Toss Bank to pay daily deposit interest

Toss Bank, South Korea’s internet only bank, said Wednesday it will pay daily deposit interest to its customers for the first time in the banking industry.

Toss Bank account owners can simply click on the “receive now” button to be paid with daily deposit interest, instead of receiving it monthly.

With the service, users can withdraw their money including the deposit interest at any time they want.

For instance, if customers deposit 1 million won ($805) into the account, they can save 55 won of interest every day, according to a Toss Bank official. It is calculated by dividing the yearly interest of 2,000 won over 365 days.

“Our new service started with a simple question: Why does the bank get to decide when to pay deposit interest to customers?” the official said.

“The bank is a place that customers can trust to build wealth, and they should be rewarded even if they deposit money for just one day.”

Users who don’t choose the daily deposit interest service can receive monthly interest every third Saturday of the month.

Toss Bank plans to continue the service by the end of this year. After a certain period of a stabilization process, it will be made into a regular service, the bank said.

By Byun Hye-jin (hyejin2@heraldcorp.com)