Toss Bank Launches 12-Month Fixed Deposit with Upfront Interest

Toss Bank will begin offering its "12-Month Fixed Deposit with Upfront Interest" product starting December 17.

The product offers an annual interest rate of 2.80%, and customers can receive one year’s worth of interest upfront as soon as they sign up. For example, if a customer deposits 10 million won, they will immediately receive approximately 280,000 won (before tax) in interest, allowing them to use a lump sum without having to wait until maturity.

The minimum deposit is 1 million won, and the maximum is 1 billion won. Customers can easily sign up through the Toss Bank app. Under the Depositor Protection Act, both principal and interest are protected up to 100 million won per person.

The key feature of the "Fixed Deposit with Upfront Interest" is that the interest for the deposit period is paid directly to the linked account on the day of subscription. Withholding tax is deducted not on the day the interest is received, but on the day the deposit is closed; at that time, tax is subtracted from the principal. In the event of early termination, the amount paid includes the after-tax early termination interest, with the upfront interest received at sign-up deducted.

With the launch of this 12-month product, Toss Bank has completed its lineup of fixed deposits with terms of 3, 6, and 12 months. Customers can choose products based on their desired fund management period: 3 months for short-term savings, 6 months for medium-term fund management, and 12 months for long-term financial planning.

Since the initial launch of the 3- and 6-month products in March 2023, the number of subscribers to the fixed deposit with upfront interest has reached 700,000 as of the end of 2025. The cumulative number of accounts opened is 2.24 million, with an average of 3.3 accounts per person. The total cumulative deposit amount is 44.6751 trillion won, and the bank has paid out 435.1 billion won in interest to customers. The reinvestment rate is 47%, meaning nearly half of customers re-enrolled after maturity. By age group, those in their 40s accounted for 26.1%, those in their 50s for 24.1%, and those in their 30s for 22.4%, with the 30s to 50s age range-who are typically more economically active and have greater discretionary funds-making up 72.6% of all customers.

Meanwhile, Toss Bank has been converting the interest payment structure of its existing fixed deposits to allow customers to choose when to receive interest. Options include "Fixed Deposit with Upfront Interest" for immediate interest, "Receive Interest Now" for interest at a chosen time, and "Split Savings Account," which applies daily compound interest automatically-allowing customers to select their preferred interest payment schedule.

A Toss Bank representative stated, "With the launch of the 12-month product, we are now able to meet a wide range of customer needs for both short- and long-term fund management. Receiving interest upfront at the time of subscription allows customers to utilize a lump sum whenever they wish, which will help with financial planning."