Toss Bank Launches Fund Service: "Invest with as Little as 1,000 Won or Account Interest"

17 funds investing in stocks, bonds, gold, MMFs, and other assets

Toss Bank has launched a “Fund Service” that automatically invests interest earned on deposit accounts in funds. To make the service more convenient and attract more customers, it set the minimum investment at 1,000 won and chose easy-to-understand names that explain what each fund invests in, instead of using complex fund names.

Toss Bank said on November 12 that it had launched a fund service comprising 17 funds investing in domestic and overseas stocks and bonds, gold, money market funds (MMFs), and other assets. The service is available to individual customers aged 19 or older who hold a Toss Bank account in their own name. Toss Bank sells the funds, while each asset management company manages them.

Each fund is presented with both its official name and a name that helps customers understand its investment strategy. For example, Kyobo Power Index Securities Investment Trust 1 (Equity) Ce is displayed as “Track the KOSPI 200,” while Korea Investment Gold Accumulation Special Assets Investment Trust (Gold Fund of Funds) Ce is displayed as “Save for Gold with Small Amounts.”

The fund categories include major indexes, dividend stocks, global semiconductors, and government and public bonds. Funds with complex derivatives structures, leverage, or inverse strategies have been excluded. Risk ratings range from Grade 1 (very high risk) to Grade 6 (very low risk).

There are three ways to invest: a one-time purchase, regular investments, and automatic investment of account interest. “Save Regularly,” the regular investment option, lets customers choose an amount and invest daily, weekly, or monthly, starting at a minimum of 1,000 won. It is available for 16 funds, excluding MMFs.

When customers activate “Save Interest in Funds,” interest paid into their Toss Bank account is automatically invested in a fund they select. The service links saving and investing by automating the transfer of interest earned on deposits into investment assets.

All 17 funds launched are online-only Ce classes, with no purchase or redemption fees. However, each fund is subject to total fees, including management and sales fees, and additional costs, such as securities transaction costs, may also apply. Amounts invested using account interest may also result in a loss of principal, depending on investment performance.

For “Hana Individual MMF No. 1 Ce,” customers who request a redemption between 9 a.m. and 5 p.m. on a business day can receive the proceeds immediately, up to the daily payment limit. Requests made outside these hours or exceeding the limit are subject to a separate payment schedule. The total annual fee is 0.23%.

For the overseas equity funds Global Semiconductor Investing and Track the Nasdaq 100, redemption proceeds are paid two business days after the request date if the request is made before 5 p.m. on a business day.

When customers first sign up, Toss Bank conducts an investment profile analysis, checking factors such as their investment experience and income. For customers aged 65 or older, it provides enhanced protection procedures and follow-up calls. To mark the launch, the bank is also offering 3,000 won to customers who open a fund account and 100 won to those who complete the investment profile analysis.

A Toss Bank representative said, “We designed the service so customers can understand what they are investing in through easy-to-understand fund names and invest in funds with small amounts or even the interest earned on their accounts. We will provide thorough information about the funds and their risks and strengthen consumer protection.”

Toss Bank headquarters in Gangnam-gu, Seoul. Photo by Kang Jinhyung aymsdream@

This content was produced with the assistance of AI translation services.