Opening a Bank Account in Japan

Banking and Finances in Japan

Managing your money in Japan can seem complicated when you first arrive, particularly if you are unfamiliar with the banking system or Japanese financial terminology. Opening a bank account, withdrawing cash, applying for a credit card and sending money overseas all involve procedures that may be different from those in your home country.

The good news is that once you understand the basics, everyday banking becomes much easier. This guide explains the main things foreign residents should know about banking and personal finances in Japan, from opening your first account to using ATMs, exchanging currency and transferring money abroad.

Opening a Bank Account in Japan

Before visiting a Japanese bank to open an account, make sure you have the identification and other documents you may be asked to provide. A passport and residence card are particularly important for foreign residents. Some banks may also ask for a personal seal, known as an inkan or hanko.

Although some banks accept a signature instead of an inkan, requirements can vary between financial institutions. If you already have a personal seal, taking it with you can avoid unnecessary problems. Your chosen seal effectively becomes your personal seal for banking purposes unless you later change it.

Traditional bank branches in Japan generally operate during weekday daytime hours, so people who work full time may need to arrange time away from work. The exact opening process and waiting time vary between banks and branches, so it is worth allowing plenty of time for your first visit.

The Bank Account Opening Process

Opening an account is generally a straightforward process, although the amount of Japanese required can depend on the bank and branch. The following steps provide a general idea of what to expect.

Step 1: Ask to Open an Account

When you reach the counter, you can say 銀行口座を開きたいのですが (Ginkou kouza wo hirakitai no desu ga), which means “I would like to open a bank account.”

Step 2: Complete the Application Forms

The bank will ask you to provide information such as your name, address and employment details. If the paperwork is entirely in Japanese and you are not confident reading it, having someone who can help you understand the forms can be useful.

Step 3: Make an Initial Deposit

You may be asked to make a small initial deposit when opening the account. The amount required can vary, but it is generally a relatively small sum.

Step 4: Choose Your PIN and Receive Your Bank Book

You will normally set a four-digit PIN for your cash or ATM card. Depending on the bank and account, you may also receive a 通帳 (tsuucho), or bank book, which records transactions made through the account.

Step 5: Receive Your ATM Card

If your ATM or cash card is not issued immediately, it may be sent to your registered address. The card will normally contain information such as your name, branch details and account number.

What If You Don't Have a Permanent Address?

Proof of address can be an important part of opening a Japanese bank account. For people who have recently arrived in Japan, this can create a practical problem if they are still living in temporary accommodation.

Depending on the bank and your circumstances, temporary accommodation or your current registered address may be accepted. Requirements differ between financial institutions, so check with the bank before relying on a particular address. Once you move into your permanent accommodation, make sure your banking information is updated.

Japanese Banks to Consider

Japan has a wide range of banks, from major national institutions to regional banks and financial services aimed at international customers. The right choice depends on the services you need and how comfortable you are using Japanese-language banking.

Mitsubishi UFJ Bank

Mitsubishi UFJ is one of Japan's major banking groups. Services associated with the account options described in the source include a Visa debit card alongside a standard cash card. Online banking services may be primarily Japanese-language, and English-language support can be limited depending on the service.

Mizuho Bank

Mizuho is another major Japanese bank. Its services include cash and debit card options, while the source notes that online banking is primarily Japanese-language. English-language assistance is available through customer service channels.

Resona Bank

Resona offers cash cards with Visa debit functionality. Its banking application has included English and Simplified Chinese language options, although English-language customer support may be limited.

Shinsei Bank

Shinsei has historically been popular with foreign residents because of its English-language services. The services described in the source include a Visa debit option, English online banking and English-language customer support.

SMBC

SMBC offers Visa debit cards alongside its standard cash cards. Online banking services may primarily use Japanese, while English-language assistance is available on a more limited basis.

Japan Post Bank

Japan Post Bank has an extensive branch and ATM network, making it a familiar option for many residents. Its services include standard cash cards, although online banking may primarily be offered in Japanese.

Suruga Bank

Suruga Bank provides standard banking services and cash cards with Visa debit functionality. As with many Japanese banks, customers who do not speak Japanese should check the current availability of English-language assistance before opening an account.

Using ATMs in Japan

ATMs are widely available throughout Japan, particularly in convenience stores, shopping centres, railway stations and bank branches. Many machines provide English-language menus, while some also offer additional languages.

However, not every ATM has the same language options. Smaller or regional banks may have machines that operate primarily or exclusively in Japanese, so learning a few basic Japanese banking terms can make using them considerably easier.

Useful Japanese ATM Terms

引き出し (hikidashi) means withdrawal. Choose this option when you want to take cash from your account.

お預入れ (oazukeire) means deposit. This option allows you to put cash into your account, although the precise functions available vary between machines.

残高照会 (zandaka shoukai) means balance inquiry. Select this when you want to check how much money is currently available in your account.

