Dai-Ichi Kangyo Bank, Sumitomo Bank and Sanwa Bank on Monday raised their interest rates on time deposits following Friday's decision by the Bank of Japan to scrap its "zero-interest-rate" policy.
Sanwa Bank and the Bank of Tokyo-Mitsubishi already announced Friday that they will raise their ordinary deposit rates from the current 0.05 percent to 0.1 percent beginning today.
Fuji Bank said it will also raise its rates on ordinary deposits from the current 0.05 percent to 0.1 percent starting today.
Sakura Bank, Asahi Bank and other commercial banks are also considering raising their interest rates on ordinary deposits and other deposit accounts, officials at the banks said.
Sanwa Bank raised by 0.05 percentage point to 0.2 percent its rate on "Super" three-year time deposits. DKB also raised its rates on "Super" time deposits by 0.03 to 0.05 percentage point.
The BOJ decided Friday to raise the targeted unsecured overnight call rate on the short-term money market to 0.25 percent, ending the policy it adopted in February 1999 of keeping the rate near zero.