💰 Japan Fixed Deposit Simulator

A fixed deposit simulator is a free tool that allows you to calculate the maturity proceeds of a fixed deposit in advance. Simply enter the principal amount, annual interest rate, and deposit term to instantly calculate interest income and final after-tax proceeds. Fully compatible with Japan's 2025 tax system (20.315% tax rate on interest), it supports both simple and compound interest calculation methods. This versatile calculator can be used for fixed deposits from any financial institution, including megabanks, online banks, and regional banks. It is an extremely convenient tool when planning deposits or comparing fixed deposit products from multiple financial institutions.

Fixed deposit interest rates in Japan in 2025 vary significantly depending on the type of financial institution. Megabanks (MUFG Bank, Sumitomo Mitsui Banking Corporation, Mizuho Bank) continue to offer very low fixed deposit rates of 0.002% to 0.01%. On the other hand, online banks (Rakuten Bank, SBI Sumishin Net Bank, au Jibun Bank, etc.) offer rates of 0.10% to 0.30%, more than 10 times higher than megabanks. Regional banks are in the middle at 0.01% to 0.10%. Limited-time campaign rates can reach 0.20% to 0.50%. Due to potential changes in the Bank of Japan's monetary policy, future interest rate trends may change, so it is important to regularly check the latest rate information.

There are two methods for calculating fixed deposit interest: simple and compound interest. Simple interest applies only to the principal, with calculations being straightforward and easy to understand. For example, depositing 1 million yen at an annual rate of 0.2% for one year yields 2,000 yen in interest (before tax). Compound interest, on the other hand, applies to both the principal and accrued interest. Japanese fixed deposits typically use annual compounding. With compound interest, the longer the deposit period, the greater the difference from simple interest, allowing you to earn more interest. However, in Japan's current low-interest environment, the difference between simple and compound interest is minimal for short-term deposits. For long-term deposits, it is recommended to choose products that maximize the compound interest effect.

In Japan, interest earned on fixed deposits is subject to a 20.315% tax. This rate consists of 15% income tax, 0.315% special reconstruction income tax (2.1% of income tax), and 5% resident tax. The special reconstruction income tax is scheduled to be levied until December 31, 2037. Taxes are withheld at source, with financial institutions automatically deducting and paying them, so individuals do not need to file tax returns. For example, if interest before tax is 10,000 yen, the actual after-tax interest received is 7,968 yen (10,000 yen - 2,032 yen in taxes). While taxes may seem small, for long-term deposits or large principal amounts, the tax impact can be significant. This simulator accurately calculates actual after-tax proceeds, enabling more realistic asset planning.

In Japan, the deposit insurance system protects depositors' assets even if a financial institution fails. Under this system, up to 10 million yen in principal per depositor per financial institution, plus its interest, is protected. Common deposit products such as fixed deposits, regular deposits, and savings deposits are covered. However, foreign currency deposits, financial bonds, and investment trusts are not covered, so caution is needed. If depositing more than 10 million yen, it is recommended to distribute funds across multiple financial institutions for risk diversification. For example, with 30 million yen in assets, distributing 10 million yen each to three different financial institutions ensures all funds are covered by deposit insurance. Additionally, even within the same institution, separating deposits into your name and family members' names provides protection for up to 10 million yen each.

There is a significant difference in fixed deposit rates between megabanks and online banks. Megabanks offer the advantage of having numerous branches nationwide with face-to-face support. They are suitable when seeking comprehensive financial services such as inheritance or asset management consultation. However, fixed deposit rates are very low at 0.002% to 0.01%. Online banks, lacking physical branches, pass cost savings on to customers through higher rates of 0.10% to 0.30%. The convenience of 24/7 transactions via smartphone or computer is also attractive. However, face-to-face support is generally unavailable, requiring comfort with internet operations. If prioritizing interest rates, online bank fixed deposits are advantageous. For comprehensive financial services and face-to-face support, megabanks remain viable options.