Banking and Finances In Japan

Managing banking and finances in Japan can seem tricky at first, but with a little guidance, it’s easy to navigate. From opening a bank account to using ATMs and applying for a credit card, this guide will cover the essentials and important terms you need to know to manage your money in Japan with confidence.

Opening a Bank Account in Japan

Before heading to the bank, make sure you have the necessary documents ready:

• Passport
• Residence card (zairyu kaado, 在留カード)
• Personal seal (inkan, 印鑑), also known as a hanko

While some banks may accept a signature in place of a personal seal, it’s best to bring your seal just in case, as this isn’t always guaranteed. Any symbol can be your seal; you can even have one made online. But once you pick it, that is your seal until you update it.

Banks in Japan are typically open from 9 a.m. to 3 p.m., with some branches staying open until 5 p.m. If you’re working during these hours, you might need to take an hour or two off to complete the process. The time it takes to open an account can vary depending on the bank and branch, so be prepared for a short wait.

Bank Account Opening Process

Below is a simplified process for opening a bank account in Japan.

• Step 1: Request to Open an Account
  • Approach the bank counter and say:
    銀行口座を開きたいのですが (ぎんこうこうざをひらきたいのですが)
    Ginkou kouza wo hirakitai no desu ga
    “I would like to open a bank account.”
• Step 2: Complete the Forms
  • You will be given forms to fill out with personal details like your name, address, and employment status.
  • If the forms are in Japanese and you’re unsure, it’s helpful to bring someone who can assist with reading and writing Japanese.
• Step 3: Make an Initial Deposit
  • To open your account, you must make a small deposit, usually a few hundred yen, along with your completed forms.
• Step 4: Set Your PIN and Receive Your Bank Book
  • Create a 4-digit PIN code for your ATM card.
  • You’ll also receive your 通帳 (tsuucho), or bank book, which records your account activity.
• Step 5: Wait for Your ATM Card
  • Your ATM card will be mailed to your home address within 5-10 business days.
  • It will have your name, branch code, and account number.

What If You Don’t Have An Address?

The Best Banks in Japan

How to Use a Japanese ATM

Most ATMs in Japan, especially those in convenience stores and large shopping centers, offer English-language options, and many even provide multiple languages. However, some smaller regional banks may still have ATM interfaces that are exclusively in Japanese.

ATM Options and Their Functions

• 引き出し (hikidashi) = Withdraw
  Select this option to withdraw money. You will be prompted to enter the amount you wish to withdraw.
• お預入れ (oazukeire) = Deposit
  This option allows you to deposit cash (notes only—no coins). After inserting your money, the machine will ask you to confirm the deposit. Press はい (yes) to confirm or いいえ (no) to cancel and return your cash.
• 残高照会 (zandaka shoukai) = Balance Check
  Use this button to check your available balance.
• 振込 or お振込 (furikomi) = Bank Transfer
  If you need to make a transfer, select this option. Note that this can be a complicated process, especially if you don’t read Japanese. It’s often easier to perform bank transfers online or in person at the bank, where you can get assistance or use Google Translate.

ATM Step-By-Step Process

Below is how most ATMs work in Japan.

Insert Your Card

First, insert your card (or bankbook if at a bank).

Select The Option

You will have options such as whether to deposit, withdraw or transfer.

Choose To Accept The Charges

There will be a screen explaining the withdrawal fees.

Enter Your Pin

Next, enter your four-digit PIN number.

Enter The Amount 

Input the amount you want to withdraw or deposit.

Select If You Want a Receipt

Transferring Money Overseas from Japan

Here are some options for transferring money overseas:

Your Bank
You can transfer money through your Japanese bank, though it tends to be costly with unfavorable exchange rates. Transfers can take a few days to several weeks, depending on the bank.

GoRemit (Shinsei Bank)
GoRemit allows transfers to be made either at an ATM or in person at a bank. It’s a good option for larger transfers. The service is quick, usually taking a few days to complete.

Seven Bank & Western Union
Seven Bank’s partnership with Western Union, available at convenience stores, offers an easy way to send money. Fees vary depending on the transfer amount, and the exchange rate is not always the best.

TransferWise (now Wise)
Wise is a low-fee service with competitive exchange rates. Transactions are done online, and the process is quick, often taking a couple of days. It’s user-friendly and available in English.

Exchanging Currency in Japan

At the Airport
Currency exchange at the airport typically offers rates similar to those at city center exchange shops. While you may save a bit by exchanging money in town, airport rates aren’t as unfavorable as in many other countries.

At Hotels
Currency exchange services are less common at hotels in Japan compared to other countries. Larger hotels in cities like Tokyo and Osaka may offer this service, but the rates are usually less favorable than those found at banks or exchange shops.

At Currency Exchange Shops
Currency exchange shops, such as Travelex, are a convenient and efficient way to exchange money. These shops are commonly located near major train stations and popular shopping districts. Most have staff who can assist in English, making them a tourist-friendly option.

At Banks
Banks typically offer competitive rates and low fees for currency exchange, though the process can be time-consuming. You’ll need to set aside extra time to navigate the language barrier and complete the transaction, especially during busy hours.

Vocabulary for Banking and Finance in Japan

Below are common words for banking in Japan.

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