"Over 100 Million Also 2.3% Annually"... Toss Bank Removes Parking Account Amount Limit Again

Removal of Amount Limit After 10 Months
Competition Heats Up for Deposit-Linked Parking Accounts

[Asia Economy Reporter Minwoo Lee] Toss Bank will offer an annual interest rate of 2.3% (before tax) even on amounts exceeding 100 million KRW.

On the 20th, Toss Bank announced that it will apply a 2.3% interest rate on the 'Toss Bank Account,' a demand deposit account, regardless of the amount, starting from midnight on the 21st. Previously, interest of 2.3% was paid only up to 100 million KRW, and only 0.1% interest was paid on amounts exceeding that.

At its launch in October last year, Toss Bank also provided an annual interest rate of 2% without any amount limit. However, at that time, financial authorities limited Toss Bank's total household loans to 500 billion KRW, which exhausted its revenue sources, leading to cost burdens and the decision to apply a 100 million KRW limit starting this year, two months later.

The reason for lifting the amount limit again appears to be in response to competing internet-only banks such as Kakao Bank and K Bank recently raising their parking account interest rates to 2.6% (applied up to 100 million KRW) and 2.5% (applied up to 300 million KRW), respectively.

Toss Bank is also emphasizing the 'Receive Interest Now' feature, which it was the first in the financial sector to attempt. Customers can receive interest once daily whenever they want, allowing for a daily compound interest effect.

About 2.1 million Toss Bank customers have used the Receive Interest Now feature at least once. Among them, 82.3% (1.73 million) use it regularly. The total interest customers have received over the seven months since the service launch amounts to 141.7 billion KRW.

A Toss Bank official stated, "Thanks to the support of our customers, Toss Bank has been able to grow, and we wanted to restore the identity we had at launch," adding, "We will continue to repay our customers with services and trust for them."

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