In November, the 3 megabanks raised their 10-year time deposit rates to 1.35%. As a result, Fukuoka Bank and Sony Bank became the leaders at 1.50%, while Yokohama Bank and Chiba Bank revised their rates to the same level on 4 November.
Based on trends as of September, ordinary and time deposit rates have generally been rising following the BOJ's monetary policy meeting. Time deposits with longer maturities have seen particularly large increases. Following the revision implemented on 2 November, rates are 0.625% for the shortest 1-month term and 1.35% for 10 years.
Following the revision, Fukuoka Bank and Sony Bank lead the 10-year time deposit rankings at 1.50%, while other banks remain around 1.35%. The top rates among the 3 banks' time deposits appear to have stabilized at this level, although other banks may follow.
As of 4 November, Yokohama Bank and Chiba Bank had revised their time deposit rates to match those of the megabanks, and similar moves could spread to other banks, including regional banks. Meanwhile, ordinary deposit rates are gradually converging at around 0.5%.
Against this backdrop, the latest rate tables for major banks show ordinary deposit rates of 0.5% and a ceiling of 1.35% for time deposits as the prevailing levels. The potential for further increases in long-term time deposit rates is expected to remain. Attention is focused on future BOJ meetings and reports on interest-rate trends.