Following the Bank of Japan's rate hike, banks have announced increases in ordinary deposit rates. The three megabanks will raise rates to 0.5%, while Aozora Bank will move quickly to 1.2%. The outlook for winter bonus term deposit rates is also discussed.
Following the Bank of Japan's decision at its September 2026 monetary policy meeting to raise the policy rate from 1.0% to around 1.25%, banks are moving to raise ordinary deposit rates. As expectations grow that rates could be raised again in December, attention is focused on future interest rate trends.
The three non-megabanks, Mitsubishi UFJ Bank, Sumitomo Mitsui Banking Corporation and Mizuho Bank, announced that they would raise ordinary deposit rates from the current 0.4% to 0.5% effective 2 November 2026. Many online banks have also decided to make similar increases, while Aozora Bank's BANK Branch began raising its rate to 1.2% annually from 1 October, applicable to deposits of up to ¥1 million.
Winter bonus term deposit rates are expected to exceed the 1.2% to 1.3% levels seen in the summer, and it has been suggested that some banks may offer 1.4% in their winter campaigns. Meanwhile, rates could be raised during the campaign period depending on the Bank of Japan's moves, and some observers say depositors should assess the high-rate environment when applications open from mid-November onward.