The Youth Leap Account is a policy-type financial product supported by the government to help young people raise a lump sum of money. Applications for membership have been made since last August, and users can sign up within the monthly subscription application period. This will be a great opportunity for various young people who have difficulty raising a lump sum to save a lump sum over the long term.
The Youth Leap Account is a product that pays a government contribution of up to 6% each month and provides tax exemption on interest income if you freely pay within the limit of 700,000 won per month for 5 years (60 months) until maturity in order to support young people’s mid- to long-term asset formation. Today, we will take a closer look at the membership conditions and support details for the Youth Leap Account.
☞Application for Youth Leap Account
Conditions for signing up for the Youth Leap Account
-Age: 19 to 34 years old (military period added)
-Household income: 180% or less of median income
-Total salary: less than 75 million won
First of all, if you look at the qualifications, you can only sign up if you are over 19 years old or under 34 years old, and you must have an income of 180% or less of the household median income to select a product.
Salary is also important; you can apply for an annual income of up to 75 million won, and you are eligible to receive government contributions if your annual income is less than 60 million won.
Government contributions are paid differently depending on income, and no contribution is paid to those with an annual income of 60 million won or more.
☞Application for Youth Leap Account
Only tax exemption and preferential interest rates can be applied, and the income requirement is that household income must be less than 180% of the median income.
Looking at the conditions for household median income below 180%, the baseline is about 3.5 million won per month for a one-person household, about 5.86 million won for a two-person household, and about 7.55 million won for a three-person household. You must meet these conditions by calculating the assets and income of family members living together.
And it is the age corresponding to young people. From the age of 19 to 34, the period of military service is added up. If a young person has served in the military for 2 years, he or she can add 2 years and open a bank account until the age of 36.
Youth Leap Account Support Details
▣ Support details
Let’s take a look at the most important support details for the Youth Leap Account.
bank interest
Preferential interest rates are provided to young people from low-income families.
Tax-free benefits
government contribution
The government contribution is determined in proportion to the amount you have paid.
Find out about government contributions
Youth Leap Account subscription screening process
▣ Subscription screening process
The review process takes approximately 3 to 4 weeks.
Verify age and personal income
Confirmation of household members and consent to provision of information
Check household income
Notification of confirmation results
Now, let’s take a look at the picture to understand the Youth Leap Account subscription screening process.
Youth Leap Account subscription screening process
If you meet the eligibility requirements for a Youth Leap Account, you can receive an information message. Each bank has different requirements for preferential interest rates, so please compare them carefully and open an account at the bank that is most favorable to you.
Apply for Youth Leap Account
NH Nonghyup Bank, Shinhan Bank, Woori Bank
Hana Bank IBK Industrial Bank KB Kookmin Bank
DGB Daegu Bank Busan Bank Gwangju Bank
Jeonbuk Bank Gyeongnam Bank
☞Application for Youth Leap Account
Youth Leap Account Maturity Calculation
▶ When paying 700,000 won per month for 5 years, principal amount of 700,000 won × 60 months = 42 million won
▶ Government contribution of 21,000 won × 60 months = 1.26 million won
▶ If the annual interest rate is 6%, the interest rate for 5 years is 6,405,000 won.
▶ Total amount is 42 million won + 1.26 million won + 6.405 million won = 49,665,000 won
※ The maturity amount of the Youth Leap Account varies depending on personal income and monthly payment amount, so please refer to the check maturity amount below.
Youth Leap Account Interest Rate and Early Cancellation by Bank
▶ The Youth Leap Account has a fixed interest rate for 3 years after signing up and a variable interest rate for the next 2 years. Interest rates vary depending on the bank, so you can choose your account. Check preferential interest rates by bank
▶ In the case of general early termination, only your own payment is paid, and you cannot receive government contributions or tax exemptions.
▶ If the reason for termination meets special early termination requirements, you can also receive self-payment, government contribution benefits, and tax exemption benefits.
※ Special early termination requirements: Death of the subscriber, overseas relocation, retirement of the subscriber, closure of business, natural disaster, disease requiring long-term treatment, and purchase of a home for the first time in life.