Preferential rates for child-allowance recipients, card users

Top rate applies up to 1 million won; year-end sign-up event also offered

KB Kookmin Bank's Yeouido headquarters annex building [KB Kookmin Bank]
KB Kookmin Bank's Yeouido headquarters annex building [KB Kookmin Bank]

KB Kookmin Bank has unveiled a dedicated parking account that offers customers who receive child allowances an annual interest rate of up to 3.1%.

The bank announced Friday the launch of the KB Child Allowance Account, timed to coincide with a gradual expansion of the age range eligible for government child allowance support.

The product carries a base rate of 0.1% per year. Customers who meet certain conditions can earn up to an additional 3.0 percentage points in preferential rates, bringing the top rate to 3.1% annually on balances up to 1 million won ($745).

The preferential rate is structured around three conditions. Customers who receive their child allowance directly into a KB Kookmin Bank account earn an additional 2.0 percentage points per year. Those who have not received child allowances through Kookmin Bank in the six months prior to opening the account qualify for a welcome bonus of 0.6 percentage points per year. Customers who use the account to pay bills charged to a KB Kookmin Card credit or debit card, or a KB Kookmin BC Card, receive an additional 0.4 percentage points per year.

The preferential rates apply on balances up to 1 million won, and the account also comes with a waiver of financial transaction fees. Customers can open the account at branches or through the KB Star Banking app, and existing demand deposit accounts can be converted into the KB Child Allowance Account.

To mark the product launch, the bank will run a promotional event through the end of the year. Customers who open the account and meet the event entry conditions will receive either a 5,000-won Baemin mobile gift voucher or 5,000 won in Naver Pay points.

KB Kookmin Bank said it developed the product in response to the phased expansion of the child allowance program's eligible age range.

"We hope this product helps customers manage their child allowances more conveniently while enjoying a range of financial benefits," a bank official said. "We will continue to expand our products and services as a reliable financial partner for families raising children."

Meanwhile, KB Kookmin Bank recently signed an MOU with the Korea Credit Guarantee Fund and Korea Technology Finance Corporation on youth startup financial support, aimed at improving access to financing for young entrepreneurs and easing the financial burden of early-stage startup costs.


rim@heraldcorp.com