Japan's three megabanks said they will increase ordinary deposit interest rates from 0.3% to 0.4% starting Aug. 3, 2026 [1].
This shift marks a significant departure from decades of ultra-low interest rates in Japan. The move impacts millions of savers and homeowners as the financial sector adjusts to a new monetary environment established by the Bank of Japan.
Mitsubishi UFJ Financial Group, Sumitomo Mitsui Banking Corporation, and Mizuho Financial Group said the changes are in response to recent interest-rate hikes by the Bank of Japan [1]. The new deposit rate of 0.4% represents the highest level since 1992 for MUFG and SMBC, and the highest since 2002 for Mizuho [1].
Beyond savings accounts, the banks are adjusting borrowing costs. Mitsubishi UFJ and Mizuho said they will raise the short-term prime rate used for variable-rate mortgages from 2.125% to 2.375% [1]. Sumitomo Mitsui Banking Corporation said it is also considering a similar increase to its prime rate [1].
These adjustments follow a period of prolonged monetary easing. While some reports indicated banks were maintaining existing rates following a Bank of Japan decision on April 28 to keep the policy rate at 0.75%, the megabanks have now moved to synchronize their offerings with the broader upward trend in national rates [1].
The implementation date of Aug. 3, 2026, provides a window for customers to adjust their financial planning before the higher costs for variable loans and higher returns on deposits take effect [1].
“Japan's three megabanks said they will increase ordinary deposit interest rates from 0.3% to 0.4%.”
The decision by Japan's largest lenders to raise both deposit and mortgage rates signals a structural shift in the Japanese economy. By moving away from the near-zero interest rate regime that defined the last two decades, the banks are passing the Bank of Japan's policy tightening directly to consumers. This creates a dual effect: increasing the income of savers while simultaneously raising the cost of debt for homeowners with variable-rate loans.
