“Is it true that the JGB for individuals system is changing?”
“Will we be able to buy 20-year maturity government bonds from now on?”
“Is there a possibility that interest rates will be better than the current JGBs for individuals?”
Many of you may have questions like these.
In fact, discussions are currently underway at the Ministry of Finance to review the product details of JGBs for individuals themselves.
At a study group held by the Ministry of Finance on November 5, 2026, several new mechanisms not previously available in JGBs for individuals were considered.
For example,
・20-year maturity government bonds
・Compound interest products where interest earns interest
・Lowering the minimum purchase amount
・Reviewing the interest rate setting method for 10-year floating rate bonds
・Shortening the one-year prohibition period for mid-term redemption after purchase
and so on.
If realized, these could be major changes that will also affect our asset management.
Therefore, in this article, I will briefly review the current mechanism of JGBs for individuals in a way that is easy to understand for those aged 60 and over, and then explain in detail what is about to change.
Please note that the information introduced here includes both system changes that have already been decided and those that are still in the consideration stage. Please read while paying attention to that difference.
1. What exactly are JGBs for individuals?
Simply put, JGBs for individuals are financial products where you lend money to the Japanese government and receive interest in return.
Currently, there are the following three types:
・10-year floating rate
・5-year fixed rate
・3-year fixed rate
The minimum purchase amount is 10,000 yen, and they can be purchased in 10,000 yen increments.
In addition, it is a mechanism where the government pays the principal and interest, and mid-term redemption is possible after one year has passed since issuance.
Although the mechanism is different from bank deposits, it is a product used by those who want to manage their money with an emphasis on safety.
2. First, the decided system revision! What is “JGB for Individuals Plus”?
First, I will explain the system changes that have already been announced.
Until now, Japanese Government Bonds for Individuals have been products that, in principle, only individuals could purchase.
However, starting with the December 2026 offering and the January 2027 issuance, some corporations and organizations will also be able to purchase them.
Along with this, the product name will also be changed.
The new name is
“Japanese Government Bonds for Individuals Plus”
.
Eligible entities include, for example, educational corporations, medical corporations, social welfare corporations, general incorporated associations, condominium management associations, and unlisted companies.
However, not all corporations are eligible. Corporations that fall under the category of specified investors under the Financial Instruments and Exchange Act are excluded.
So, what about when we, as individuals, purchase them?
In fact, there are no changes to the basic product details when purchased by individuals.
The product lineup of 10-year floating rate, 5-year fixed rate, and 3-year fixed rate remains basically the same.
In other words, it is easy to understand this “Japanese Government Bonds for Individuals Plus” as a system change to expand the range of eligible purchasers.
This is where the main topic of this discussion begins.
3. How will Japanese Government Bonds for Individuals change in the future? 5 notable revision proposals
At the “Study Group on National Debt Management” held at the Ministry of Finance on November 5, 2026, a direction for reviewing the product characteristics of Japanese Government Bonds for Individuals was presented.
While keeping the existing three types of products as the foundation, the addition of new products and the improvement of purchase conditions are being considered.
The following five points are particularly noteworthy.
1. Possibility of the introduction of 20-year maturity Japanese Government Bonds for Individuals
The current maturities for Japanese Government Bonds for Individuals are three types: 3 years, 5 years, and 10 years.
In this review, the addition of new products with longer maturities, such as 20-year bonds, is being considered.
So, what are the benefits of having a 20-year maturity product?
For example, for those who want to invest a portion of their lump-sum retirement money over a long period, it increases the available options.
It might be an interesting product for those who feel the current 5-year fixed-rate bonds are too short and want to invest for a longer period than the 10-year floating-rate bonds.
However, there is something to keep in mind here.
Investing money for a long period of 20 years means that prices, interest rates, and living environments could change significantly during that time.
For example, if prices rise significantly in 20 years, the real value of the money received may have decreased.
Also, you must consider whether you can manage without using those funds for such a long period of 20 years.
At this point, a 20-year maturity product has not been decided, but if it is realized, it will become a new option for those considering long-term investment.
(2) A ‘compound interest type’ where interest earns interest is being considered
In this review proposal, what I personally want to pay attention to is this compound interest type.
Current individual government bonds are basically structured to receive interest every six months.
On the other hand, the compound interest type is a mechanism where the interest received is incorporated into the principal for investment.
It might sound a little difficult, but I will explain it simply.
For example, suppose you invest 1 million yen at an annual interest rate of 2%.
In the case of simple interest, 20,000 yen of interest is generated every year.
On the other hand, in the case of compound interest, the interest generated in the first year is also incorporated into the principal for investment, so the interest increases from the second year onwards.
In other words, interest earns interest.
If you could invest 1 million yen at an annual interest rate of 2% for 10 years using compound interest without considering taxes or fees, it would become approximately 1,219,000 yen.
Under the same conditions, it would be 1.2 million yen with simple interest.
The longer you invest, the greater the potential effect of compound interest.
In particular, this may become an attractive mechanism for those who do not need to use the interest immediately and want to save money for the future.
