Fixed three-year, fixed five-year, and floating ten-year bonds — minimums, interest, early redemption, and how they compare to deposits and bond funds.
Retail JGBs come in fixed 3-year, fixed 5-year, and floating 10-year forms with a ¥10,000 minimum, monthly issuance, government-backed principal, and a minimum-rate floor; they can be redeemed after one year with a deduction of the preceding two interest payments.
Retail JGBs (個人向け国債) come in three forms. The fixed 3-year and fixed 5-year bonds lock a rate for the term, giving predictable interest. The floating 10-year bond resets its rate periodically in line with market rates, so its interest can rise or fall over time. All three are issued monthly, so you do not have to wait for a special window to buy.
Official Ministry of Finance material sets a ¥10,000 minimum and a minimum-rate (floor) provision, so the interest rate cannot fall below a stated minimum even when market rates are very low. Interest is taxable in the normal way.
A key feature is that principal is protected by the government: at maturity you receive your ¥10,000-unit principal back in full. Early redemption is permitted after holding for one year, but with a penalty — the previous two interest payments are deducted from the amount you receive. So JGBs are liquid after year one, at a modest cost.
This combination — government-backed principal, a small minimum, monthly issuance, and a rate floor — makes retail JGBs a conservative instrument. But their expected return is low, and like all fixed-yen assets they carry inflation risk: if prices rise faster than the interest, your real purchasing power can still decline.
Compared with a time deposit, a JGB offers government backing beyond deposit insurance’s ¥10m per-bank limit and monthly availability, but a time deposit may offer a comparable or higher rate and simpler mechanics. Compared with a bond fund, a JGB has no market-price volatility if held to maturity and no fund fee, whereas a bond fund fluctuates in price, may hold longer-duration or foreign bonds, and adds currency and manager considerations.
JGBs are excluded from NISA, which is for equities, funds, and eligible listed securities rather than ordinary government bonds. Think of retail JGBs as a stability tool for money you want government-safe and reasonably liquid, not as a growth engine.
Brokerage (NISA/iDeCo) · Rakuten Securities
A leading low-cost brokerage for NISA and index-fund investing, integrated with Rakuten points and Rakuten Bank.
Fees: Many domestic funds and trades are low- or no-commission — verify current fee schedule.
Brokerage (NISA/iDeCo) · SBI Securities
Japan’s largest online brokerage by accounts, with a very broad low-cost fund lineup and full NISA/iDeCo support.
Fees: Many trades and funds are low- or no-commission — verify current fee schedule.
Brokerage (NISA/iDeCo) · Monex
An established online brokerage often chosen for US-stock access and research tools, with NISA and iDeCo support.
Fees: Commissions vary by product; some funds/trades are low-cost — verify current schedule.
This is education, not a recommendation. Most beginners research low-cost, broadly diversified index funds — for example all-country (全世界株式) or S&P 500 trackers — rather than picking individual stocks, because low fees and diversification are within your control while returns are not. Understand that values fall as well as rise, match the risk to your time horizon, and never invest money you may need soon.