The Financial Services Commission announced today (June 28) that it will accept applications for the Youth Future Savings Account from June 29 to July 3, regardless of the applicant's birth year.

The Youth Future Savings Account is a three-year maturity, flexible savings product that allows individuals aged 19 to 34 to deposit up to 500,000 won per month.

The government provides a matching contribution of 6% or 12% on the deposited amount, and interest income is exempt from taxation.

Considering interest rates, government matching contributions, and tax exemptions, the effective annual yield is equivalent to a simple interest savings product of up to 13.2–14.4% for the general type and up to 18.2–19.4% for the preferential type.

Eligible youth can apply non-face-to-face through the mobile apps of participating banks and the Korea Post. Eligibility screening, including verification of personal and household income, will be conducted without the need for additional documentation.

Young people who turn 35 between this application period and the second application period (tentatively scheduled for December of this year) should be careful not to miss this initial application window, as their opportunity to join may be restricted later.

For those who have completed military service, the period of service is excluded from the age calculation.

Applicants must be able to verify their income from the previous year. Employees of small and medium-sized enterprises (SMEs) who meet certain requirements, new employees at SMEs, and small business owners are eligible for the preferential type, which offers a 12% matching contribution rate.

Following the application period, eligibility screening will take place from July 6 to July 24, and the Korea Inclusive Finance Agency will notify applicants individually.

Those who pass the screening can open an account during a two-week period from July 27 to August 7 and begin making deposits thereafter.

Meanwhile, dual enrollment in the Youth Leap Account and the Youth Future Savings Account is not permitted.

Switching is only allowed during the initial application period; those who sign up for the Youth Future Savings Account must separately apply for special early termination of their Youth Leap Account if they wish to switch.

(Photo: Yonhap News)