Are ordinary deposits at 0.3% still useful?

Yes, for payments and emergency cash. At 0.3%, the after-tax yield is about 0.239%. Use an ordinary account for three to six months of expenses. Move surplus to higher-yield options like retail JGBs if your timeline allows. Review rates and fees with your bank.

How does the “Floating 10” retail JGB at 1.23% work?

It is a 10-year government bond for individuals with a coupon that resets every six months, linked to short-term rates, and a coupon floor. It pays interest twice a year. Taxes are 20.315% withheld. You can redeem early via your bank, though small costs may apply.

What questions should I ask Aozora Bank before shifting money?

Ask about current ordinary and time-deposit rates, fees, and how bond subscriptions work. Request a simple after-tax comparison on your balance. Confirm early redemption rules, settlement timing, and any promotional conditions. Make sure autopay and salary transfers keep working if you move funds.

Will another Bank of Japan hike raise my rates further?

Usually yes, but timing and size vary. Banks adjust ordinary and time-deposit rates based on policy moves and funding needs. Retail JGB coupons also reset with market rates. Track official guidance and recent inflation data. Rate direction will guide both deposit offers and bond coupons.

Global Market Insights

December 29: Aozora Bank in Focus as Deposits at 0.3%, Retail JGB 1.23%

ByHuzaifa Zahoor December 29, 2025December 29, 2025

After the latest Bank of Japan hike, ordinary deposit rates near 0.3% and the new retail “Floating 10” JGB at 1.23% put Aozora Bank in focus. Savers in Japan are rethinking idle cash as safer yield returns. We compare after-tax math, liquidity, and options that matter for households and small businesses. Aozora Bank and peers face stiffer competition for deposits and sharper pricing on loans. Here is what today’s rates mean, how to allocate cash, and the signals to watch into early 2025.