A 41-year-old man living in Saitama Prefecture has deposited ¥60 million in a one-year time deposit with オリックス銀行 and says he plans to increase his time deposits in light of the recent rise in interest rates.
This case study of zoc, a 41-year-old man living in Saitama Prefecture, is drawn from All About’s “Survey on Cash and Deposits.” It examines the use of time deposits among Japanese investment funds and the asset-management thinking behind it.
zoc has ¥62 million in cash and deposits and ¥100 million in risk assets. He has allocated part of his cash and deposits to time deposits, including ¥60 million in a one-year deposit with オリックス銀行. The interest rate is 1.05%, agreed after the lifting of negative interest rates. He says he plans to increase his time deposits, placing greater emphasis on interest rates in recent months.
His risk assets comprise ¥80 million in the S&P 500 and ¥20 million in a gold ETF. He allocates surplus funds after living expenses between investments and time deposits, balancing returns and risk. Although seeing the Nikkei makes him want to consider further investment, he says he has judged current conditions to be “a bubble” and will not act on that impulse.