Toss Bank launched a savings product on April 24 for new customers that offers an interest rate of up to 10 percent a year.

Only customers with no history of opening a Toss Bank account before April 21 can sign up. Customers can open an account at the same time when signing up, and it is limited to 1 account per person. Sales run until May 19 but will end early if 100,000 accounts are filled on a first-come, first-served basis.

The rate is up to 10 percent a year before tax, combining a base rate of 1 percent a year and a preferential rate of 9 percent a year. The preferential rate applies if at least 1 automatic payment, such as giro, CMS, firm banking or building maintenance fees, occurs from the linked account between sign-up and the day before maturity, and the customer keeps an automatic transfer registration in place through maturity.

The product is a flexible-deposit instalment savings plan with a contract term of 3 months. Customers can deposit at least 1 won per payment, and the monthly maximum deposit limit is 500,000 won. Deposits are allowed only by direct transfer from the linked account. At maturity, principal and interest are automatically deposited into that account. Customers can also sign up under a comprehensive tax-exempt savings plan, and only the base rate applies in case of early termination.

Toss Bank is expanding interest-rate benefits to attract new customers. Since April 17, it has been running a preferential interest-rate promotion for demand deposit accounts for new customers. Customers who open an account through the event page receive an annual rate of 2 percent before tax for 3 months, combining a base rate of 1 percent a year and a preferential rate of 1 percent a year, with no cap.

A Toss Bank official said the Welcome Savings product was designed so new customers can feel tangible interest-rate benefits. The official said it expected an increase in customer inflows because it offers a high rate by meeting only the automatic payment condition.