By Kazuma Nagahara / Yomiuri Shimbun Staff Writer

SBI Shinsei Bank Ltd. has decided to increase interest rates on term deposits in the near future, with the ratio of the six-month term deposit rising by 0.17 percentage points to 1% per annum, according to sources.

With the rise, the bank's interest rate on six-month term deposits will reach the category's highest level in Japan.

The interest-rate hike will cover customers who open new accounts as well as existing depositors. SBI Shinsei Bank aims to increase deposits by raising interest rates ahead of other financial institutions, as the bank anticipates a future interest rate hike by the Bank of Japan.

This will be the first time the interest rate of six-month term deposits has reached 1% since the bank's predecessor--Shinsei Bank Ltd.--launched in 2000. SBI Shinsei Bank will raise the interest rate on one-year deposits by 0.25 percentage points to 0.85% a year, and on five-year deposits by 0.35 percentage points to 1.1% a year. The service will be utilized for deposit holders who apply for a fixed-term deposit of 300,000 yen or more via the internet.

The six-month interest rate currently stands at around 0.25% a year at the three Japanese megabanks and between 0.2% and 0.7% at online-only banks. SBI Shinsei Bank aims to attract and retain depositors by offering higher interest rates than competitors.

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This article is from The Yomiuri Shimbun. Neither Dow Jones Newswires, MarketWatch, Barron's nor The Wall Street Journal were involved in the creation of this content.

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June 09, 2025 07:39 ET (11:39 GMT)

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