Whether you’re a student or office worker, anyone starting their new life in Japan will most likely require a bank account for many different purposes. In this article, we’ll discuss all the important information about banking in Japan, from how to open an account to how to close one.
Can Foreigners Open a Japanese Bank Account?
When living in Japan, you’ll find that you’ll need a bank account for many things, from receiving your salary to paying for rent and utilities, sending or receiving money from abroad, receiving scholarship stipends, and more.
While we’re on the subject, you can actually often pay for rent and utilities directly to the landlord or the management company with cash or via deposit, but in most cases, it will be by having the amount withdrawn from your bank account every month. Some places won’t even rent to you without a bank account.
While we’re on the subject, you can actually often pay for rent and utilities directly to the landlord or the management company with cash or via deposit, but in most cases, it will be by having the amount withdrawn from your bank account every month. Some places won’t even rent to you without a bank account. Additionally, it’s also just dangerous to have a lot of cash lying around, so if you want to enjoy your life in Japan, you should really open a bank account.
Foreigners who meet the following conditions are able to open bank accounts that allow them to transfer money abroad:
• Those who have been living in Japan for at least six months as a student or worker • Those who have obtained a certificate of residence
However, even if you’ve been in Japan for less than six months, as long as you have a place of residence somewhere in the country, there are some banks that will let you open an account, like the Japan Post Bank. However, those accounts have restrictions on them when it comes to sending or receiving money from abroad, so be sure to keep that in mind. You don’t want to find yourself in a situation where you’ve opened a bank account and thought you’re all settled but suddenly you can’t get receive any money from your home country. Definitely inquire about this when opening your account!
Although, if you’re in Japan on a tourist visa or are some other kind of temporary visitor (allowed in the country up to 90 days), then that means you won’t be issued a residence card and therefore won’t be able to get a certificate of residence, and without this, you won’t be able to open an account.
So, those are the general conditions for opening a regular Japanese bank account, though they may differ depending on the actual bank, so you may want to apply for an account at various places. Also, the condition that requires you to be employed to be able to open an account can actually be very advantageous, as you can ask the person responsible for new employees at your company to accompany you to the bank and help you open an account. It definitely wouldn’t hurt to ask.
What You Should Know About Japanese Banks
Before we talk about ways of opening a bank account, there are some things about Japanese banks that you should know. First of all, most Japanese banks are closed on the weekends and during national holidays. So whenever you use the ATM during those times, or even on a weekday outside a bank’s operating hours, please remember that oftentimes you will have to pay a processing fee.
Additionally, you will need an inkan (personal seal). Not just to open an account, but also to set up withdrawals to pay your rent or bills (like phone, gas, electricity), or even to close your account. Inkan are used all the time in Japan, from business deals to renting a house or filling out paperwork at a city or ward office. You can order an inkan at a specialty store, home center, stationery store, or another location that is convenient for you. You should definitely get a seal with your name shortly after you arrive in Japan.
There are no stringent rules regarding inkan used to open accounts. Yours can feature your first name, last name, or both, and it can be written horizontally or vertically. The choice is up to you! However, you should probably get a seal in a font that will make it hard to counterfeit, so when ordering a seal be sure to tell the store that you’re going to use it for banking. Making a personal seal can take up to a few weeks depending on the store, so if you’ve made plans to go open an account, you should order a personal seal as soon as possible.
Which Bank is the Most Foreigner-Friendly?
There are two types of banks in Japan: physical facilities with branches that you can actually visit, and online banks with their own ATMs but no physical locations. The latter actually has a lot of features that you won’t find at physical banks, which we will now discuss:
Features of online banks: • The bank doesn’t pay for personnel or upkeep so their processing fees are low. • The interest on deposits is much higher than at physical banks. • You can check your balance and deposit or transfer money online. • The bank is in operation 24/7, except in instances of internet outages. • You can open an account online (though this depends on the bank).
We will now introduce a few banks that are recommended for foreigners.
Japan Post Bank (ゆうちょ銀行) – Physical Bank
This bank makes opening an account for foreigners easier than any other facility, as all you need are the right documents. Japan Post Bank also offers multi-language support so it’s especially recommended for those who aren’t too confident in their Japanese.
* While Japan Post Bank makes opening an account easier than most places, it limits the accounts’ features to just savings for those who’ve been residing in Japan for less than six months. You may also not be able to send or receive money with those restrictions. If you rely on money transfers from your home country, make sure you carefully read the Japan Post Bank contract before you open an account with them!
1) Required documents: Residence card, student ID, employee ID, inkan. 2) Time to open an account: Depends on how busy the Post Office is. 3) Available ATMs: Japan Post Bank, Seven Bank, MUFG Bank, etc. 4) ATM fees: None for Japan Post Bank ATMs (within the Post Office’s operating hours, which differ depending on the region). 5) Fees for receiving money from overseas: Depends on the middleman bank and the conversion rate. 6) Fees for sending money overseas: 3,000 yen (with internet banking), 7,500 yen (at the Post Office).
