[From November] Ordinary Deposit Interest Rates Rise to 0.5% | When does it start? How much will the net interest increase?

“I saw in the news that ordinary deposit interest rates are going up, but do I need to do anything?”

I don’t recall receiving any notice from the bank. I’m not sure if I’ll lose out if I don’t do something, or if it’s fine to just leave it alone.

“If the rate is 0.5%, how much will I actually earn if I deposit 1 million yen?”

The number sounds high when you hear it. But I’ve never calculated the amount after taxes are deducted.

“I hear online banks have higher interest rates, should I move my money?”

Advertisements show high numbers. But the conditions are so detailed that I don’t feel like reading them.

Do you have these kinds of questions? I was curious too, so I looked into the Bank of Japan’s announcements and official notices from various banks to organize the information.

Why are deposit interest rates rising now?

At its Monetary Policy Meeting on September 18, the Bank of Japan decided to raise the policy interest rate from around 1.0% to around 1.25%. This applies from September 24.

The policy interest rate is a benchmark for interest rates when banks lend money to each other. When this rises, the interest rates banks offer on deposits also tend to rise.

In response to this, the three megabanks (MUFG Bank, Sumitomo Mitsui Banking Corporation, and Mizuho Bank) took action on the same day, September 18. They announced that they would raise the interest rate on ordinary deposits from 0.4% to 0.5%.

The Nikkei reported that this level is the highest in 34 years.

In this article, I will organize the information in the following order:

• When and at which banks will it rise?

• How much will the net interest increase after taxes?

• How does it compare to the rise in prices?

• Who doesn’t need to do anything, and who will see a difference by reviewing their accounts?

When will it rise? | Application dates and interest rates by bank

First, to give you the conclusion, you do not need to perform any procedures yourself for the interest rate hike on ordinary deposits. Once the application date arrives, the interest rate on your current account will change automatically.

The application dates for the major banks and Japan Post Bank are as follows.

• MUFG Bank, Sumitomo Mitsui Banking Corporation, Mizuho Bank: From November 2, 0.4% → 0.5%

• Japan Post Bank (Ordinary Savings): From November 9, 0.4% → 0.5%

According to the official announcement from MUFG Bank, the revision date is Monday, November 2, 2026, with the rate changing from 0.40% before the change to 0.50% after.

Japan Post Bank has also announced on its official website that it will raise the interest rate on ordinary savings to 0.500% (from 0.400% before the change) starting November 9.

Internet banks and others also raising rates one after another

Internet banks and others are also announcing rate hikes at roughly the same time. According to a summary by Impress Watch (September 20, 2026), the details are as follows.

• SBI Shinsei Bank: 0.5% from October 13 (0.55% for the “Diamond Stage” that meets conditions)

• Docomo SMTB Bank: 0.5% from October 1 (0.51% for the conditional “SBI Hybrid”)

• au Jibun Bank: 0.51% from November 1 (up to 0.85% with conditional preferential treatment)

• PayPay Bank: 0.4–0.7% depending on the balance from November 1 (an additional 0.1% per year in PayPay points is added, for a total equivalent of up to 0.8%)

• Rakuten Bank: 0.5% from November 2 (up to 0.58% with “Money Bridge” linked to a securities account, and up to 0.84% including the bonus interest program)

• Aozora Bank (BANK): From October 1, 1.2% for amounts up to 1 million yen, and 0.75% for the portion exceeding 1 million yen

Looking at them lined up like this, it is clear that the “base interest rate without conditions” has converged to around 0.5% for many banks.

There are exceptions. PayPay Bank offers 0.4% if the balance is low, and Aozora Bank offers 1.2% for up to 1 million yen without conditions.

The difference lies in the “add-ons when conditions are met” and the “tiers based on balance.” We will look at this in detail in the paid section.

Please note that the interest rates and conditions for each bank may change. Before actually using them, please check the latest information on each bank’s official website.

How much is the net interest? | Estimates for 1 million, 3 million, and 10 million yen

Next, let’s calculate how much it will actually increase.

Deposit interest is subject to a 20.315% tax. The breakdown is 15% income tax, 0.315% special reconstruction income tax, and 5% resident tax. Since this tax is deducted from the interest at the source (withholding separate taxation), there is no need to file a tax return.

The estimated net amount after tax when depositing the same balance at the same interest rate for one year is as follows.

• 1 million yen: approx. 3,190 yen at 0.4% interest, approx. 3,985 yen at 0.5% (difference is approx. 800 yen)

• 3 million yen: approx. 9,560 yen at 0.4% interest, approx. 11,950 yen at 0.5% (difference is approx. 2,390 yen)

• 10 million yen: approx. 31,870 yen at 0.4% interest, approx. 39,840 yen at 0.5% (difference is approx. 7,970 yen)

The calculation method for 1 million yen at 0.5%, for example, is as follows.

• Pre-tax interest: 1 million yen × 0.5% = 5,000 yen

• Income tax, etc. (15.315%): 765 yen (rounded down to the nearest yen)

• Resident tax (5%): 250 yen

• Net amount: 5,000 yen – 765 yen – 250 yen = 3,985 yen

Actual interest is calculated based on the daily balance and that day’s interest rate. Therefore, this estimate is a guideline and may vary by a few to several dozen yen.

Interest is paid twice a year

Another thing to know is the timing when interest on ordinary deposits is paid.

According to MUFG Bank’s ordinary deposit regulations, interest is credited to the account on the business day following the third Saturday of February and August each year.

In other words, even if the interest rate rises on November 2nd, the interest for that period will not be credited to the account until around February of next year.

The timing varies by bank, so if you are concerned, it is safe to check your bank’s regulations.

