Key Facts
• On July 2, Yamaguchi Financial Group (Yamaguchi FG) announced early termination of a 2% interest rate time deposit.
• The program, launched on June 13, was set to end on July 8, less than a month after its start.
• The deposit offered a 2% annual interest rate, the highest in Japan, for funds transferred from other institutions.
• Customers needed to transfer at least 5 million yen to qualify, with a six-month maturity period.
• The standard interest rate of 0.225% was increased by 1.775% to reach 2%.
• Yamaguchi FG’s 2024 lending interest rate was 1.31%, lower than the deposit rate.
• The program was available at Yamaguchi Bank, Kitakyushu Bank, and Momiji Bank.
• Yamaguchi FG did not disclose the total deposit amount but stated it neared their target quickly.
• In January, Saikyo Bank in Yamaguchi Prefecture ended a similar campaign early due to overwhelming demand.
• Saikyo Bank’s campaign offered up to 50,000 yen for new account openings, ending a month earlier than planned.
Summary
Yamaguchi Financial Group (Yamaguchi FG) announced the early termination of its 2% interest rate time deposit program due to unexpectedly high demand. Launched on June 13, the program was initially set to run until July 8 but will now end less than a month after its start. The deposit, available at Yamaguchi Bank, Kitakyushu Bank, and Momiji Bank, required a minimum transfer of 5 million yen from other financial institutions and offered a six-month maturity period. The 2% interest rate, the highest in Japan, significantly exceeded Yamaguchi FG’s 2024 lending interest rate of 1.31%. While the total deposit amount remains undisclosed, Yamaguchi FG confirmed it quickly approached their target. This follows a similar trend in Yamaguchi Prefecture, where Saikyo Bank ended a promotional campaign early in February due to overwhelming demand.
