Toss Bank, First in Banking Sector to Pay Daily Interest

Toss Bank announced on the 16th that it will pay interest to customers daily. This is the first time a domestic financial company has allowed customers to receive interest whenever they want. As the latecomer among the three internet-only banks, Toss Bank is drawing attention to whether it will become a market 'catfish' by undertaking various attempts.

According to Toss Bank, from this day forward, customers can receive interest once a day whenever they want. This applies to customers who hold a Toss Bank account. With just one click on 'Receive Interest Now,' customers will receive interest daily in their accounts instead of once a month. Interest can be received if the accumulated amount is at least 1 won, and withdrawals are possible anytime upon the customer's request. Toss Bank plans to operate the 'Receive Interest Now' service until the end of the year and make it permanent after stabilization. Customers who do not click 'Receive Interest Now' will receive accumulated interest calculated on the third Saturday of each month, as before.

The Toss Bank account is a demand deposit account that pays a pre-tax annual interest rate of 2%. This rate applies up to a maximum limit of 100 million won. For amounts exceeding 100 million won, an interest rate of 0.1% is applied. The Toss Bank account, which now allows daily interest receipt, has a 'daily compound interest' structure where interest accumulates based on the remaining balance each day. The more money stored and the more frequently interest is received daily, the more advantageous it is for customers.

Toss Bank explained that this attempt came from the customer's perspective question, "Why do banks pay interest only once a month on a date set by the bank?" Toss Bank believes that even if money is entrusted to the bank for one day, the reward should be returned to the customers. While loan interest must be paid daily when borrowing money from banks, customers could only receive interest on large deposits on dates set by the bank. Also, when urgent funds are needed and savings or installment savings products are canceled, customers often fail to receive the agreed interest rate due to reasons such as 'early termination.' According to Toss Bank, customers who deposit 100 million won can withdraw about 5,400 won in pre-tax interest daily. A Toss Bank official said, "Until now, customers only thought about receiving interest on dates set by banks and could not imagine receiving it daily. We hope that the result of several months of planning and development will serve as an opportunity to shift finance from a supplier-centered to a customer-centered approach."

Launched in October last year, Toss Bank is the youngest among internet-only banks. However, it is chasing Kakao Bank and K Bank through various ideas. In particular, it is promoting a 'super app' strategy based on the Toss application (app), which is used by 20 million people. Toss Bank can be used within Toss without needing to download a separate app like Kakao Bank or K Bank. The one-app strategy reduces app development costs and offline branch and counter expenses, securing competitiveness in products and services. Toss Bank was also the first among the three banks to enter the personal business loan market. The 'Boss Loan' launched by Toss Bank last month recorded 116.7 billion won in just one month. Toss Bank is gradually expanding its territory by targeting loans for medium- and low-credit customers. As of last month, the proportion of loans to medium- and low-credit customers was 31.75%, the highest among the three banks.

This content was produced with the assistance of AI translation services.