The Ministry of Science and ICT's Postal Service said on Wednesday it will raise the interest rate on the Post Office Soldiers' Tomorrow Preparation Savings product to as high as 11 percent a year to help service members return to civilian life in a stable way.

The base rate on the savings product is 5.0 percent a year. Service members who sign up from April 10 can receive additional preferential rates on top of the base rate, applying a maximum of 11.0 percent a year for terms of 15 months to 24 months, before tax.

Key preferential rate items, totaling 6.0 percentage points a year, include 1.1 percentage points for first-time post office customers, 1.0 percentage point for automatic transfer records, 0.6 percentage point for post office debit card usage and 3.3 percentage points for basic livelihood security recipients.

Service members who sign up for the Post Office Soldiers' Tomorrow Preparation Savings product will also receive additional services, including Post Office Shopping discount coupons and a free holiday disaster coverage insurance sign-up service. Interest income is fully exempt from tax on up to 300,000 won a month per bank, limited to 2 accounts per person and a combined 550,000 won across banks.

Park In-hwan (박인환), head of the Postal Service, said he hopes the Post Office Soldiers' Tomorrow Preparation Savings product will serve as a valuable foundation for young service members as they take their first steps in society after discharge. He said the Postal Service will continue to introduce a range of products that can provide practical financial benefits to customers.