個人向け国債の購入方法や仕組みについて解説されています。個人向け国債は金融機関や証券会社で購入可能であり、オンラインでも申し込みができます。金利は変動金利と固定金利の2種類が存在し、利息は半年ごとに支払われます。国債は個人でも購入がしやすく、リターンも期待できますが、現在の低金利状況で収益性は高くない可能性があります。また、取引はペーパーレスシステムが主流となっています。資産管理や投資に関するアドバイスも重要であり、専門家のサポートが必要です。
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Table of Contents
Where can individuals buy national bonds?
Mechanism of individual bond issuance
Process of purchase
Generalization
Where can individuals buy national bonds?
If you want to buy individual national bonds, where should you buy them? Individual national bonds can be purchased at many financial institutions. Specifically, you can buy them at the following places.
Financial institutions and securities companies
National bonds can be purchased at financial institutions such as city banks, regional banks, credit unions, cooperative banks, and securities companies. Financial institutions and securities companies act as intermediaries in the sale of national bonds and support the purchasing process.
Online purchase application
While national bonds can be purchased over the counter, it is also possible to apply for purchase online. Although the number of financial institutions offering online purchase is fewer compared to physical locations, it eliminates the need to visit a financial institution in person. Please consider the fees and activities available when selecting a financial institution as they may vary.
Post office counter
National bonds can be purchased at post office savings counters and Japan Post Bank. However, please note that cash purchases are not accepted at post office savings counters or Japan Post Bank, and the purchase is done through withdrawal from a regular savings account.
Mechanism of individual bond issuance
Individual national bonds can be purchased in small amounts, making it easier for individuals to buy, and a minimum guaranteed interest rate is set. Let’s see how it works.
Product categories
As shown in Figure 1 below, individual national bond products include 10-year floating-rate bonds, 5-year bonds, and 3-year fixed-rate bonds.
[Figure 1] Comparison of individual national bond product features
There are two types of interest rates: “floating interest rate,” where the interest rate is revised every six months, and “fixed interest rate,” where the interest rate remains the same throughout the entire period.
Purchase conditions
All products can be purchased for a minimum price of 10,000 yen, and purchases can be made in 10,000 yen increments. They are issued monthly (12 times a year) and can be purchased within the specified purchase period.
Interest and benefits
Interest rates vary depending on the product and issuance period.
[Figure 2] Example of interest rates by issuance period and product
Interest is paid every six months (twice a year). For example, the interest rate for a “5-year fixed interest rate from April 4, 2020 to April 30, 2020” is 0.36%. Interest is received twice a year, a total of 10 times within 5 years. If you purchased 1 million yen, the interest received per payment is calculated as follows:
1 million yen × 0.36% ÷ 2 (twice a year) = 1,800 yen
Over 5 years, this amounts to:
1,800 yen × 10 payments = 18,000 yen
Upon reaching the maturity date without any issues, the initial investment of 1 million yen will be returned without loss, making the interest received a profit.
However, when paying interest, a tax of 20.315% is withheld from the profit as interest income. In the current situation of low interest rates due to financial easing policies, significant returns cannot be expected, and the profitability is not high.
Early cash conversion
The certificate can be exchanged for cash one year after the issuance date. If you decide to convert it to cash early, a deduction will be made from the “adjustment amount for early conversion,” which is equal to the first two interest rates times 0.79685. Therefore, it is recommended to plan your purchase in a way that you do not immediately cash it out one year later.
Transfer Settlement System (Paperless)
The transfer settlement system is a paperless system that does not issue paper invoices but manages transactions using accounts. For national bonds issued after January 2003, national bond certificates (securities) will no longer be issued.
Process of purchase
It is not difficult for individuals to purchase national bonds, but certain procedures such as opening a special account are required. Let’s take a look at the process until purchase.
1. Decide where to purchase
Research financial institutions that handle purchases near you or financial institutions where you can purchase online and decide where to buy. If you are purchasing national bonds for the first time, you will need to open a dedicated national bond account at the securities firm, bank, or other financial institution where you plan to make the purchase.
2. Open an account
Individual national bonds are managed in a national bond account opened at financial institutions such as securities firms and banks. However, some financial institutions may charge account opening and maintenance fees. Additionally, it may take several days for the account to be opened at some financial institutions, so please check with the financial institution for details.
To apply for the service, documents that can confirm your identity such as a driver’s license, My Number card, health insurance card, personal number (My Number), and seal will be required.
3. Submit a purchase application
After opening an account, proceed with the purchase of national bonds. National bonds can be applied for purchase within a certain period (issuance period) before the issue date, but the types of national bonds and issuance periods may vary depending on the financial institution.
When purchasing national bonds, you will need the purchase amount, passbook, seal, and other necessary items. For more details, please contact the financial institution where you wish to open an account.
Generalization
We have researched individual bonds, but how do you feel about them? Under the financial easing policies such as zero interest rates and negative interest rates, national bonds are not attracting much attention, but there are constantly rumors that the Bank of Japan may raise interest rates. In the event that Japan enters a period of significant interest rate hikes, there may be concerns about individual national bonds.
Advice on asset management and investment is now commonly provided at the counters of banks and other financial institutions. At the same time, various individuals are sharing their investment skills on the internet through platforms like YouTube and social media. However, is this advice really right for you?
In a world with a variety of financial products, having someone to support and protect you is essential.
Contributor: Miki Fujiwara
Founder and Certified Financial Planner Class 1 of SMILELIFE Project Co., Ltd. SMILELIFE Project Co., Ltd. was established in September 2017. It started a comprehensive life planning service “LIFEBOOK®” for individuals in anticipation of the arrival of the 100-year life society. Establishing an independent franchise advisor system specializing in advisory fees without selling financial or insurance products, utilizing cutting-edge financial planner expertise and an advisor training program based on the U.S. model, called “Life Way.”
Contact: 03-6403-5390 (SMILELIFE Project Co., Ltd.)
SMILELIFE Project Co., Ltd.
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