Orix Trust & Banking Corp. and major credit card issuer Credit Saison Co. announced Tuesday that beginning in July they will offer Credit Saison card holders up to 1 percent interest per annum on ordinary deposits with the bank.
Most commercial banks currently offer 0.05 percent.
Tokyo-based Orix Trust, a wholly owned subsidiary of major leasing concern Orix Corp., is hoping to sign up 800,000 accounts with a total of 1.5 trillion yen in deposits in three years.
The monthly interest rate on deposits at Orix Trust will be based on the value of purchases made using the Credit Saison card the previous month.
The rate will start at 0.2 percent for credit card bills worth less than 3,000 yen, growing to 1 percent if purchases total 100,000 yen or more.
Orix Trust offers relatively high rates on time deposits because it does not have any branches and can therefore save on overhead costs.
Deposits with Orix Trust can be withdrawn from around 1,000 cash dispensers installed nationwide by Credit Saison. The bank plans to expand its online cash dispenser network by linking up with post offices and other banks.