KB Kookmin Bank said on March 19 it has expanded preferential interest rates for its KB Soldiers' Tomorrow Savings Plan and strengthened rate benefits.

Under the revamp, the product offers annual interest rates from 5.0 percent to 10.5 percent. The rates apply to contract terms of 15 to 24 months and are before tax.

The KB Soldiers' Tomorrow Savings Plan is a policy finance product designed to help those fulfilling mandatory military service build up a lump sum after discharge. Customers can save up to 300,000 won a month per bank, and can deposit up to 550,000 won a month in total across 14 banks. Interest is fully tax-exempt, and it also provides a matching support payment funded by national finances.

In the revamp, preferential-rate items were raised. The rate for holding a housing subscription savings account rose to 1.0 percentage point a year from 0.8 percentage point, and the rate for having a KB Kookmin Card payment withdrawal record rose to 0.5 percentage point a year from 0.3 percentage point.

The preferential-rate cap was also raised to 4.5 percentage points a year from 3.0 percentage points. In addition, an event rate of 1.0 percentage point a year is offered to customers who agree to use the Military Club service within KB Youth Club.

A KB Kookmin Bank official said, "We strengthened rate benefits to express our gratitude to service members," and added, "We will continue to expand financial services to support young people in building assets and returning to society in a stable way."