Mizuho Bank raises Rakuten Card point return rate to 2%, aiming to attract deposits
Quick Look
- Mizuho Bank announced that it will raise the point return rate for the Mizuho Rakuten Card, which is affiliated with the Rakuten Group, from the previous 1% to 2%.
- This is aimed at catching up on the lag in personal financial services, and aims to expand interest margins by increasing deposit balances.
- The return rate consists of 1% Rakuten points and 1% Mizuho points, which is the highest level in the industry for a card with no annual fee.
AI-generated summary
Why It Matters
With the Bank of Japan's interest rate hike, the ``world of interest rates'' has returned, and banks' interest margins are becoming more important. While increasing deposit balances is the key, Sumitomo Mitsui Banking Corporation's Olive service is doing well and deposit balances are increasing, while Mizuho Bank's personal deposit balance growth rate is 0.48%, lagging behind its competitors.
Mizuho Bank announced on the 7th that it will raise the point return rate for the Mizuho Rakuten Card, a credit card developed with Rakuten Group, from the previous 1% to 2%, the highest level in the industry. The aim is to catch up in personal financial services, which have lagged behind other megabanks.
With the Bank of Japan's interest rate hike, the ``world of interest rates'' has returned, and the traditional way of earning money based on interest margins (the difference between lending rates and deposit rates) is becoming increasingly important for banks. The key factor is the amount of deposits that serve as the source of the loan.
In this respect, Sumitomo Mitsui Banking Corporation, whose comprehensive financial service "Olive" is doing well, is leading the way. As of the end of March 2026, the balance of individual deposits was approximately 62 trillion yen, an increase of 2.42% from the previous year. As the account balance increases, there is also a system in which the return rate when paying by card at eligible stores increases, leading to accumulation of deposits.
Mitsubishi UFJ Bank's personal deposit balance increased slightly by 0.17% year on year, but the balance amounted to approximately 87 trillion yen, the highest among megabanks. Catch up with Sumitomo Mitsui Banking Corporation with comprehensive financial services "Mmut".
On the other hand, Mizuho's sales rose only 0.48% year on year, to approximately 48 trillion yen, and was looking for ways to boost its sales.
The new 2% return rate includes, in addition to the existing 1% Rakuten points, 1% Mizuho points that can be exchanged for other points. A card with no annual fee has a ``return rate that is at a level not found on other cards'' (finance industry). There is also no upper limit on the amount of points awarded. The idea is to increase deposits by creating a system in which credit card payments will not be refunded unless designated to a Mizuho Bank account.
However, due to the increase in the return rate...
What to Watch
AI outlook — possibilities, not facts
Mizuho Bank's personal deposit balance growth rate will improve to over 0.8% in the next few quarters
Possible · Within months
Open Questions
- How much will the cost increase due to the point return rate increase?
- How many users meet the conditions for withdrawal from Mizuho Bank accounts?
- How much impact does this measure actually have on personal deposit balances?
