Savings

SEOUL, April 10 (UPI) — The Korea Federation of Community Credit Cooperatives said Friday it launched a savings product that offers an annual interest rate of up to 12% in an attempt to boost childbirth.

The one-year installment savings product provides a base rate of 4%, which increases by steps to 12% depending on the number of the customer’s children. It is subject to a deposit limit, though.

For savers with a newborn in areas experiencing population decline, the country’s top apex organization said that the maximum 12% interest would be guaranteed regardless of the number of children.

“We have introduced dedicated financial products every year since 2023 in an effort to help address the low birth rate,” cooperative Director Cho Bong-eop said in a statement.

“As a community-based financial institution, we will keep fulfilling our social responsibilities by supporting vulnerable groups and revitalizing local economies, in addition to tackling the low birth rate,” he added.

South Korea has one of the world’s lowest fertility rates, which fell to 0.72 in 2023, according to Statistics Korea. The figure rebounded slightly to 0.75 in 2024 and 0.8 last year, still far below the replacement level of 2.1.

This means that for every 100 South Korean women, only 80 babies are expected to be born over their lifetimes, leading to a gradual population decline. The country’s population stands at 51.6 million.

To address the challenge, the Seoul government has funneled a huge amount of money over the past decades to little avail. In recent years, even private companies stepped in, providing bonuses and various benefits to employees who have a baby.

Last month, Statistics Korea reported nearly 27,000 births in January, the highest monthly figure in nearly seven years. However, the fertility rate still remained below 1.

April 3 (Asia Today) — South Korea’s major business groups on Thursday pledged to support government efforts to stabilize energy supply, announcing voluntary measures to reduce consumption as risks grow from instability in the Middle East.

Six economic organizations – including the Korea Economic Association, the Korea Chamber of Commerce and Industry and other industry groups – said in a joint statement they would take part in nationwide conservation efforts.

“We strongly agree with the government’s call to ensure stable energy supply and promote conservation in preparation for a prolonged Middle East conflict,” the groups said. “We will actively participate in efforts to overcome the crisis.”

The statement comes as the government raised its energy security alert level and introduced additional conservation measures, including expanded vehicle restrictions at public institutions.

Business leaders said ensuring stable energy supplies and improving efficiency have become more urgent than ever, pledging to expand private-sector efforts.

Proposed measures include broader use of flexible work arrangements, such as staggered commuting hours, to reduce traffic demand and energy consumption. Companies also plan to improve manufacturing efficiency and optimize facility operations to cut energy use.

Additional steps include turning off office lighting during lunch breaks and after work hours, as well as encouraging employees to use public transportation.

The groups emphasized that coordinated action among the government, businesses and the public will be essential to address the crisis.

“Voluntary participation is key to spreading a culture of energy conservation,” the statement said, adding that the private sector would play an active role in responding to the situation.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260403010001104

Martin Lewis has explained the personal savings allowance and when basic rate taxpayers with over £22,000 in savings could pay tax on interest earned

Martin Lewis has issued a tax alert for savers, with a particular warning for those holding more than £11,000 or £22,000 in savings, depending on their tax bracket. On his ITV programme this week, Mr Lewis provided savers with guidance on structuring their savings to prevent unnecessary tax charges on interest.

He began by explaining the personal allowance, which permits anyone to earn £12,570 before any tax is levied. This threshold has remained frozen since 2021, and last November Chancellor Rachel Reeves controversially extended this freeze until 2031.

The freeze has faced criticism for creating ‘fiscal drag’, meaning more of the lowest earners in the country now pay tax as inflation and wage rises leave them with less disposable income whilst facing higher taxation.

On this he said: “The first one, the personal allowance, £12,570 a year that you can earn from any source, earnings, rent, savings, interest without paying tax on. Most people get that unless you start earning over £100,000 when it’s taken away.”

Starting Rate for Savings Tax.

Mr Lewis said: “The next one not that many people know about is called the starting rate for savings. This is another £5,000 of savings. savings interest you can earn a year on top of the personal allowance. And this is designed for people who have low work earnings but high interest on savings. Often people who are retired. And here’s how it works.

“For every pound of earnings you earn above this allowance, you lose a pound on your starting savings rate. So imagine you earn £13,570. You’re a £1,000 above that. You can now only have £4,000 of tax-free interest in your savings due to the starting savings rate. And by the time you earn from work £17,570, this is gone. So it’s only for people on low work earnings and high interest on savings.”

He previously outlined that those in the ‘perfect circumstance’ would receive £12,570 from earned income. Mr Lewis explained the individual would then gain £5,000 through the starting savings allowance, plus £1,000 from the personal savings allowance on top ‘because they all go on top of each other’.

He added: “You could earn £18,570 a year tax-free with £12,570 of it coming from work or other sources, and another £6,000 of it coming from savings. I hope that makes sense. The main two for most people are the personal allowance and the personal savings allowance, but for those on lower incomes, it’s worth reading the starting savings allowance guide that’s our money saving expert just so you really understand it.”

Personal savings allowance

Mr Lewis described this as the ‘big one’ and said: “Next, we get the big one that many of you will know about, the personal savings allowance. And this is on top of those two. This is the fact that a basic rate taxpayer, 20% taxpayer, can earn £1,000 a year of interest in any form of savings at all without paying tax on it. Now, the top savings accounts at the moment pay about 4.5 per cent. So, you need about 22,000, just a little over £22,000 in the top savings account before you earned £1,000 interest.

“So, if you got less than that, you’re not going to be paying tax on your savings interest because it’s tax free. High rate tax because it’s within your personal savings allowance. High rate taxpayers pay £500 a year of interest they can make each year tax free. It’s about £11,000 saved at the top rate.

“If you’re an additional rate taxpayer earning over £125,000, you don’t get one of these. So, you got your personal allowance, your starting rate for savings, and on top of that up to another £1,000 in your personal savings allowance.”

For the 2025/26 tax year, the UK Personal Allowance stays at £12,570, with a 20% basic rate (up to £50,270), 40% higher rate (£50,271-£125,140), and 45% additional rate (over £125,140) applying to England, Wales, and Northern Ireland.

ISAs

Mr Lewis stated that this week’s show was focused on ISAs, explaining: “You can put up to £20,000 a tax year in, as you know. And crucially, the interest earned in a cash ISA does not count towards the personal allowance, does not count towards the starting rate of savings does not count towards the personal savings allowance. It is totally separate from that. So, anything you earn in there is not taxable. I should note premium bonds work roughly the same way, but it’s not an annual allowance. It’s a maximum £50,000 you can put in in total. Those are the main ways that you can save without paying tax on them.”