振込 (furikomi) or お振込 refers to a bank transfer. Transfers can be more complicated than simply withdrawing cash, particularly when the ATM menu is in Japanese. Online banking or assistance at a bank branch may be easier for unfamiliar transactions.

How to Use a Japanese ATM

Although ATM screens differ between banks, the basic process is usually similar. Start by inserting your cash card. At a bank ATM, some machines may also allow you to use your bank book for certain transactions.

Next, choose the service you require, such as withdrawing cash, making a deposit or carrying out a transfer. If you are withdrawing money, the ATM may display the applicable fee before asking you to continue.

Enter your four-digit PIN when requested, followed by the amount you want to withdraw. Before completing the transaction, the machine may ask whether you would like a receipt.

Once the transaction is complete, remember to collect your cash, card and receipt. It is surprisingly easy to walk away from an ATM while forgetting one of these items, particularly when you are unfamiliar with the machine.

Credit Cards for Foreign Residents

Getting a Japanese credit card can be more difficult for some foreign residents than opening a basic bank account. Short employment contracts, limited visa periods and a relatively short financial history in Japan can all affect an application.

Credit applications involve an assessment by the card issuer, and approval is never guaranteed. Your employment, income, address, residency status and financial history can all be relevant.

Even relatively small missed payments can create financial problems, so paying utility bills and other regular expenses on time is important when building a financial record in Japan.

How to Apply for a Credit Card

Credit card applications can generally be submitted online or through a bank or card provider. You will be asked for personal information and supporting documentation.

Depending on the application, you may need to provide evidence of income, employment information, proof of address and identification such as your passport and residence card. Some applications may also request information about assets or property.

After the application is submitted, the issuer carries out its screening process. The time required varies by provider and application, while some online card services may process applications relatively quickly.

What If Your Credit Card Application Is Rejected?

Japanese lenders do not necessarily provide detailed explanations when an application is declined. A rejection from one provider also does not automatically mean that another provider will reach the same decision, because each company has its own assessment criteria.

Maintaining stable employment, keeping up with bills and establishing a reliable financial history can all be useful when applying for financial products. Residency status and the length of your employment may also be considered.

If an application is rejected, avoid immediately submitting multiple applications without considering why the first application may have failed. The source recommends waiting before applying again to the same institution.

Sending Money Overseas From Japan

Foreign residents may eventually need to send money from Japan to another country, whether for family expenses, savings or other financial commitments. There are several ways to make an international transfer, and costs and processing times can vary significantly.

Using Your Japanese Bank

International transfers can be arranged through Japanese banks, although fees and exchange rates should be checked carefully. Depending on the bank and destination, transfers can also take several days to complete.

GoRemit

GoRemit, associated with Shinsei Bank, has offered international money transfer services through channels including ATMs and bank branches. It may be useful for people sending larger amounts, although customers should check the current service availability, fees and transfer conditions.

Seven Bank and Western Union

Seven Bank has offered Western Union money transfer services through its network. This can provide a convenient way to send money internationally, although the total cost depends on the amount being transferred and the applicable exchange rate.

Wise

Wise, formerly known as TransferWise, provides online international transfers and is widely used for moving money between currencies. Its costs and exchange rates should be checked at the time of transfer because they can change depending on the currencies and transaction.

Exchanging Currency in Japan

There are several places where visitors and residents can exchange foreign currency into Japanese yen. The best option depends on convenience, the amount being exchanged and the exchange rate and fees offered at the time.

At the Airport

Airport exchange counters are convenient when you first arrive in Japan and need yen immediately. Rates can vary, so it is worth comparing the available options if you are exchanging a large amount.

At Hotels

Some larger hotels, particularly in major cities, may provide currency exchange services. However, convenience can come at a cost, and hotel exchange rates may not always be as attractive as those available elsewhere.

At Currency Exchange Shops

Dedicated currency exchange businesses can be found around major railway stations and busy shopping areas. These are often convenient for travellers, and some locations provide assistance in English.

At Banks

Banks can also exchange foreign currency. They may offer competitive rates, but the process can take longer than using a dedicated exchange counter, particularly if you are unfamiliar with the paperwork or Japanese banking procedures.

Useful Japanese Banking and Finance Vocabulary

Learning a few Japanese banking terms can make everyday financial tasks considerably easier. These are some of the words you are likely to encounter when dealing with a bank or ATM in Japan.

Getting Comfortable With Banking in Japan

Japanese banking can initially feel unfamiliar, particularly if you have arrived from a country where most financial services are handled online. However, once you have opened an account and become familiar with the terminology, using ATMs, making payments and managing your everyday finances becomes much more straightforward.

For foreign residents, the most important preparation is to understand the documentation required, keep your address and personal information up to date, and check the fees and conditions attached to financial services before using them. Learning a handful of Japanese banking terms can also save considerable confusion when dealing with ATMs or bank paperwork.

Banking services and requirements can change, so always confirm the latest conditions directly with the relevant bank or financial service before making an important financial decision.

Original source: GaijinPot