'Up to 19% a Year' Youth Future Savings Second Application Period Closes Oct. 16

Check eligibility and apply before the deadline
Application reviews begin on October 19
Existing Youth Leap Account holders can switch to the Youth Future Savings account

The second application period for the Youth Future Savings account, which began on October 7, will close on October 16.

The Financial Services Commission said on October 15 that the second application period for the Youth Future Savings account, which offers interest benefits of up to 19% a year, will close at 6:30 p.m. on October 16.

The Youth Future Savings account is a three-year installment savings product that allows flexible monthly deposits of up to 500,000 won. Applicants who meet certain income requirements receive a government contribution equal to 6% of their deposits under the standard plan or 12% under the preferential plan. Taking into account the interest rate, government contributions and tax exemption on interest income, the benefits are similar to those offered by a simple-interest installment savings product with a rate of up to 14.4% for the standard plan and 19.4% for the preferential plan.

People born between November 17, 1991, and November 27, 2007, are eligible to apply. Young people wishing to join must submit an application through the mobile app of a participating institution by 6:30 p.m. on October 16, when the application period closes.

Applications will be reviewed from October 19 to November 13. Before the results are finalized, applicants can check the plan type they selected and the review results. The Financial Services Commission plans to notify applicants of the preliminary review results between October 30 and November 2 (tentatively), and will also provide an opportunity to file objections.

Applicants notified that they are eligible to join can open a Youth Future Savings account through a participating institution's app between November 16 and November 27. The account cannot be opened after that period, so applicants must complete the process by the deadline, the Financial Services Commission said.

Existing Youth Leap Account holders can also switch to the Youth Future Savings account if they meet its eligibility requirements. Those who apply during this second application period and pass the review can open a Youth Future Savings account during the account-opening period, then apply for a special early termination of their Youth Leap Account for the purpose of joining the Youth Future Savings account.

If the “2027 Youth Future Savings Government Budget Proposal,” which includes expanding eligibility and increasing the contribution rate for the preferential plan, is finalized through National Assembly deliberations, the revised benefits will also be applied retroactively to existing account holders. First, existing preferential-plan holders will receive the increased government contributions retroactively. Those who are currently ineligible for government contributions and can only receive tax-exempt interest income will also receive standard-plan contributions retroactively.

This content was produced with the assistance of AI translation services.