MUFG Bank (三菱UFJ銀行) – Physical Bank
MUFG is known as Japan’s biggest bank with locations all over the country. It’s a top-class institution that prides itself on its stability and public trust.
1) Required documents: ID (residence card, passport, or special permanent resident certificate), inkan. 2) Time to open an account: About a week. 3) Available ATMs: MUFG Bank, Seven Bank, Japan Post Bank, etc. 4) ATM fees: None for MUFG Bank ATMs on weekdays between 8:45 am and 9:00 pm. Otherwise: 110 yen. 5) Fees for receiving money from overseas: 0.05% of the sent sum (2,500 yen minimum). 6) Fees for sending money overseas: 2,500 yen (with internet banking) and 7,000 yen (at the bank) when sending money to a foreign affiliate. Otherwise, it’s an additional 500 yen.
Shinsei Bank (新生銀行) – Online Bank
This bank makes opening an account for foreigners easier than most other facilities. They also offer English support.
1) Required documents: Residence card or copy of a special permanent resident certificate + certificate of residence (original copy). 2) Time to open an account: About two weeks. 3) Available ATMs: Shinsei Bank, Seven Bank, Lawson Bank, Japan Post Bank, etc. 4) ATM fees: 110 yen per transaction. 5) Fees for receiving money from overseas: Essentially none (some conditions may apply). 6) Fees for sending money overseas: 2,000 yen + 0.1% of the sent sum (1,500 yen minimum).
GMO Aozora Net Bank (GMOあおぞらネット銀行) – Online Bank
GMO Aozora Net Bank handles currencies from many different countries, which you can deposit into your account to get a bigger interest rate than you would with yen. That’s a big plus of this bank.
1) Required documents: Residence card or copy of a special permanent resident certificate + passport. 2) Time to open an account: About three to four weeks. 3) Available ATMs: Seven Bank, AEON Bank, Japan Post Bank, etc. 4) ATM fees: Free 2 – 15 times a month (depending on membership rank), at all hours. Otherwise: 110 yen per transaction. 5) Fees for receiving money from overseas: Receiving money from overseas not possible with this account. 6) Fees for sending money overseas: Sending money overseas not possible with this account (unless with GMO Aozora Net Bank’s affiliated services).
Once You’ve Chosen the Right Bank, It’s Time to Apply for an Account! Which Documents to Prepare?
As mentioned before, the exact documents you’ll need to open an account will differ depending on the bank, but we will list the most common ones below. Try to memorize their names.
So what is opening an account actually like? We will now describe the entire process from start to finish.
(1) Go to the Bank You Want to Open an Account At
You should choose a bank that’s close to your house, school, or place of work. There’s a chance your application will get rejected if you go somewhere farther.
(2) Go to the Window for New Accounts
After you enter the bank, you should see a counter and various windows. They’re all for different services, so find one that handles new accounts (口座開設). If you can’t find it, ask a nearby staff member for help. If the bank is especially busy that day, you may have to take a number and wait your turn.
▼Useful Phrases to Know When Opening an Account
銀行口座を作りたいです (ginko-ko-za wo tsukuritaidesu): I’d like to open an account. どこの窓口にいけばいいですか？ (dokono madoguchi ni ikeba iidesuka?): Which window should I go to?
(3) Fill Out the Application and Submit All the Necessary Documents
Once you’re at the new accounts window, start filling out the application, then submit it together with all the necessary documents. You should also decide on a PIN number ahead of time.
(4) Receive Your Bank Book
After you’ve filled out the application and if there were no problems with your documents, your account will be set up and you’ll be able to receive your bankbook that very same day. Your bank card will be mailed to you at a later date (although some banks may have one ready for you on the same day). Once all of that’s done, you can exit the bank.
Do You Have to Close Your Bank Account Before Leaving Japan?
You should definitely close your bank account before leaving Japan. If you don’t, here’s what may happen: • After a set amount of time, you won’t be able to withdraw money from the account. • You’ll be charged an account maintenance fee.
You can’t close an account from overseas, so you should take care of that while you’re still in Japan. To close a bank account, you’ll need your bankbook, bank card, ID (residence card or passport), and inkan, so don’t forget to bring them with you. If you’re closing the account at the bank or online, you should be able to complete the process that very same day, but if you’re doing it by mail, it can take up to two weeks, so please keep this in mind. If the money for your water or gas bill is being withdrawn from your account, closing an account too early might cause some of those payments to not go through, so only close an account after all of your bills have been paid.
And those are the basics of opening and closing a Japanese bank account! It may seem a little difficult, but if you just follow this article and remember the most important parts of the whole process, you will be to go over it in your head and have the entire thing over and done with in no time.
