Precautions for joining installment savings with high interest recommended for installment savings for 20s
I am going to write an article for 20s social beginners to recom
mend installment savings. It is most common to use the installment savings method as the basis of financial technology and the safest way to collect large sums of money. There are two methods of installment savings: regular installment savings that pay the same amount of money for a certain period of time every month and free installment savings that are freely collected during maturity depending on the circumstances of the funds.
Types of installment savings
Regular installment savings: Payment of the same amount of money by maturity every month
Free installment savings: A method of freely paying extra funds until maturity
Regular installment savings, which promise to leave a certain amount of money to financial institutions for a certain period of time and not to find it within the set deadline, generally have higher interest rates than free installment savings. While paying part of the regular installment savings regularly every month, some recommend using the free installment savings at the same time according to the financial situation.
20s installment savings recommendation
Recommended installment savings for 20s: Priority subscription to financial products supported by young people
It is necessary to first check policy financial products with financial support, including tax benefits, for young people in the country. Although the subscription target is limited for each product, there are additional conditions such as applying preferential interest rates, tax benefits, or receiving state policy subsidies than general financial products sold by financial institutions.
First of all, it is important to find financial products that young people can temporarily subscribe to. There is a lot of interest in appropriate financial products as financial products for young people in their 20s, so they have been organized whenever the contents of policy-type financial products are released in the country. Essentially, first check whether you are eligible for subscription with interest, and if the subscription requirements are met, you can plan according to the economic situation and pay until maturity
To find out the conditions for imposing interest income tax after the resumption of application for the 2022 Youth Hope Installment Savings in September
How to apply for youth leap account
Interest on tax-free income deduction for documents subject to subscription to a youth preferential subscription account
Hana Bank Youth Tomorrow Low Account Subscription Requirement Period Application Method
Regardless of the distinction between the primary and secondary financial sectors, within the limit of 50 million won, which is protected by depositors, you can find and sign up for an installment savings with high interest. It is better to select and select financial institutions with high basic interest rather than so-called credit card-affiliated products, which increase interest only when preferential conditions are met.
Recommended installment savings for 20s: Find installment savings with high interest
How to find interest-high installment savings can be found on the most reliable official regular installment savings rate comparison disclosure site, portal sites such as Naver, and other MyBank. In my case, I tend to use the Financial Supervisory Service’s product comparison disclosure often, but the advantage is that I can see the regular installment savings interest rates of banks and savings banks at a glance.
However, the Financial Supervisory Service’s comparative disclosure of financial products features only basic interest rates excluding preferential conditions. If there are products that meet the preferential conditions if you take a little without any major inconvenience, it is helpful to look at the detailed subscription conditions of the products because you need to take care of these products.
Naver can conveniently compare products of regular installment savings. The advantage is that it is convenient to see not only banks and savings banks but also regular installment savings of credit unions at once. If there is a disadvantage, the highest interest rate provided on the premise that all preferential conditions have been met is marked, which can be misunderstood if it is wrong. This is because it may be difficult for a person who subscribes to a product called installment savings to understand what this means, although it is clearly marked as up to 0% when preferential conditions are achieved.
Most of the financial products on the first page, which are currently shown in the order of installment savings with high interest on Naver, are affiliated products, such as preferential interest rates, especially when new credit cards are issued and used for a certain period of time.
If you were interested in issuing credit cards before, you should not be suspended from these products because you do not need to issue and use credit cards unnecessarily to satisfy the preferential conditions of installment savings.
In addition, for social beginners in their 20s who are not familiar with the differences between financial institutions, Korea distinguishes the primary and secondary financial institutions, so the contents are briefly described as follows.
the primary financial sector
Commercial banks: Kookmin Bank, Woori Bank, Shinhan Bank, Hana Bank
National Bank: Korea Development Bank, Export-Import Bank of Korea, Industrial Bank of Korea, Nonghyup Bank
Local banks: Busan Bank, Kyongnam Bank, Daegu Bank, Gwangju Bank, Jeju Bank, etc
Internet Bank: Kakao Bank, Toss Bank, K-Bank
the secondary financial sector
Savings Bank: SBI Savings Bank, Welcome Savings Bank, etc
Mutual finance: Saemaul Geumgo, Shinhyup, Suhyup, Unit Nonghyup, etc
Securities firms: Mirae Asset Securities, KB Securities, Kiwoom Securities, etc
Insurance company: Kyobo Life Insurance, Hanwha Insurance, etc
Credit card companies: BC Card, Shinhan Card, Samsung Card, etc
The financial institutions we generally visit to subscribe to deposits and installment savings are savings banks and mutual financing among the primary and secondary financial institutions. Since the depositor protection limit is applied, even if a financial company goes bankrupt, up to 50 million won can be safely returned.