Even if it is the ‘first time in 34 years,’ the amount is small

Hearing that there is an 800 yen difference per year on 1 million yen, some people may feel it is ‘less than expected.’

I felt the same way when I calculated it.

It is true that interest rates have risen, but it is not enough to significantly change household finances just from ordinary deposit interest.

Rather, what is important is the ‘comparison with prices’ that we will look at in the next chapter.

Compared to rising prices | The ‘real value’ of deposits is decreasing

According to the Ministry of Internal Affairs and Communications, the national consumer price index (the movement of prices for goods and services) in August 2026 rose by 1.9% compared to the same month of the previous year.

On the other hand, the interest rate for ordinary deposits is 0.5%, which is approximately 0.4% after taxes.

Roughly speaking, this is a situation where prices are rising by 1.9% per year, while deposits are only increasing by 0.4% per year.

If we think in terms of 1 million yen, after one year, the deposit will become approximately 1,004,000 yen. However, the items that could be bought for 1 million yen a year ago are calculated to have risen in price to approximately 1,019,000 yen.

This difference means that “even though the number of your money has not decreased, what you can buy has decreased slightly.” This is sometimes called “real depreciation.”

However, this is a simple calculation assuming that the 1.9% rise continues for one year. Price movements change from month to month.

Also, this does not mean that “deposits are a loss, so you should move them to something else immediately.”

Ordinary deposits have an important role in that they can be withdrawn at any time and the principal (the amount deposited) does not decrease. It is standard practice to keep money for living expenses and sudden expenditures in an ordinary deposit account.

Common questions | Notice, time deposits, housing loans, parents’ accounts

I have summarized four questions that I myself encountered while researching.

Q1. Will I receive a notice from the bank?

Changes in interest rates for ordinary deposits are often announced on the bank’s website or via notices at the branch. It is not guaranteed that a letter will be sent to each individual.

Even if you do not receive a notice, the interest rate will change once the effective date arrives.

Q2. Will the interest rate on time deposits also increase automatically?

No, you need to be careful here.

It is common for time deposits that have already been set up to remain at the interest rate they were set at until maturity. The interest rate will not change midway through due to this increase in ordinary deposit rates.

The new interest rate is applied when the deposit is automatically renewed at maturity or when a new one is set up. I will organize the details regarding time deposits a bit more in the next chapter.

Q3. Will housing loan interest rates also rise?

An increase in the policy interest rate can affect not only deposits but also variable-rate housing loans.

The timing of variable interest rate reviews and when repayment amounts change depends on the bank and the loan contract. Those who have borrowed with a variable interest rate should look at both the increase in deposit interest and the increase in loan interest. Doing so will make it easier to grasp the changes in your overall household finances.

Q4. How should I think about the money in my parents’ accounts?

There may be cases where a significant amount of money is sitting in a parent’s account that has not been active for a long time.

Deciding where to keep a parent’s money is ultimately up to the parent themselves. To avoid trouble, it is best to start by simply confirming together which banks they have accounts with.

How should I think about fixed deposits?

You might also wonder, “If ordinary deposit rates are going up, will fixed deposit rates go up even more?”

Fixed deposit interest rates are determined separately from ordinary deposits

Fixed deposit interest rates are reviewed at different times than ordinary deposits.

For example, Japan Post Bank has announced that it plans to raise interest rates on fixed-term savings as well. However, the specific products, interest rates, and start dates are still at the “to be announced once finalized” stage (as of September 27).

For fixed deposits at megabanks, please check the latest interest rates at each bank’s branch or website.

Be careful with fixed deposits when “interest rates are on the rise”

If you lock in a long-term fixed deposit while interest rates are rising, it will be difficult to switch if higher rates become available later.

If you cancel mid-term, you will generally be subject to a lower “early withdrawal interest rate.”

Therefore, now that the future of interest rates is difficult to predict, you might consider the following approach:

• Money with a set usage date: Set the term to match that date.

• Money without a set usage date: Choose a shorter term, such as one year, and review it at each maturity.

There is no single right answer. It becomes easier to choose if you decide “when this money will be used” first.

People who don’t need to do anything vs. people who will see a difference by reviewing

Based on the above, let’s organize what you should do.

People who don’t need to do anything

If the following applies to you, you don’t need to do anything in particular.

• You have a balance in your ordinary deposit account equal to a few months of living expenses

• You want to continue using your current bank for salary deposits and automatic withdrawals

• You find it burdensome to open and manage additional accounts

Interest rates will rise automatically. Sometimes, the hassle of opening and managing new accounts for a difference of a few hundred to a few thousand yen a year can be more of a burden.

People who could benefit from a review

On the other hand, the following people may see a difference if they review their accounts.

• You have several million yen or more in an ordinary deposit account that you do not plan to use for the foreseeable future

• You already have an online bank or brokerage account and can easily meet the requirements

• Your parents have a significant amount of money in an account that has been inactive for a long time (the decision to move it rests with the parents themselves)

For example, suppose you move 3 million yen from an account with a 0.5% rate to an account with a conditional 1% rate (this is a hypothetical figure not in the list). The difference in after-tax interest is calculated to be about 12,000 yen per year (an estimate assuming the conditions continue to be met).

However, high interest rates at online banks usually come with “conditions.”

If you move your money based only on the advertised numbers, you may find that “the interest rate wasn’t what I expected” or “the amount exceeding the limit was subject to the standard interest rate.”

In the paid section, I have organized the following three points.

• Three pitfalls to watch for when reading conditions for bonus interest rates

• Estimates of net interest by bank when depositing 3 million yen

• Checklist before switching deposits (including the scope of deposit insurance)

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