However, the compound interest type currently under consideration has not yet been officially decided for implementation.
Furthermore, if a compound interest type is introduced, system design will also be required regarding the handling of interest when redeeming before maturity.
We should keep an eye on future announcements to see what kind of product it will be.
3. Possibility of the minimum purchase amount becoming lower than 10,000 yen
Currently, Japanese Government Bonds for Individuals can be purchased starting from a minimum of 10,000 yen.
In this review, lowering this minimum purchase amount is also being considered.
For example, if the minimum purchase amount were to become 1,000 yen, it would be possible to purchase them with smaller amounts than before.
Of course, it has not been decided that it will become 1,000 yen.
The specific amount has not yet been announced.
However, if the purchase amount is lowered, it will likely become easier to use even for those who do not have a large amount of funds.
In particular, for those who want to increase their savings little by little each month while living on a pension, this could expand their options.
Also, it seems there is an aim to make it easier for the younger generation to purchase them as well.
4. Possibility of shortening the one-year prohibition period for early redemption after purchase
There is a rule regarding current Japanese Government Bonds for Individuals that you must be aware of.
That is, in principle, you cannot redeem them early for one year after purchase.
For example, if you purchase 1 million yen worth of Japanese Government Bonds for Individuals, you basically cannot redeem that money midway for one year.
This could be problematic if you suddenly need money.
In this review, shortening this one-year prohibition period for early redemption is being considered.
If realized, it might become a more user-friendly product than it has been until now.
However, there are also points to be aware of.
The fact that it becomes easier to redeem mid-term also means, from the government’s perspective, that it may become harder to secure funds stably.
Therefore, it will be important how specific conditions are set, such as the period until redemption becomes possible and the amount deducted if redeemed mid-term.
In particular, for money that you do not know when you might need, such as living expenses or medical costs, try not to deposit everything into government bonds from the start.
5. Possibility of a review of the interest rate setting method for 10-year floating-rate bonds
With current Japanese government bonds for individuals, if you purchase a 10-year floating-rate bond, the interest rate is reviewed every six months.
That interest rate is calculated by multiplying the base rate by 0.66.
In this review, it is being considered to revise this multiplier of 0.66.
In other words, there is a possibility that the interest rate will be higher than it is now.
For example, suppose the base rate is 3%.
With the current calculation method,
3% × 0.66 = 1.98%
would be the result.
If the multiplier were changed to 0.8,
3% × 0.8 = 2.4%
would be the result.
In this way, even with the same base rate, if the multiplier changes, the interest you can receive changes.
However, it has not been decided that it will become 0.8.
Specific figures and the new calculation method will be decided through future deliberations.
For those who hold 10-year floating-rate bonds or are considering purchasing them in the future, this must be a very concerning change, right?
4. Actually, these products are also being considered!
In addition to the five introduced so far, various opinions have been raised regarding new products and mechanisms for Japanese government bonds for individuals.
Looking at the survey results of financial institutions and individuals published by the Ministry of Finance at the study group in May 2026, the following proposals are also being discussed.
① Inflation-indexed government bonds
This is a product with a mechanism where the principal increases in line with rising prices.
For example, it is a product aimed at making it easier to protect the real value of money even if prices rise.
For pensioners, rising prices are a major concern.
When food, electricity, and gasoline prices go up, life can become difficult even with the same pension amount.
Therefore, if government bonds that can respond to price increases appear, many people might be interested.
However, inflation-indexed products tend to have complex mechanisms, and it is not yet known in what form they will actually be introduced.
② 10-year maturity fixed-rate type
Currently, there are 3-year and 5-year fixed-rate types and a 10-year floating-rate type.
In addition to these, there are calls for a 10-year maturity fixed-rate type.
If there were a product where the interest rate set at the time of purchase does not change for 10 years, it would be easier to predict the interest received in the future.
Especially for those who want to lock in interest rates during periods of high rates, it would be one of the options.
③ Accumulation method that allows for automatic periodic purchases
Currently, government bonds for individuals are purchased through financial institutions and the like.
In the future, there are also expectations for a mechanism that automatically purchases government bonds by deducting a fixed amount from bank accounts every month.
For example, a mechanism where you purchase 10,000 yen every month.
If such a savings-style method spreads, it may become easier to increase assets systematically without the need to prepare a large sum of money all at once.
Furthermore, according to the Ministry of Finance’s explanation, there is room for financial institutions to implement savings-style purchases even under the current system if they choose to support it.
④ Tax incentives such as NISA
In principle, interest on individual government bonds is subject to a 20.315% tax.
Therefore, there are opinions suggesting that they should be given tax advantages, such as making them eligible for NISA.
If tax incentives are realized, it could affect the net amount of interest received.
However, it has not been decided at this time that individual government bonds will become eligible for NISA.
Also, these are not products that the Ministry of Finance has officially decided to introduce, and they include opinions and proposals put forward by financial institutions and experts.
It is necessary to keep an eye on how these will be handled during future system revisions.
5. Why is the Ministry of Finance trying to change individual government bonds now?
Here, there is one more thing to be curious about.
