Japan Hiked Rates, but Megabanks Compete on Card Points, Not Interest

Japan is hiking rates-so deposits should pay more. Instead, the opposite is happening, and it's very practical for Taiwanese who bank or spend in Japan. With the BOJ's policy rate up to 1%, the three megabanks are competing not on deposit rates but on credit-card points. Mizuho's pitch is a flat 2% back with no cap; SMBC and MUFG tout "up to 20%." The high number looks generous but usually comes with specific stores, conditions, and caps-while a flat, uncapped 2% pays on every purchase. For heavy spenders, a reliable 2% often beats a headline 20% you can't fully claim. Why points, not interest? Raising deposit rates rewards all savers at high cost and is hard to reverse; card points target profitable, data-rich customers and flex with costs. For readers: compare caps and conditions, not just the top percentage; don't assume banks will pass hikes to your ordinary savings-compare actual deposit rates; and frequent visitors should pick an uncapped, no-restriction rewards card. Watch whether rivals match "uncapped," and whether ordinary deposit rates finally track the policy rate. Seen in a Taiwan context it resonates: banks there also trade deposit rates against card rewards, and consumers chase big 'up to X%' numbers while missing the thresholds behind them-when a bank sells 'uncapped, no conditions,' it is drawing a line against rivals whose pretty numbers hide limits.