In other words, installment savings should only be subscribed to in the primary financial sector There is no need to think of it this way, and if you pay a certain amount of money during the maturity period without any special preferential conditions or restrictions on subscription, you need to consider signing up as a priority if you have an installment savings with high interest.
These days, Saemaul Geumgo or Shinhyup have higher interest savings that can only be subscribed to in the form of special savings, so you can pay attention to this information and subscribe to installment savings that are close to your residence or can be subscribed to non-face-to-face.
Installment savings recommendation for 20s: installment savings with high interest
I made a recommendation list for installment savings in my 20s. The standard is a product that has high basic interest savings and preferential conditions, but is relatively simple (marketing consent, non-face-to-face subscription). I tried to group them by recommendation ranking. In particular, NH Nonghyup Bank’s 1934 installment savings and Korea Investment Savings Bank’s six-month installment savings were thought to be good products for my standards, so I posted them separately on my blog.
The three installment savings products included in the recommended first-priority group are products made with preferential treatment for young people or products made by reflecting the characteristics of the generation rather than general savings sold by commercial banks.
Recommended number one group
NH Nonghyup Bank 1934 5.85%
Shinhan Bank’s 5.3% installment savings worth shooting
Jeju Bank MZ Plan 5.0%
The three installment savings products included in the recommended second-priority group have no preferential conditions. If you just sign up, you can easily sign up because it’s a condition of giving low interest, but commercial banks and savings banks picked it in the order of high interest.
Recommended 2nd place group
Daol Savings Bank 4.1%
Moa Savings Bank 4.0%
Korea Development Bank 3.65%
The recommended third-priority group selected non-face-to-face products from Korea Investment Savings Bank, which give high interest due to short maturity, and free maturity of one to three years and five years as needed, so that interest can be referred to according to its characteristics.
Recommended 3rd place group
Korea Investment Savings Bank 6.00% (6 months)
Yangnam Agricultural Cooperative Savings 6% (12 months), 6.1% (36 months)
For reference, the interest rate on regular installment savings special sales of the Saemaul Geumgo or Shinhyup, which was sold for a while, was around 12 months and 6 to 7%.
Precautions for signing up for installment savings with high interest
If you are the first to be interested in tax benefits and policy financial products for young people who provide subsidies from the country, it is recommended to sign up first. Then, if you can afford it, you can selectively subscribe to an installment savings account with high interest. Even in this case, it is more helpful to raise a large amount of money if regular installment savings and free installment savings are used at the same time.
The method of selecting an installment savings with high interest needs to use the comparative disclosure site mentioned above and recalculate the highest interest rate I can receive in the case of installment savings products divided into basic and preferential conditions.
You don’t choose a product based on the highest interest rate. In particular, installment savings that meet preferential conditions through credit card partnerships are not recommended because there is a risk of unnecessary credit card issuance. There is also an annual credit card fee, and if a credit card is issued separately by sector, it will negatively affect credit scores. Above all, it is also necessary to remember that it is more effective to control consumption by using check cards than credit cards for beginners in society who start financial technology.
There is no need to judge the primary and secondary financial sectors separately. Since the depositor protection limit is applied, it is good to think that even if a financial institution goes bankrupt, I can get my money back up to the 50 million won limit and pay attention to special savings such as the Korea Federation of Community Credit Cooperatives and Credit Cooperatives.
Due to the nature of products released by financial institutions for young people, an upper limit on the subscription amount is often set. For example, if the maximum subscription amount is set at 100,000 won per month, but if the subscription amount is small, there is no reason to visit and sign up with time and transportation costs if the interest rate is high. In this case, it is also a good idea to compare the actual amount of income received after deducting taxes at maturity by entering the principal, interest rate, and maturity information through the interest calculator.