Japan Post Bank on November 9, 2026 raised interest rates across the board on its time deposits and fixed-term deposits. For time deposits, the rate applied to funds held for three years or more rose from 0.71% to 0.83% annually. In addition, starting November 17, a counter-only campaign featuring Shohei Ohtani, who has become a brand ambassador for the bank, will add a bonus that lifts the three-year rate to as much as 1.00% for qualifying deposits. For individuals hunting for places to park money amid low rates, the focus is on how to weigh the flexibility of being able to withdraw funds after six months against the interest-rate gap with fixed-term deposits.
Rates Raised Across All Periods, With Gradual Increases Below Three Years
The revision did not touch only the three-year-and-over rate. Time deposit rates were raised across the board for shorter brackets as well: six months to under one year rose from 0.425% to 0.55%, and one year to under 18 months rose from 0.45% to 0.60%. The rate applied when funds are withdrawn at 18 months is 0.625% annually.
Time deposit rates are set at the time of deposit and maintained at that level for up to 10 years. Up to the three-year mark, rates are set in six-month increments, and the rate corresponding to the elapsed period up to the withdrawal date is applied retroactively to the deposit date. Note that even if market rates rise after deposit, the rate on an existing time deposit does not automatically increase.
Interest is calculated on a semi-annual compounding basis. Interest generated every six months is added to the principal, and the next six months’ interest is calculated on that combined total. However, fixed-term deposits held for three years or more also use semi-annual compounding, so the benefit of compounding is not unique to time deposits.
Fixed-term deposits were also revised on the same November 9 date. The one-year rate rose from 0.50% to 0.70%, the three-year rate from 0.80% to 0.90%, and the five-year rate from 1.00% to 1.10%.
| Product / Period | Before Revision | After Revision (Nov 9) | With Campaign |
|---|---|---|---|
| Time Deposit, 6 months to under 1 year | 0.425% | 0.55% | — |
| Time Deposit, 1 year to under 18 months | 0.45% | 0.60% | — |
| Time Deposit, 3 years or more | 0.71% | 0.83% | 1.00% |
| Fixed-Term Deposit, 1 year | 0.50% | 0.70% | — |
| Fixed-Term Deposit, 3 years | 0.80% | 0.90% | — |
| Fixed-Term Deposit, 5 years | 1.00% | 1.10% | — |
Note: All rates are annual, pre-tax. The time deposit campaign applies only to lump-sum deposits of ¥10,000 (approximately $63) or more made at a counter and held for three years or more.
Counter-Only Bonus Voids If Withdrawn Before Three Years
The campaign runs from November 17 to April 30, 2027. It requires a lump-sum time deposit of ¥10,000 (approximately $63) or more made at a post office or Japan Post Bank counter, and adds 0.17% to the standard rate. Holding for three years or more brings the rate to 1.00% (0.796% after tax), rising above the level of a three-year fixed-term deposit.
However, the bonus applies only to funds held for three years or more. If funds are withdrawn before three years, the standard time deposit rate applies and the bonus is lost. Deposits made via ATM, Japan Post Bank Direct, or the passbook app are not eligible, so customers must visit a counter in person. Transfers from time deposits before maturity or from fixed-term deposits before their first maturity are also excluded, and the campaign is intended for newly deposited funds such as bonus payments.
Non-rate benefits include a passbook case featuring an Ohtani design and cash prizes awarded by lottery. The lottery is based on savings balances as of November 16, 2026, and is open to users who maintain or increase their balance as of April 30, 2027; no application is required. Prize money is scheduled to be deposited into the customer’s general account around the end of June 2027.
Fixed-Term Wins If Held to Maturity; Time Deposits Win on Early Withdrawal
Calculating interest on a ¥1 million (approximately $6,300) deposit made on or after November 9 based on Japan Post Bank’s product documentation shows that which product wins depends on how certain the use of the funds is.
| Deposit Method | Withdrawal at 1 Year | Withdrawal at 3 Years (Maturity) |
|---|---|---|
| Time Deposit (standard rate) | Approximately ¥6,009 (approximately $38) | Approximately ¥25,159 (approximately $160) |
| Fixed-Term Deposit | ¥7,000 (approximately $44) | Approximately ¥27,305 (approximately $170) |
| Time Deposit (with campaign) | — | Approximately ¥30,377 (approximately $190) |
Note: Pre-tax estimates. The one-year fixed-term deposit figure assumes holding to maturity. Canceling a three-year fixed-term deposit after one year applies a 0.50% annual rate, limiting interest to ¥5,000 (approximately $31).
Assuming the funds are left untouched until maturity, a fixed-term deposit for the same period beats a time deposit. Holding a three-year fixed-term deposit to maturity yields about ¥27,305 (approximately $170), exceeding the time deposit’s approximately ¥25,159 (approximately $160). On the other hand, canceling a fixed-term deposit before maturity applies the within-term withdrawal rate; for example, canceling a three-year product after one year applies 60% of the one-year rate (0.42% annually), which falls below the 0.50% ordinary savings rate, so the calculation uses 0.50% and interest shrinks to ¥5,000 (approximately $31). That is less than the approximately ¥6,009 (approximately $38) from withdrawing a time deposit after the same one year.
Applying the campaign and holding for three years yields approximately ¥30,377 (approximately $190), exceeding the maturity interest on a three-year fixed-term deposit. However, withdrawing before three years forfeits the bonus, so for funds that might be used partway through, the decision should factor in the rate applied on cancellation before the three-year mark.
Time deposits also carry their own constraints. The first six months is a lock-up period, and withdrawing during this time applies a special within-lock-up withdrawal rate different from the standard one. Withdrawals can be made in units of individual deposits, but a single deposit cannot be split and partially withdrawn.
Deposit limits also require attention. Under law, Japan Post Bank time deposits and other term savings such as fixed-term deposits are capped at ¥13 million (approximately $81,000) per person, and campaign deposits must fit within this limit combined with other term savings. Savings are covered by deposit insurance, protecting principal up to ¥10 million (approximately $63,000) plus interest. When depositing a lump sum that includes bonus payments, confirming the total amount is essential.
Deposit rates at financial institutions are easily swayed by the direction of the Bank of Japan’s monetary policy, and this round of increases is believed to reflect market rate trends. The choice between fixed-term deposits and time deposits appears to come down to a single question: whether the use of the funds has been decided.