AEON Bank campaign-- 3.0% (pre-tax) on 1 year fixed deposit. Good deal?

[commentator]

Firstly, I've been very lax/negligent regarding the best use of my every-growing/still somewhat small savings (almost 7 million yen, after buying a residence). My New Years resolution (again)-- get a plan together.

A problem-- I'm a US citizen (I hope my "flair" is correct). I'd love to drop everything into a Vanguard account (for example) and forget it, but I don't have a US bank account or mailing address. Also, umm, I've neglected to file taxes since moving overseas. Terrible, yes, but I've never earned enough to be liable for payment. Of course I knew long ago that I still needed to file a return (too drunk for too many years; finally sober now). I'll address that this year as well (any advice on that front welcome).

So then, since NISA is also problematic for me at the moment, is this a good short term idea?

https://www.aeonbank.co.jp/campaign/account/231117_01/?trcd=macs000015

Any/all advice very welcome. Thank you!

 

[darrellgc]

@commentator It’s a one month time deposit, max 2M. Based on their calculation the max you get back is 3,930 yen - after default tax taken off. It also requires physical visit to a branch.

While certainly better than having 2M lying around for a month, it’s up to you to decide whether opening another bank account and your time involved is worth 3,930 yen max. Often you can get more just by opening a credit card - but again, is it worth is.

If it was monthly renewing at the same rate, it might be more worth it.

“Example of interest calculation when depositing 2 million yen into this time deposit (assuming the deposit period is 30 days): 2 million yen x 3% x 30 days ÷ 365 days = 4,931 yen (pre-tax interest) 4,931 yen - tax 1,001 Yen = 3,930 yen (interest after tax) “

Edit: in fact their own CC is giving 11,000yen (after conditions such as using the card for spending 100,000yen etc) and you can get a Minion in your credit card.
https://www.aeon.co.jp/campaign/lp/select_bank/

 

[commentator]

@darrellgc Ah, yes. I was too excited at the prospect of (finally) better than nothing, but I should really just invest my time into paving the way for a better long-term option. Oh, and I got an Aeon card when joining my gym-- no campaign, no minion. Boo. Anyway thank you very much.

 

[mchuely]

@commentator Not really a good deal. I was getting 9% pre-tax for 6-month cash deposits with Sony Bank. That campaign ended though but they may have some other deal.

As an American, we can’t really do NISA. But I’d look into a back door Roth IRA if you can open up a Robinhood account with an address for one of your family members.

Then I’d open up an interactive brokers account in Japan and put 80-90% of it into VTI and maybe VXUS.

 

[commentator]

@mchuely Thank you Ballz. I've got some reading to do (how to get a Robinhood, then interactive brokers account, etc); this has all been terribly neglected. But I can use my brother's address (if there is no fraud risk). Anyway, much to learn but on the right track. Thanks again for the Sony-AEON comparison.

 

[dmcagulada]

@commentator How does a backdoor IRA account work? I thought you could only contribute money claimed in the States (in other words, if Japan is your tax home, you can't contribute.)