Japan is a popular international destination for both expats and tourists. The most popular Japanese cities for foreigners are Tokyo, Osaka, and Nagoya. However, many foreigners live in smaller cities with a global commercial presence. Since 1991, the expat community has increased, and migration to Japan continues to increase.
If you plan to relocate to Japan, you will require a bank account. Here are a few pointers to assist you set up your Japanese finances.
What documents do I need to open a bank account in Japan?
To open a bank account in Japan, you will require:
- Your residence card (sometimes called the zairyu card).
- Your Passport
- A valid visa.
- Your Japanese address and telephone number
- A hanko seal is a stamp used in place of a signature and shows approval.
You’ll be offered the option of selecting a 4-digit personal identification number (PIN) and receiving a passbook to update your account balance at the ATM. Your passbook will contain your account name, the 3-digit sort code for your local bank, and your 7-digit account number.
You may be astonished if the bank asks if you are a member of a criminal organization. Because of Japanese legislation, this question is needed for all new bank accounts and should not concern you.
Can I open a bank account from abroad?
Unfortunately, due to the intricate nature of work visas, opening a Japanese bank account from abroad is not possible. Furthermore, because you must provide your residence card while creating an account, non-residents are not able to open one. Tourist visas are not accepted in lieu of residency cards. For further information on the rules and requirements, visit the Japanese Financial Services Agency’s website.
Online banking
Despite the fact that Japan is a highly technological country, banking in Japan is still done traditionally. Some banks enable you to submit an initial application online, but they eventually require you to come in person with the documentation required above. Furthermore, Japanese society is more reliant on currency than the average Western country.
Which bank should I choose?
Many expats swear by Shinsei Bank, Mizuho, and SMBC Trust Bank (formerly Citi’s Japanese retail operation). The first two banks demand some level of Japanese proficiency to open a bank account. SMBC Trust Bank is an excellent choice for customers who require English help over the phone and online.
Japan has an abundance of international ATMs and banking partners, including the following:
- Bank of America
- ING
- Barclays Bank PLC
- State Bank of India
For a complete list, see the KMPG Foreign Banks in Japan Survey 2016.
As an expat, you’re more likely to bank with one of the following retail operations:
Shinsei Bank
- Number of branches: 50+
- Number of ATMs: 65,000 (including partner ATMs)
- Offered products:
- PowerFlex account (bilingual services, telephone banking, online banking, no minimum balance required)
- Shinsei Bank’s cash card (approximately 96,000 ATMs available, free of charge withdrawals from Seven-Eleven, LAWSON, FamilyMart and more)
- Cash withdrawal with low fees from overseas ATMs
- Banking office hours until 7 PM in many locations (Japanese banks generally close much earlier – often at 3 PM)
Mizuho
- Number of branches: Approximately 505
- Number of ATMs: 2,700+
- Offered products:
- Global e-Banking (access latest account information)
- Bulletin board service and message service
- Cash cards for use in Japan only
- Savings accounts
- Internet banking
- Various credit cards
SMBC Trust Bank
- Number of branches: 444
- Number of ATMs: 100+
- Offered products:
- Prestia bank account (private banking, mobile banking)
- Prestia gold account (Foreign Currency Time Deposit, discount on foreign exchange commissions)
- Housing loans
The logistics of banking in Japan
Opening a bank account in Japan is pretty simple assuming you have all of the required documentation. After you open your account, you will receive your cash card in about 10 days, which you may use to make withdrawals at any of your bank’s branches.
Most of Japan’s biggest banks provide an internet banking system to make banking easier. Some SMBC and Shinsei Bank branches provide English-speaking staff, which is ideal for folks who are new to Japan and have not had time to improve their language skills.
Bank ATMs are also available in many convenience stores, metro stations, and train stations around major cities. Rural locations are more likely to have local banks and post offices. In any case, having extra cash on hand for emergencies is a good idea.
Banking fees
There are usually no fees for opening a bank account in Japan, and there is no minimum deposit. Interest rates are typically very low. However, you should expect to pay minimal ATM fees from banks outside your local network. Banks may charge you an out-of-hours fee for services provided after standard banking hours (9 a.m. to 5 p.m. weekdays). The biggest banks, such as Shinsei and Citi, stress free withdrawals from many partner ATMs throughout Japan.
Credit cards are not widely accepted in Japan, which is still primarily a cash-based country. Fortunately, it is often safe to carry substantial quantities of cash. Credit cards are accepted at most large hotels, restaurants, and businesses, however you may be charged a usage fee.
Even if both bank accounts are domestic, you should expect to pay a fee when transferring funds. The charge is determined on the amount of money sent and the bank to which it is sent. The ATM informs you of the charge, and you confirm your willingness to pay it. If you like, you can make an ongoing payment by having a transfer card printed. A transfer card will remember all of your information and will not require you to walk through all of the displays at the ATM.
International transfer fees
Fees for international money transfers vary depending on the overseas bank and the bank’s agreement with Japan. You should prepare to pay considerable fees. You will confront a wide range of taxes and conversion rates, making it difficult to plan ahead. Rumor has it that certain banks charge extra to transfer money faster, yet this is not their official policy. To transfer money, you must always provide evidence of identity and pay a minimum of 2,500 Yen every transfer.
Banks may also mark up the interbank exchange rate, which is the actual rate at which banks purchase and sell currency. If you are not vigilant, every overseas transfer may result in commission fees and unjust exchange rates.