2nd Youth Future Savings Account Offers Annual Interest of Up to 19.4%; Applications Begin October 7
Applications for the second round of the Youth Future Savings Account, which gained popularity in the first half of the year, will begin on October 7. The Financial Services Commission and related agencies including the Korea Savings Bank announced on the 16th that they will operate the second application period for the Youth Future Savings Account from October 7 to 16 to expand young people's asset-building opportunities.
The distinguishing features of this round of the Youth Future Savings Account include providing an additional opportunity for Youth Challenge Account participants to switch to the Youth Future Savings Account, and the plan to retroactively pay increased preferential government contributions to existing Youth Future Savings Account participants upon passage of the 2027 Youth Future Savings Account restructuring budget through the National Assembly.
The Youth Future Savings Account is a product in which participants freely deposit between a minimum of 1,000 won and a maximum of 500,000 won each month for three years, the government provides matching contributions at a set rate of the deposited amount, and tax exemption benefits are provided on interest income.
Eligible applicants are youth aged 19 to 34 years old. During this application period, those born from November 17, 1991 to November 27, 2007 can apply. Military service periods of up to 6 years are excluded from age calculation for those who have completed mandatory military service.
As with the initial recruitment, young people with a total annual salary of 75 million won or less or small business owners with annual revenue of 300 million won or less, and those within 200% of the median household income can apply.
Meanwhile, if the government's budget for next year, which includes expanding eligibility to all youth and raising the government contribution rate for the preferential tier, passes through the National Assembly's budget review and is finalized, existing Youth Future Savings Account participants will also receive the increased preferential government contributions retroactively. The raised preferential government contribution matching ratios are 15%, or 25% for those working at small and medium enterprises in provincial regions.
Applications will operate on an odd-even basis by birth year on October 7 and 8, and from October 12 to 16 thereafter, anyone can apply regardless of birth year. The account screening period will run from October 19 to November 13, with results to be individually notified to applicants. Those who pass the account screening can open accounts at Youth Future Savings Account handling institutions from November 16 to 27.
In this second round of recruitment, an additional opportunity is being provided for existing Youth Challenge Account participants to switch to the Youth Future Savings Account.
Young people wishing to switch should first △complete Youth Future Savings Account application and screening and receive notice of eligibility to open an account, then △open a Youth Future Savings Account, and then △apply for early termination of their Youth Challenge Account for the purpose of opening a Youth Future Savings Account.
At the application stage, applicants will directly select whether they work at small and medium enterprises, and a mutual verification system will be established by comparing this with the review results of the Korea Savings Bank using KoDATA (Korea Credit Data) information, etc., to enhance review accuracy.
Prior to finalizing the review results, preliminary review results will be notified in advance to applicants, and sufficient opportunity will be provided to make explanations. Specific application methods and detailed procedures for switching accounts will be announced additionally before the start of the second application period.