Ordinary deposit interest rates to reach 0.5% in November. Interest on 1 million yen and a quick reference table by bank
Starting in November, the interest rate on ordinary deposits at major banks will rise to 0.5%. Mitsubishi UFJ Bank, Sumitomo Mitsui Banking Corporation, and Mizuho Bank will increase their rates from 0.4% to 0.5% starting November 2, while Japan Post Bank will do the same for ordinary savings accounts starting November 9. Impress Watch reports that this move follows the Bank of Japan’s decision on September 18 to raise the policy interest rate to approximately 1.25%.
As of June, the interest rate for ordinary deposits at megabanks was 0.3%. This means the rate has risen from 0.3% to 0.4% and now 0.5% in less than half a year.
However, even hearing “0.5%” makes it difficult to know how much will actually be credited to one’s account. The interest on 1 million yen deposited for one year is 5,000 yen. Since taxes are deducted from this, the amount received is approximately 3,984 yen.
The first line of the quick reference table
In the paid section, I have created a quick reference table listing the interest rates and application dates for each bank, as well as the annual interest (before and after tax) for various deposit amounts. For example, here is one line.
Mitsubishi UFJ Bank, Sumitomo Mitsui Banking Corporation, Mizuho Bank (0.5% from November 2): If you deposit 1 million yen for one year, the interest is 5,000 yen before tax and approximately 3,984 yen after tax. This is an increase of about 797 yen compared to when the rate was 0.4%.
Rising interest rates are generally good news for depositors. However, the dates and conditions for these increases vary by bank, and the interest earned on the same deposit amount will differ. The amount of the increase will also vary depending on which account you have your money in and how much is deposited.
※ This article uses generative AI to assist with research and writing. Please check the primary source information when making important decisions.
In the paid section that follows, I have included a list of new interest rates and application dates for 10 banks, including megabanks, Japan Post Bank, and online banks, as well as a quick reference table for interest on deposit amounts ranging from 100,000 yen to 10 million yen. I have also summarized how interest taxes are calculated, deposit limits (the Japan Post Bank deposit limit and the amount protected if a bank fails), how to read interest rate conditions, and things to check before reviewing your accounts.