Ordinary savings interest rates to reach 0.5%. Where should you keep your civil servant salary account and emergency fund? | November effective dates

Many people who saw the news that “ordinary savings interest rates are going to reach 0.5%” have likely wondered when their own accounts will see an increase.

Following the Bank of Japan’s decision on September 18, 2026, to raise the policy interest rate to around 1.25% mega banks and Japan Post Bank have announced that they will raise ordinary savings interest rates from 0.4% to 0.5%.

I’m Hiro, a local government employee in my 30s. I won’t recommend any specific banks here. I have organized information based on what has been confirmed in each bank’s announcements regarding “how much your money will grow” and “how to think about your salary account and emergency fund” (as of October 2, 2026).

The bottom line first

• Ordinary savings rates will reach 0.5% starting November 2 for the three mega banks and Sony Bank, and November 9 for Japan Post Bank

• No action is required. After the effective date, the new interest rate will apply to existing balances

• The difference between 0.4% and 0.5% on 1 million yen is 1,000 yen per year (approx. 797 yen after tax)

• Since the difference is small, there is no need to rush to change your salary account

• For emergency funds, prioritize ease of withdrawal over interest rates. Some banks have not yet finalized their fixed-term deposit rates

When will rates rise? Effective dates for major banks

• Mizuho Bank, MUFG Bank, Sumitomo Mitsui Banking Corporation: 0.5% from Monday, November 2, 2026

• Sony Bank: 0.50% from November 2, 2026

• Japan Post Bank (Ordinary Savings): 0.500% from Monday, November 9, 2026

Some online banks and others may raise rates earlier in October or offer preferential rates if certain conditions are met. Please check the official announcements of each bank for the latest information.

Japan Post Bank has announced that since interest on ordinary savings is calculated based on daily balances, the new interest rate will apply to existing balances from November 9 onwards. No action is required on your part for any of these banks.

How much will you earn on 1 million yen?

These are estimates assuming the balance remains unchanged for one year. Deposit interest is subject to a 20.315% tax.

• 500,000 yen: Approx. 1,594 yen → approx. 1,992 yen per year after tax (approx. 398 yen increase)

• 1 million yen: Approx. 3,187 yen → approx. 3,984 yen per year after tax (approx. 797 yen increase)

• 3 million yen: Approx. 9,562 yen → approx. 11,953 yen per year after tax (approx. 2,391 yen increase)

It is genuinely pleasing that interest rates are rising. However, it is important to first keep in mind that in monetary terms, this amounts to only a few hundred to a few thousand yen per year.

Things to keep in mind regarding civil servant salary accounts

This time, both mega-banks and Japan Post Bank are raising rates to 0.5%, so for a typical salary account, the interest rate will rise without you having to do anything.

• Salary transfer accounts are often designated and registered at the workplace

• If you change your account, you may need to notify your department

• You may also have the same account registered for mutual aid association loans or premiums

I do not believe there is any need to rush to change accounts for a difference of about 1,000 yen per year on 1 million yen. If you want to use a bank with a higher interest rate, it is sufficient to leave your salary account as is and just transfer a portion of the funds.

Divide the placement of emergency funds and bonuses based on their “role”

• For living expenses and automatic withdrawals: Priority on immediate availability → Ordinary savings in salary account

• Emergency funds (several months of living expenses): Ease of withdrawal priority → Ordinary savings (can be kept in a separate account)

• Money to be used within a few years: Priority on principal stability → Mutual aid savings, time deposits, government bonds for individuals, etc.

• Money not to be used for 10+ years: Grow over a long period → New NISA, etc. (subject to market fluctuations)

The role of emergency funds is to be available immediately in case of sudden expenses or illness. Keeping them in ordinary savings is fine. I think it is appropriate to simply consider that this rate hike means those funds will now earn a little more interest.

Furthermore, if the rate of inflation is higher, the real value of your money will decrease. Please consider whether to keep money you won’t use for a long time in ordinary savings based on when you plan to use it.

Some banks have not yet decided on their time deposit interest rates

Japan Post Bank plans to raise rates on time-based savings as well, but as of October 2nd, the target products, interest rates, and application dates are listed as “to be announced once finalized,” and have not yet been decided.

• It is not too late to make a decision after seeing the official announcement for new time deposit rates

• Do not put emergency funds into time deposits, as they are difficult to withdraw until maturity

• Compare with other “principal-stable” options like mutual aid savings or government bonds for individuals

When interest rates are on an upward trend, I believe it is appropriate to wait until things are finalized before acting.

Summary

• Following the Bank of Japan’s interest rate hike, ordinary savings rates at various banks are increasing from 0.4% to 0.5%.

• Effective dates are November 2nd for the three megabanks and Sony Bank, and November 9th for Japan Post Bank. No action is required.

• The difference on a 1 million yen balance is 1,000 yen per year (approximately 797 yen after taxes).

• Since changing your salary account may require notification to your workplace, there is no need to rush to switch it.

• For emergency funds, prioritize accessibility by using ordinary savings. Wait for official announcements before considering fixed deposits.

▼ See the blog for a list of effective dates by bank (including online banks) and how to think about where to keep your money.

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※ This article is provided as information organized from the personal perspective of a local government employee in their 30s, based on public information and reports from financial institutions as of October 2, 2026. It does not solicit the use of any specific financial institution or product. Interest rates, effective dates, and conditions are subject to change. Interest amounts are estimates assuming a constant balance for one year. Please check the official websites of each financial institution for the latest information.

Sources: Announcements from Japan Post Bank and Mizuho Bank (September 18, 2026), Sony Bank (September 24), and Impress Watch (September 20).