Do You Like Interest Rates? Knowing Interest Rates Changes How You See Deposits, Loans, and Investments

“Do you like interest rates?”

Even if asked that, many people may have never thought about whether they like interest rates or not.

However, interest rates are not just about deposits.

They are related to mortgage repayments, corporate borrowing, stocks, bonds, and foreign exchange as well.

The money game has changed from the past to the present.
Interest rates, investment options, and prices are all changing.

That is precisely why understanding interest rates is the first step toward thinking about how to manage your money from now on.

*The information regarding interest rates in this article is based on publicly available information confirmed as of October 9, 2026.

Table of Contents

1. What are interest rates?

2. How has the way to grow money changed from the past to the present?

3. What happens when interest rates rise?

4. Perspectives on deposits, loans, and investments

5. What beginners can do starting today

6. Summary

7. Chiharu’s YouTube and Methods

1. What are interest rates?

Simply put, interest rates are the fee incurred when borrowing or lending money.

When you deposit money in a bank, you receive interest from the bank.
This is like lending money to the bank.

Conversely, when you borrow money from a bank or financial institution, the borrower pays interest.

In short, interest rates work as:

as well.

For example, if you deposit 1 million yen for one year at an annual interest rate of 1%, the pre-tax interest is 10,000 yen by simple calculation. Since interest is subject to tax, the actual amount you receive will be less.

If the interest rate is 0.1%, the pre-tax interest on the same 1 million yen is 1,000 yen per year.

Even a small change in interest rates can have a significant impact on your household budget if the amount deposited or borrowed is large.

2. How has the way of growing money changed from the past to the present?

In the past, there were periods when deposit interest rates were higher than they are now.

Back then, it was an environment where it was easy to feel that your interest was growing by keeping money in savings or time deposits.

On the other hand, in the long-lasting era of low interest rates, it became difficult to grow money significantly through deposits alone. As a result, interest has grown in asset formation using assets with price fluctuations, such as stocks and investment trusts.

Furthermore, a new NISA started in 2024, with a total annual investment limit of up to 3.6 million yen and a total tax-exempt holding limit of 18 million yen. The system, which makes profits from investments tax-free, has become easier to use than before.www.fsa.go.jp

And now, we have entered an era where interest rates are moving again.

At its Monetary Policy Meeting in September 2026, the Bank of Japan decided on a policy to keep the uncollateralized overnight call rate, which is the policy interest rate, at around 1.25%. While this is not the bank deposit interest rate or mortgage interest rate itself, it is one of the benchmarks that influences interest rates at financial institutions.www.boj.or.jp

In other words, we are now

transitioning from an era where it is difficult to grow money with deposits alone to an era where you think about where to place your money while watching interest rates, prices, and investment destinations

.

3. What happens when interest rates rise?

When interest rates rise, several changes occur in daily life and the economy.

There is a possibility that interest on deposits will increase

If bank deposit interest rates rise, the interest you receive on your deposited money may increase.

However, just because the Bank of Japan raises interest rates does not mean that all banks will raise their deposit interest rates by the same margin. Conditions also differ for ordinary deposits, time deposits, and promotional interest rates.

Loan repayment burdens may increase

For variable-rate mortgages and similar loans, future repayment amounts and interest burdens may change due to interest rate revisions.

However, repayment amounts do not change in the same way for everyone immediately after interest rates rise. It depends on the contract terms, the timing of the revision, and the rules regarding repayment amounts.

If you are using a loan, it is a good idea to check your contract and notifications from your financial institution, and to calculate your repayment amount in the event that interest rates rise.

It also affects the price movements of investment products

When interest rates rise, it can affect the prices of bonds and stocks.

For example, in a phase where interest rates are rising, the prices of previously issued bonds may fall. Stock prices may also move as companies’ borrowing burdens and estimates of future profits change.

However, it is not a simple relationship where “if interest rates rise, stock prices will definitely fall.” Economic conditions, corporate performance, prices, exchange rates, and investor sentiment are also involved.

The same applies to exchange rates. The interest rate differential between Japan and overseas is one factor that moves exchange rates, but it does not determine the direction of exchange rates on its own.

4. Perspectives on deposits, loans, and investments

When interest rates move, it becomes easier to organize your thoughts by dividing your money into the following three categories.

Deposits: Protecting money you need to use soon

For living expenses and money set aside for sudden illness, unemployment, or repairs, it is important that you can use it immediately when needed.

Even if deposit interest rates rise, there is no need to move money necessary for daily life into investments that fluctuate in value.

Loans: Checking the possibility of increased payments

If you have borrowings such as a mortgage or car loan, check the type of interest rate and the timing of revisions.

Just feeling anxious that “interest rates might rise” will not lead to any countermeasures. It is important to look at your contract details and understand how your repayment amount might change.

Investments: Deciding on your purpose and time horizon

When it comes to investing, you don’t need to rush to start or switch products just because interest rates have moved.

When will you need the money, how much of a price drop can you withstand, and how much can you comfortably afford to invest each month? If you decide on your own criteria beforehand, you will be less likely to be swayed by market fluctuations.

NISA is a system where investment profits are tax-free, but the investment itself does not guarantee the principal. Think of the system and the product risks separately.www.fsa.go.jp

5. Things beginners can do starting today

First, let’s check the following three things.

1. Check your deposit interest rates
Look at the interest rates for savings and time deposits, the deposit terms, and the conditions for early withdrawal.

2. Check your loan interest rate type
Check whether it is a fixed or variable interest rate, when it will be reviewed, and the rules for changes in repayment amounts.

3. Define your investment goals
Decide what you are investing for, such as “for retirement” or “for a major expense in a few years.”

You don’t need to jump into just one of deposits, loans, or investments by looking only at interest rates.

What is important is knowing where your money is placed and under what conditions it increases or decreases.

6. Summary: Interest rates are the gateway to reading the flow of money

Interest rates are not just numbers found in difficult economic news.

Deposit interest, loan repayments, corporate financing, stocks, bonds, and foreign exchange.
They are all connected to our daily lives and the flow of money in the world.

Interest rates and investment systems have changed from the past to the present.
Therefore, instead of keeping your money in the same place based on old common sense, it is important to check the current environment and think about the method that suits you best.

“Do you like interest rates?”

Whether you like them or not, knowing about them will help you see the movement of money a little more clearly.

Knowing about interest rates is preparation for not being swayed by money.
Let’s start by checking the interest rates for your deposits, loans, and investments one by one.

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