, Shinhan, Woori, Hana, NH Nonghyup, Busan, Gwangju, Jeonbuk, Gyeongnam Banks, and iM Bank).

Single-person households can open accounts from February 20 to March 14, and households with two or more people can open accounts from March 4 to March 24 during business days.

As mentioned earlier, there is an age limit for eligibility.

Only those aged 19 to 34 at the time of account opening are eligible.

There are also income conditions.

The total salary in the previous tax period must be 75 million KRW or less (or comprehensive income amount subject to comprehensive income tax standard of 63 million KRW or less),

and the household income must be at or below 250% of the median income according to household size.

However, anyone who has been subject to comprehensive financial income taxation even once in the past 3 years cannot join.

Youth Leap Account Reduces Asset Inequality by 35.2%

Research shows that the Youth Leap Account actually reduces asset inequality.

According to the report "Economic Effects of Introducing Individual Development Accounts" by the Korea Institute of Finance,

the asset inequality between the top 10% and bottom 10% income groups

decreased by 35.2%, from 4.35 to 2.82 at age 35, after the introduction of the Youth Leap Account.

Even when comparing only the eligible groups, the bottom 50% and bottom 10%,

asset inequality decreased from 1.56 to 1.11,

showing a 28.8% reduction in income inequality.

This is interpreted as providing young people with relatively low income levels the opportunity to grow assets through high-interest benefits, thereby reducing asset inequality.

If you meet the conditions, there is no reason not to open a 'Youth Leap Account.'

Especially since this year offers even better conditions,

those who qualify should definitely apply by the 14th of this month.

The government is also considering allowing not only savings but also financial investment product transactions in the Youth Leap Account in the future,

making it an excellent opportunity for those who want to save a lump sum and grow it through investment.

We hope this information is helpful to our subscribers,

and thank you for taking the time to read today.

'Subscriptions and Likes' are a great encouragement.