“If you put 500,000 won a month, you get 360,000 won more”… Tax-free savings for young people

The ‘Youth Hope Savings Savings’, which supports up to 4% of the monthly payment as a savings incentive up to a limit of 500,000 won, will be released on the 21st of next month. The special feature of this savings account is that it is also tax-free on interest income.

According to the Financial Services Commission on the 26th, if the Youth Hope Savings Account is paid up to maturity of two years, an additional 4% of the savings incentive is provided to the market interest rate. Market interest rates can be compared for each bank on the deposit product interest rate comparison site on the Consumer Portal of the Federation of Banks from the 9th of next month.

If you pay 500,000 won per month for 2 years, the savings incentive will be up to 360,000 won. The age standard for the subscription is young people aged 19 or more and 34 or less as of the date of registration of savings account. However, in the case of military service, the period of military service (up to 6 years) is not included in the calculation of age.

In addition to the age criteria, you can join if your total salary for the immediately preceding taxable period (January to December 2021) meets the individual income criteria of 36 million won (combined income 26 million won) or less. Any increase in income after the time of enrollment does not affect eligibility for enrollment.

However, if there is no income at all, or even if there is income, it is difficult to join if you cannot prove the amount of income through the National Tax Service. In addition, if you have been subject to comprehensive financial income taxation at least once in the previous three years, you will be restricted from joining.

Ahn Gi-bin, an official of the Financial Services Commission, said, “Ahead of the official launch of the Youth Hope Savings Savings Account, we plan to operate the ‘Youth Hope Savings Savings Preview’ service to check whether you can sign up for it from February 9 to 18.”

The service is provided through the apps of 11 commercial banks, and whether you can sign up for a savings account can be notified through a text message within 2-3 business days of using the service. It is convenient for consumers who use the preview service to sign up immediately after the product is officially released without going through the subscription requirements check process at the bank that provided the service.

Those wishing to join can choose one of 11 commercial banks, including KB Kookmin, Shinhan, Hana, Woori, NH Nonghyup, IBK Enterprise, Busan, Daegu, Gwangju, Jeonbuk, and Jeju, and sign up face-to-face or non-face-to-face. Starting from June, you can also join SC First Bank.

On the other hand, detailed information about the Youth Hope Savings Savings Program can be found through the call centers of each bank and the People’s Finance Call Center of the People’s Financial Promotion Agency.

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