High-Yield Savings Account (13.5% Annual Interest) Launched for SME Employees - 134% Return Guaranteed in 5 Years

Annual Interest Rate of 13.5%, Unprecedented Benefits for SME Employees

Recently, a 5-year savings product with an ultra-high annual interest rate of 13.5% has garnered significant attention. This is the 'SME Employee Preferred Savings Program', a policy-based financial product created through collaboration between the government and financial institutions to encourage long-term employment and asset building for SME employees. On the 28th of last month, the Ministry of SMEs and Startups celebrated the first subscribers at the Gurodo branch of IBK Industrial Bank in Guro-gu, Seoul, marking the official launch of this product.

Benefits of the SME Employee Preferred Savings Program

The SME Employee Preferred Savings Program is a financial product developed through collaboration between the Ministry of SMEs and Startups, the Korea Small Business Administration, Industrial Bank of Korea, and Hana Bank. Its purpose is to help employees of SMEs build assets and encourage long-term employment. SME employees who subscribe to this product can receive 40.27 million won after 5 years, including 10.27 million won in interest, by paying 500,000 won per month for 5 years. This amounts to 134% of the principal. This is expected to greatly assist SME workers in building assets and reducing wage gaps.

Welfare Benefits Also Provided

This savings program not only offers high-interest rates but also provides various welfare benefits to subscribers, including health check-up costs, vacation allowances, and education vouchers. These welfare benefits are expected to improve the quality of life for SME employees and play a significant role in encouraging them to work for SMEs for a longer period.

Efforts to Alleviate SME Manpower Shortages

Minister Oh Young-ju of the Ministry of SMEs and Startups stated that she hopes this policy will greatly help alleviate the manpower shortage in SMEs. SMEs have long struggled with manpower supply, a situation often described as 'everything revolves around manpower'. In this context, policy-based financial products that encourage long-term employment by SME employees can have a positive impact on resolving manpower shortages.

Benefits Born from Collaboration Between Financial Institutions and the Government

The SME Employee Preferred Savings Program is the result of collaboration between the government and financial institutions. Each institution has worked together to help SME employees build assets stably through long-term employment. This allows SME workers to receive better financial benefits, and SMEs to establish a foundation for retaining employees.

An Unprecedented Savings Product for SME Employees

The newly launched savings product with an ultra-high annual interest rate of 13.5% is attracting much attention by providing financial benefits that SME workers have not been able to experience. With its high interest rate and various welfare benefits, it is expected to encourage long-term employment among SME employees and greatly assist in asset building. The extent to which this product will benefit SME employees and its impact on alleviating SME manpower shortages will be closely watched.

Features of the SME Employee Preferred Savings Program

Product Features

• This is a savings product for employees participating in the Ministry of SMEs and Startups' SME Employee Preferred Savings Program.
• Subscribers can receive corporate subsidies when paying contributions.

Eligibility

• SME employees whose participation has been approved by the Korea Small Business Administration, real-name individuals (one account per person per bank).

Subscription Period

• 5 years

Subscription Amount and Savings Limit

• Subscription Amount: 100,000 won or more ~ 500,000 won or less (in units of 10,000 won), the subscription amount approved by the Korea Small Business Administration
• Savings Limit: Same amount as the subscription amount, can be saved once a month.

Interest Payment Method

• Maturity Lump-Sum Payment: Interest paid upon maturity.
• Savings Method: Flexible savings.

Interest Rate Information

Reference Date: 2024-10-28

• Period: 36 months, 60 months
• Interest Rate (Annual, Before Tax): 3.0%
• Preferential Interest Rate: Up to 2.00% per annum (before tax)

Preferential Items

• Salary Transfer (1.40% per annum): Based on the end of the month before the second to last month of the contract period after subscription, if you have a salary transfer record through your Hana Bank deposit/withdrawal account in your own name for more than half of the contract period (recognized once a month).
  • The salary transfer benefit doesn't mean it's impossible if your company doesn't transfer your salary to Hana Bank or Industrial Bank of Korea. After receiving it in your existing account, you can transfer it to Hana Bank or Industrial Bank of Korea with the name changed from your own name to \"salary or monthly wage\". It's inconvenient since you have to do it every month.
• Card Payment (0.50% per annum): Based on the end of the month before the second to last month of the contract period after subscription, if you have a Hana Card payment record through your Hana Bank deposit/withdrawal account in your own name for more than half of the contract period.
• Marketing Agreement (0.10% per annum): If you agree to Hana Bank product and service marketing before subscribing.

Example of Maturity Interest Received

• Monthly payment of 500,000 won, 60-month contract period, 5.00% annual interest rate applied, interest: 3,812,500 won (before tax, based on the highest interest rate).
  • This is an example and may vary depending on the payment amount, contract period, and applicable interest rate.

Fee Preferential Services

• Cash withdrawals from our ATMs and transfers to other banks: Unlimited exemption
• Internet banking, smartphone banking, phone banking (ARS) transfers to other banks: Unlimited exemption
• Cash withdrawal fees from other banks' ATMs: 10 times per month exemption
• Counter transfers to other banks: 10 times per month exemption

Exchange Rate Preferential Services

• USD exchange (branch): 90% preferential rate
• JPY/EUR exchange (branch): 80% preferential rate
• USD/JPY/EUR remittance (branch and non-face-to-face channels): 50% preferential rate

Other Features

• Partial withdrawal not allowed
• Tax benefits: Available as non-taxable comprehensive savings (within the combined limit of all financial institutions)
• Corporate subsidies: Corporate subsidies are provided to promote long-term employment and asset building for SME employees (paid after review by the Korea Small Business Administration in case of early termination).
• Notes: It is necessary to confirm the subscription approval through the Korea Small Business Administration before subscribing to the product.
• Principal and interest payment restrictions: Payment of principal and interest may be restricted if attachments, provisional attachments, or liens are registered on the account.

Financial Consumer Protection

• Financial consumers have the right to receive an explanation of this product and must check the financial product description and terms and conditions before concluding a contract.
• According to the illegal contract termination right, if grounds for illegal contract termination occur, you can request contract termination in writing within 5 years from the date of contract conclusion, and termination is possible without additional costs such as fees if the request is justified.

Hana SME Employee Preferred Savings

Hana Bank link: https://www.hanabank.com/cont/mall/mall08/mall0801/mall080102/1503548_115157.jsp