A total of 2,868,000 people signed up for Youth Hope Savings Savings, which was launched in February of last year, and was very popular. Accordingly, this administration also put forward the Youth Leap Account, a youth policy, as one of its presidential campaign pledges.
Among them, let’s take a look at the conditions and benefits of joining the Youth Hope Savings Savings, which will be changed this year, and the Youth Leap Account, which will be released in June.
Conditions for joining the Youth Leap Account
Conditions for joining the Youth Leap Account
Conditions for joining the Youth Leap Account
The Youth Hope Savings Savings, which will soon be closed, and the Youth Leap Account, which is about to be launched, are all products designed to help young people build mid- to long-term assets. In the case of Youth Hope Installment Savings, since its launch in 2022, it has become known that it has the effect of subscribing to an annual interest rate product of 10%.
It can be seen that the installment savings product will be replaced with the Youth Leap Account, which is scheduled to be released in June 2023.
index
1. Conditions for joining the Youth Leap Account
2. Payment amount
3. Comparison of Youth Leap Account and Youth Hope Savings Savings
4. How to apply and precautions
1. Conditions for joining the Youth Leap Account
Conditions for joining the Youth Leap Account
The Youth Leap Account is a policy finance product that President Yoon promised in his presidential campaign pledge to create opportunities for young people to build assets.
The subscription period is up to 5 years, and the maximum payment amount is up to KRW 700,000 per month.
Conditions for joining the Youth Leap Account
Conditions for joining the Youth Leap Account
Subject to subscription
Young people between the ages of 19 and 34 (military service period, up to 6 years) can add age
joining condition
Individuals with an annual income of 60 million won or less and household income of 180% or less of the median household income
Conditions for joining the Youth Leap Account
You cannot join if you do not have annual income.
However, if your financial income (the sum of interest income and dividend income) exceeds KRW 20 million at least once during the previous three years, you cannot enroll. This means that you can sign up only if you have official income reported to the National Tax Service, and even if you work part-time, you can sign up if you have reported income.
support benefits
Depending on the income bracket, the government subsidizes 3-6% of the monthly payment, and a separate bank interest (estimated at 5%) is attached. At maturity, tax exemption benefits and government subsidies are added to help young people raise cash at maturity.
As a result, an installment savings product with an interest rate of about 8% is born.
Termination
If you close your Youth Leap Account early, you will not receive interest tax exemption benefits and information subsidy benefits. In other words, in case of early termination, the tax that has been reduced or exempted must be returned.
However, if the account is canceled due to unavoidable circumstances (disease, job loss, etc.), it is said that a policy that makes it possible to sign up early may be included.
Click on the link below to see various youth policies.
Financial Services Commission youth policy confirmation (click)
2. Payment amount
The maximum amount you can receive is…
Up to 1.44 million won over 5 years
Conditions for joining the Youth Leap Account
24,000 won per month if your personal income is less than 24 million won
23,000 won per month from 24 million won to 36 million won
22,000 won per month from 36 million won to 48 million won
21,000 won per month from 48 million won to 60 million won
From 60 million won to 75 million won, it is 0 won per month (only tax-exempt benefits are available).
Conditions for joining the Youth Leap Account
3. Comparison of Youth Leap Account and Youth Hope Savings Savings
Conditions for joining the Youth Leap Account
Youth Hope Installment Savings and Youth Leap Account are tax-free products. However, the Youth Leap Account has a higher matching rate, so more government subsidy is paid.
The youth hope installment savings have a maturity of 2 years, and you can receive an average of 3% of the payment in the 1st and 2nd years as a support fund. The matching rate for Youth Leap Account varies from 3 to 6% depending on the income category.
Conditions for joining the Youth Leap Account
The two products differ in the amount and method of subsidy payment. Youth Hope Savings can receive up to 360,000 won at once if paid by the maturity of 2 years. If you receive a maximum monthly subsidy of 24,000 won for 5 years (60 months), you can receive a total of 1.44 million won.
4. How to apply and precautions
Conditions for joining the Youth Leap Account
The youth leap account will receive applications to sign up through the handling period app from June, and it is said that it will conduct a non-face-to-face screening. The maintenance review is conducted on a one-year cycle, and individual income and household income are reviewed simultaneously.