Toss Securities Raises Deposit Fee to 1% Per Year... 5 Times Higher Than Average Domestic Securities Firms
From the 16th, a 1% Annual Fee on Investor Deposit Usage
Drastic Increase of 0.8 Percentage Points Compared to Before
[Asia Economy Reporter Myunghwan Lee] Toss Securities announced on the 16th that it will raise the 'deposit utilization fee,' which corresponds to the interest paid on customers' deposit account balances, from the existing 0.2% to 1% per annum (before tax), an increase of 0.8 percentage points.
The deposit utilization fee is the interest income generated when a securities company deposits the cash assets invested by investors in their accounts with securities finance institutions. The utilization fee rate can be set according to changes in the interest rates of the institutions where the securities company deposits the funds.
Toss Securities' deposit utilization fee of 1% per annum exceeds the industry average fee by five times. According to disclosure data from the Korea Financial Investment Association, the average deposit utilization fee among 35 domestic securities companies is 0.199% per annum. Toss Securities plans to enhance investor benefits by returning most of the utilization income generated from customers' deposits back to the customers.
From the 16th, all Toss Securities customers can receive an annual interest rate of 1% on their deposits without any amount restrictions. However, this interest applies only to Korean won assets and does not apply to foreign currency (dollar) assets or invested amounts.
The interest payment cycle has also been changed to one month to increase liquidity of the interest amount. On the last business day of each month, the average deposit balance up to the previous day is calculated and interest for the current month is paid. Customers can always check the expected interest to be paid for the current month on the 'Total Assets' page.
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A Toss Securities official said, "We have made the bold choice to forgo profits generated from customer deposits and return them to customers," adding, "We will create an investment service that customers can trust and trade with from the moment they deposit their investment funds."
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