8% youth savings plan faces test as stock market booms
The appeal of a new government-backed savings program for young people, which opened for applications on Monday, is being put to the test as a stock market frenzy draws younger investors into equities. According to the Financial Services Commission (FSC), applications for the Youth Future Savings Plan will be accepted for two weeks through July 3 at 15 major banks. The program is available to individuals aged 19 to 34. Applicants must meet income requirements based on earnings from the previous year. The general tier is available to those who earn a salary of up to 60 million won ($39,000) a year, as well as small business owners with annual sales of up to 300 million won. The three-year savings product allows subscribers to deposit up to 500,000 won a month. It offers a base interest rate of 5 percent, which can rise to as much as 7 to 8 percent depending on the bank and eligibility for additional incentives. The government will provide contributions equivalent to 6 percent or 12 percent of monthly deposits, depending on income levels, while exempting interest income from taxation. The F
