Toss Bank, a South Korean digital bank, has reported sales of over KRW 1 trillion (approx. $746 million) for its "Term Deposit, where you leave your money and get the expected interest first" product in just 33 days since its launch.
The innovative term deposit product attracted customers quickly, reaching KRW 100 billion in four days and KRW 500 billion in 15 days.
Toss Bank's First Term Deposit product allows customers to receive interest as soon as they sign up.
The interest rate is 3.5% per annum, with a minimum deposit of KRW 1 million and a maximum deposit of KRW 1 billion.
In addition, customers can choose a subscription period of 3 months or six months, according to their convenience.
Data analysis of subscribers shows that 67% of customers chose a 3-month subscription period, while 33% chose six months.
The highest number of subscribers were in their 40s (30.5%), followed by those aged 50 and above (26.8%), 30s (26.1%), 20s (15.6%), and teenagers (1.0%).
Toss Bank's Fixed Deposit product offers a unique experience where customers start earning interest as soon as they sign up.
For example, a customer who deposits KRW 100 million for three months will receive KRW 880,000 before tax.
The interest received can then be reinvested or used freely.
After the product matures, customers can quickly rejoin up to three times using the "auto-renewal" service.
Of course, they can terminate their account anytime, but the first interest earned, minus the termination fee, will be deducted from the principal amount.
Beginning May 17, Toss Bank will remove the single-person account restriction for the time deposit, allowing customers to open multiple CDs without account limits, depending on their savings goals.
A Toss Bank representative stated that the bank would continue to provide benefits and financial services that customers can feel immediately, offering more transparent and intuitive interest benefits.
