Toss Bank raised rates on its time deposit with an upfront interest payment structure as it moved to strengthen its deposit-gathering competitiveness.

Toss Bank said on Wednesday it increased rates on its “time deposit that pays interest upfront.” The annual rate was adjusted to 2.7 percent for a three-month term, 2.8 percent for six months and 3.0 percent for 12 months, before tax. That is up 0.2 to 0.3 percentage points from before.

The product pays interest that would accrue during the deposit period at the time of subscription. Unlike typical time deposits that pay interest at maturity or at an agreed date, customers can receive the interest immediately after signing up, widening options for cash management.

The deposit amount ranges from a minimum of 1,000,000 won to a maximum of 1 billion won. Terms are three, six and 12 months. Customers can use the prepaid interest for living expenses or reinvest it in other financial products, diversifying their management strategy.

Toss Bank plans to use the rate increase to strengthen the product’s competitiveness and actively absorb demand for short-term cash management.

A Toss Bank official said, "This rate increase is a measure to expand customer benefits while also enhancing product competitiveness." The official added, "We will continue to introduce products that reflect market conditions and customer demand."