RetireJapan

Is there anything in Japan that pays a decent interest rate on savings? I keep hearing about CDs in the US paying 5%. Does Japan have something similar? (I am not looking for investment accounts, just savings). TIA

Here is a ranking for April: https://diamond.jp/zai/articles/-/274915

Best is SBI Shinsei, at 0.3%

Inflation and interest rates are lower in Japan, so the interest paid on bank accounts is also lower.

Gloria wrote: ↑Fri Apr 28, 2023 12:37 am Is there anything in Japan that pays a decent interest rate on savings? I keep hearing about CDs in the US paying 5%. Does Japan have something similar? (I am not looking for investment accounts, just savings). TIA

In yen, no. If you have dollars, there are options in Japan to get a reasonable interest rate.

Deep Blue wrote: ↑Sun May 14, 2023 3:27 am

Gloria wrote: ↑Fri Apr 28, 2023 12:37 am Is there anything in Japan that pays a decent interest rate on savings? I keep hearing about CDs in the US paying 5%. Does Japan have something similar? (I am not looking for investment accounts, just savings). TIA

In yen, no. If you have dollars, there are options in Japan to get a reasonable interest rate.

But with the corresponding Foreign Exchange Risk if the Yen strengthens against the foreign currency.
The higher interest may not compensate for the potential loss in Yen value of the foreign currency held if the Yen strengthens against the foreign currency held.

Prestia currently has these Interest Rates:
Foreign Currency Savings Deposit Interest Rates
https://www.smbctb.co.jp/en/about_inter ... hange.html
Foreign Currency Time Deposit Interest Rates
https://www.smbctb.co.jp/en/about_inter ... posit.html

Well, I did say if she has dollars. She wouldn’t bear any additional forex risks by putting them an a USD based interest bearing account!

Deep Blue wrote: ↑Mon May 15, 2023 10:37 pm Well, I did say if she has dollars. She wouldn’t bear any additional forex risks by putting them an a USD based interest bearing account!

???

If she has dollars and puts them in a time deposit at 5%

She'll get $5 on $100 or Y680 on Y13,604 at the current exchange rate = Y14,284

but if the Yen goes from Y136.04 to Y110, then that $105 will only be valued at Y11,000, so with the Interest Y11,550...
Lose Y2,054 on the original investment at today's exchange rate, or about -8.5%...

That's the Forex Risk.

She doesn't have Forex Risk only if she doesn't want the money in Yen in the future. If her base currency is USD...

Tkydon wrote: ↑Tue May 16, 2023 3:47 am

Deep Blue wrote: ↑Mon May 15, 2023 10:37 pm Well, I did say if she has dollars. She wouldn’t bear any additional forex risks by putting them an a USD based interest bearing account!

???

She doesn't have Forex Risk only if she doesn't want the money in Yen in the future. If her base currency is USD...

That's what he was saying... IF she had dollars already there would be no FX risk.

No one is disagreeing with you.