Title image credit: Graphs / PIXTA
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The information in this article is accurate at the time of publication.
If you plan to leave Japan permanently, please visit a branch to close your account in advance. If you have balance on your account, you will be required to transfer it to another Japanese account, withdraw it in JPY at a branch that handles cash.
If you plan to leave Japan permanently, please visit a branch to close your account in advance. If you have balance on your account, you will be required to transfer it to another Japanese account, withdraw it in JPY at a branch that handles cash.
Setting up a bank account in Japan from abroad is not possible as you will need to present your visa and residence card in-person to your chosen Japanese bank. Only those with a residence permit may open a bank account in Japan.
Bank or post office accounts (in Japan) have to be closed at your respective service counters. If you have registered for automatic public utility deductions from your account, you must make sure that all debts are paid before closing.
You need to go to the bank teller to cancel it. To cancel the bank account, you have to bring a passbook, a cash card, a residence card, and inkan*1. If you do not cancel it and leave for ten years, your account will be inactive so that you may not use the deposit.
To close the account, call your bank, visit the bank in person, or write a letter to their offices. Your bank will have you sign an account closing form to make it official. If you don't withdraw the cash first, then your bank will send you a check when the account has closed.
To open a bank account in Japan, foreign residents must have a residence card (zairyu caado) to complete their application. With few exceptions, anyone on a 90-day tourist visa won't be permitted to open a bank account in Japan.
If you're closing the account at the bank or online, you should be able to complete the process that very same day, but if you're doing it by mail, it can take up to two weeks, so please keep this in mind.
Cancel your bank account. Many financial institutions allow you to do this online, but it could require a phone call to customer service or a visit to a local bank branch. Some banks and credit unions may require you to fill out an account closure request form or submit a written request.
Failure to pay will result in late penalties. In some cases, your assets could be seized to pay for outstanding taxes. The late penalty is calculated from the day after the due date.
If your stay in Japan is less than 90 days, you cannot open a bank account in Japan. In addition, those who stay in Japan less than 6 months are also not allowed to open it due to Foreign Exchange and Foreign Trade Control Law, even though you have a valid long-term (over 90 days) resident visa.
Credit, debit and prepaid cards of international brands are generally accepted throughout the country. There will be instances where stores may not display the symbols of the cards they accept, so ask the salesperson if you can use your card.
For instance, you will get a better exchange rate for yen in Southeast Asian countries than in Japan. But if you are traveling from the United States, definitely wait to exchange your money. You will get a much better rate in Japan for your dollars than in the US.
To close your bank account, you must write an application letter to the manager of your respective bank branch. Along with the application, you must also include/attach the documentation required to shut your account, such as a passbook, chequebook, ATM card (debit/credit), identity proof and so on.
Closing a bank account typically won't hurt your credit. Your credit score is based on how you manage borrowed money, and your checking or savings accounts aren't debts. So bank account closures aren't reported to the three major credit bureaus: Experian, TransUnion and Equifax.
No Bank can refuse to close your deposit account and even loan account if you are repaying all dues with interest. However, if the account is opened for some specific purpose and the purpose still exists, banks may in such cases refuse to close the account.
Opening a bank account in Japan is relatively easy. You will need your Residence Card (Zairyu Card, in Japanese) and your inkan or hanko (personal seal), though a signature may be enough in some banks such as Citibank (now SMBC Trust Bank/Prestia). A small deposit of 1,000 yen is enough to open your account.
The Bank has long-term debt ratings of A1 and A from Moody's and Standard & Poor's. Norinchukin is the safest bank in Japan according to Global Finance.
In Japan, J.P. Morgan provides financial services through JPMorgan Securities Japan Co., Ltd., JPMorgan Chase Bank N.A., Tokyo Branch, JPMorgan Asset Management (Japan) Limited, and J.P. Morgan Mansart Management Japan Co., Ltd.
What Are Japan's Taxes like for Americans abroad? In general, US expats living in Japan are required to file tax returns with both the US and Japanese governments. As a US citizen, you are required to file a US Federal Tax Return every year, regardless of where you live or work.
A non-resident taxpayer's Japan-source compensation (employment income) is subject to a flat 20.42% national income tax on gross compensation with no deductions available. This rate includes 2.1% of the surtax described above (20% x 102.1% = 20.42%).
It's 100% legal for US citizens to have foreign bank accounts. You just need to tell the IRS and report it properly. In fact, we've found hundreds of banks still willing to accept US clients.
Bottom line: Yes, you can keep your bank account if you move abroad. But, you need to check first with your bank to make sure that you aren't blindsided by account restrictions or unexpected fees when you do. That said, relying on your home bank account may not be the best option when living abroad.