Why is the Ministry of Finance trying so hard to move forward with a review of individual government bonds?
One of the reasons is that they want to increase the number of people who purchase and hold government bonds.
The Japanese government issues government bonds to secure the money necessary for the national budget.
Until now, the Bank of Japan, banks, insurance companies, and pension funds have held a large amount of government bonds.
However, the policy going forward is to gradually reduce the purchase of government bonds by the Bank of Japan.
Therefore, it has become important to increase the number of new purchasers who will hold government bonds stably.
That is why individual assets are attracting attention.
Japanese households hold very large financial assets, including savings and deposits.
The Ministry of Finance is trying to enhance the appeal of these products so that individuals can also hold government bonds with their money.
In fact, sales of Japanese Government Bonds for individuals in 2026 are on an upward trend against the backdrop of rising interest rates.
According to Ministry of Finance data, the issuance amount in October 2026 reached approximately 1 trillion yen, an increase of about 2.3 times compared to the same month the previous year.
Furthermore, not only the floating 10-year bonds, which have been the mainstay until now, but also sales of fixed 5-year bonds are growing.
In other words, interest in Japanese Government Bonds for individuals is rising due to changes in the interest rate environment.
This system review can be said to be an effort to further advance this trend.
6. Points to Note When Purchasing Japanese Government Bonds for Individuals
Finally, let’s briefly confirm the points to note when purchasing.
First, current Japanese Government Bonds for individuals cannot, in principle, be redeemed early for one year after issuance.
Also, even if you redeem them after one year has passed, an amount equivalent to the interest for the two most recent periods will be deducted.
Furthermore, even for products where the government pays the principal and interest, if prices rise, the real value of the money may decrease.
Therefore, it is important to keep money for living expenses or sudden illness or nursing care separately as savings that can be used immediately.
7. What Will Happen to Future Japanese Government Bonds for Individuals? When Will New Products Appear?
This is the part I would like you to pay the most attention to in this article.
At the Ministry of Finance’s study group on November 5, 2026, the direction for reviewing the product characteristics of Japanese Government Bonds for individuals was specifically indicated.
However, the 20-year maturity, compound interest type, lowering of purchase amounts, shortening of the early redemption prohibition period, and review of the interest rate setting method for floating 10-year bonds introduced so far have not yet been officially decided.
So, when will new products actually appear?
At this point, a certain period of time is required for financial institutions to modify their systems and prepare their sales structures, so the specific introduction timing has not been decided.
Ministry of Finance documents also state that it is planned to be implemented while taking into account the preparation status of financial institutions.
In other words, the “Japanese Government Bonds for Individuals Plus” starting in December 2026 and the new products currently under consideration should be thought of as separate matters.
Here, let’s organize the points to watch for in the future.
First, whether the compound interest type will be realized.
This is a major concern for those who want to increase their assets over the long term.
If it becomes possible to reinvest interest into the principal rather than receiving and spending it, it could become a new option for those who want to save money for the future.
Next, whether a 20-year maturity product will be realized.
If the current maximum of 10 years is extended to 20 years, it will expand the options for those considering long-term investments.
However, a 20-year period is by no means short.
It is important to make decisions while considering your age, health status, and the money you will need in the future.
And, how the interest rate for the 10-year floating rate bond will change.
If the current interest rate setting method is reviewed, it may affect the interest you receive.
In particular, those who already hold 10-year floating rate bonds or are considering purchasing them should keep an eye on future announcements.
Also, if the lowering of the purchase amount or changes to early redemption conditions are realized, individual government bonds may become more accessible products than they are now.
Let’s continue to pay attention to what kind of conclusion the Ministry of Finance will reach.
8. Summary: Buy now? Or wait for new products?
This time, we explained the system revisions for individual government bonds and new products currently under consideration.
Let’s review the important points once more.
First, starting with the December 2026 offering, some corporations and organizations will also be able to purchase them, and the product name will be changed to “Individual Government Bonds Plus.”
This is a system change that has already been announced.
On the other hand, 20-year maturity products, compound interest types, lowering the minimum purchase amount, reviewing the interest rate setting method for 10-year floating rate bonds, and shortening the early redemption prohibition period are still in the consideration stage.
If these are realized in the future, the way individual government bonds are used and selected may change significantly.
So, what should those who already own individual government bonds do?
There is no need to rush to sell or hurry to increase your holdings just because of these system revisions.
Also, it does not mean that you must wait to make a purchase until the new products are released.
What is important is to consider when you will need the money, how long you can invest it, and what level of interest you expect.
For retirement funds, it is important not only to grow them but also to be able to use them when needed.
Regarding future system revisions for individual government bonds, let us make calm decisions while checking the official announcements from the Ministry of Finance.
At the “Money Classroom for Those Over 60,” we will continue to provide useful financial information for the senior generation as simply and clearly as possible.
*This article is based on materials published as of November 13, 2026. Systems and products under consideration may change in the future. Please check the latest information from the Ministry of Finance or your financial institution before making an actual purchase.