Japanese banks are, in a historic shift, competing to shore up their deposit base as lending opportunities grow and consumers, seeking to beat inflation, shift their savings into a booming stock market. While banks had been able to count on ample deposits for decades, growing prospects domestically are pushing them to get creative or risk having to put a brake on lending. Interest on deposits is rising as the Bank of Japan gradually raises rates, but consumers are also seeing inflation eating into their savings after decades of deflation. The government has been encouraging savers to make household cash more productive, including through the "NISA" tax-free stock investment programme, which was expanded in 2024. "Investing through NISA is seen as safe, it's considered a part of savings," said Yohei Fujiwara, 30, who works for an airline and has invested in infrastructure and electric-related companies in Japan. The amount invested through NISA accounts more than doubled over the two years to the end of 2025 to reach 71 trillion yen ($445 billion). Japan's benchmark index has hit record highs, supported by an AI-driven investment boom and governance reforms that have helped the market shed its reputation as a value trap where companies care little about shareholder returns. "I'm interested in some more adventurous stocks like AI-related companies, but would only invest in a few years' time once I get a promotion and have more money to spare," Fujiwara said. Junya Oki, a 28-year-old hairdresser, said he started investing about a year ago to save for retirement and has put money into the S&P 500 and global index funds. "Since I got a raise I have money to spare so I want to put it to use," he said, near Shimbashi station in central Tokyo.