In addition, you can also access your account from ATMs at major banks and the Japan Post Bank. ATM fees will be a flat rate of 110 yen (incl.tax) per withdrawal, however please note the ATM operating hours and transactions may be limited according the ATM.
Transfers can be made at the teller, ATM or via the internet, and are processed on the same day if made within business hours. A fee of typically 100 to 600 yen is paid by the sender.
Overall, you need at least 500,000 JPY in cash to sustain yourself for the first month in Japan. This includes cheap housing and all the other expenditures except travel expenses. Overall, I believe it would be wise to set aside at least 700,000 to 800,000 JPY if you can.
Overall, a budget traveler can expect to spend around $50 to $100 per day in Japan, while a mid-range traveler can expect to spend around $150 to $250 per day. It's important to plan ahead and research activities and costs to create a budget that works for you.
Depending on a few different factors, the process can take a day, a week, or even a few months. In most cases, closing a bank account can be finalized in one or two days.
Call your old bank or send a secure message through your online banking portal to confirm there are no pending transactions or outstanding charges and the account balance is zero. Then you can ask the bank to close the account. Some banks require written notice that you want to close your account.
Using your Cash Card or ATM Card is the Most Cost-Effective Way in Japan. There are two types of Japanese ATM fees associated with charges and the use of a foreign ATM card (whether it is credit or debit). The fees charged by your bank or card provider for taking cash out in a foreign currency.
If you withdraw $10,000 or more, federal law requires the bank to report it to the IRS in an effort to prevent money laundering and tax evasion. Few, if any, banks set withdrawal limits on a savings account.
The daily withdrawal limit is set at 500,000 yen for domestic partner bank ATMs. You can change your daily withdrawal limit from 0 yen Up to 2,000,000 yen(in 10,000 yen increments) on Power Direct(Internet banking) or contact 0120-456-022(Hours：8:30am to 5:30pm/Weekdays and Saturdays).
In Japan, unlike other countries, there are no restrictions for foreigners based on whether or not they have permanent resident status, Japanese nationality, or based on their visa type. This means that foreigners are allowed to own both land and buildings in Japan as real estate properties.
First, the simple answer is, “Yes, foreigners can purchase a home and/or property in Japan.” There are no legal restrictions on foreign ownership of real estate in Japan.
(*) For any twelve-month period that begins or ends in the tax year, the stay in Japan must not exceed 183 days. For example, if you stay for a total of 10 months, the last five months in this tax year, and the first five months of the following tax year, it will exceed 183 days.
Please also note that foreign citizens who will leave Japan (non-residents of Japan) are required to close their account before leaving the country permanently.
Closing a bank account online is simple and convenient.
And if you've moved, it might not be possible to visit a local branch to close your old account. The answer is yes, some banks let their customers close their bank accounts online. But you'll need to get a few things in order first. Here's how to do it.
Bottom line: Yes, you can keep your bank account if you move abroad. But, you need to check first with your bank to make sure that you aren't blindsided by account restrictions or unexpected fees when you do. That said, relying on your home bank account may not be the best option when living abroad.
If an individual or business issues a direct deposit to a closed account, the bank may choose to either decline the transaction or send the funds back to the payer. If they choose to send the funds back to the payer, it typically takes anywhere from five to 10 days for them to get their money back.
How Long Does It Take for the Bank to Close the Account? If your account has a positive (or zero) balance and you have no pending transactions, the bank could close your account as soon as you make the request. But having pending transactions or unpaid fees can prolong the process.
What happens to the money? If you have money in the account at the time it's closed, the bank is required to return it to you minus any outstanding fees. If an automatic deposit is made into that account after it's closed, those funds must also be returned. Typically, the bank will send a check.
Because your credit score is calculated based on information found in your credit report and bank accounts don't show up on this report, the actual closure of your checking or savings account won't directly affect your credit.
Large purchases, charges from sellers in foreign countries, or activity that seems unusual may trigger the bank or credit union to lock down your account to avoid fraud. Before traveling, contact your bank or credit union to let them know you'll be out of town.
All you have to do to keep it intact is to have the address on the account changed to a relative or friend's address in America and have your statements sent to you online.
Key Takeaways. Any U.S. citizen with foreign bank accounts totaling more than $10,000 must declare them to the IRS and the U.S. Treasury, both on income tax returns and on FinCEN Form 114.
You may think all banks are out of the question for non-residents. However, larger banks such as US Bank, TD Bank, Bank of America, Chase, and Wells Fargo will allow non-residents to set up a checking account and a savings account.
You should definitely consider filing a travel notice for every trip outside your country. If you don't file a travel alert with your card issuer, your credit card may get declined and you might need to contact your credit card company to approve your transactions.
Introduction: My name is Msgr. Refugio Daniel, I am a fine, precious, encouraging, calm, glamorous, vivacious, friendly person who loves writing and wants to share my knowledge and understanding with you.
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