BNK Busan Bank launches Youth Future Savings account with up to 7% annual interest

BNK Busan Bank on Tuesday launched the Youth Future Savings account, a policy financial product designed to help young people build assets and prepare for the future. The government and 15 participating financial institutions jointly developed the product.

The account is open to young people who meet certain eligibility requirements and offers a government contribution and tax exemption upon maturity. Applicants must be between 19 and 34 years old and satisfy conditions related to personal income, household income and liability for comprehensive financial income taxation.

Account holders may deposit up to 500,000 won ($326) per month on a flexible basis over a 36-month term. Applications are accepted through the BNK Busan Bank mobile banking app until July 3, and accounts may be opened only by customers who pass a screening by the Korea Inclusive Finance Agency and receive an eligibility notice.

The base interest rate is 5.0 percent per year. Account holders can earn up to an additional 2.0 percentage points through preferential rate conditions — salary transfers, credit or debit card usage, holding a housing subscription savings account, meeting income requirements and completing a youth financial counseling program — bringing the maximum to 7.0 percent per year. Depending on the account holder's income level and type, a government contribution equal to 6 or 12 percent of the deposited amount will be paid, and interest earned on the account will be exempt from taxation.