A Guide to Opening a Bank Account in Japan

Japan, with its rich cultural heritage, advanced technology, and strong economy, has become an attractive destination for expatriates, students, and professionals alike. If you’re planning to stay in Japan for an extended period, one of the first things you’ll need to do is open a bank account. In this guide, we’ll take you through the steps and essential information you need to know when opening a bank account in Japan.

Basic Requirements of Opening a Bank Account in Japan

Documents you need to open a bank account in Japan:

• Residence card (在留カード – Zairyu card)
• Passport
• Evidence of your address
• Mobile phone number in Japan
• If applicable, your student ID card
• Initial deposit (any amount, but some banks might have a minimum amount you have to deposit initially) – JP Post doesn’t require one

Depending on the bank, some might also require:

• Must have been living in Japan for at least 6 months
• Personal seal (判子 – Hanko) – a signature might suffice in certain situations
• A recent utility bill showing your current address
• A business card and contract may sometimes be required as proof of your place of employment

Why You Should Open a Bank Account in Japan

Before we delve into the details of how to open a bank account in Japan, it’s crucial to understand the reasons why you need one in Japan.

Having a Japanese bank account is an unspoken requirement for anyone residing in Japan. It makes your daily life more convenient by helping you pay the bills and making transfers.

It’s also how most employers in Japan pay their employees, so you can receive your salary hassle-free.

Not only that, having a Japanese bank account simplifies international money transfers and sending money abroad.

So, having a Japanese bank account isn’t just a nice to have; it’s an essential part of your life and work in Japan! Several compelling benefits come with having a Japanese bank account:

Convenience: Having a local bank account makes it easier to manage your finances, pay bills, and receive payments.

Currency Exchange: You can convert and hold multiple currencies, making it more convenient for international transactions.

Salary Deposits: If you’re working in Japan, most employers require you to have a local bank account for salary deposits.

ATM Access: You’ll have access to a network of ATMs, which is essential for withdrawing cash and making payments.

Investment Opportunities: Some Japanese banks offer investment services that can help you grow your wealth.

Renting an Apartment: When renting an apartment, landlords often prefer tenants with Japanese bank accounts to facilitate rent payments through bank transfers. While it’s possible to use cash, nowadays, it’s very rare.

Mobile Phone Contracts: To get a mobile phone contract in Japan, you may need a Japanese bank account for automatic monthly payments. Some providers may accept credit cards, but a bank account is more common.

Internet Services: Similar to mobile phone contracts, some internet service providers may require a Japanese bank account for billing purposes.

Government Services: For certain government services and benefits, having a Japanese bank account can be necessary. This includes receiving tax refunds, pension payments, and some subsidies.

Scholarships and Grants: If you’re a student or researcher in Japan and receive scholarships or grants, having a Japanese bank account may be required for disbursements.

Now that we’ve highlighted the advantages, let’s explore more about having a Japanese bank account!

Choosing The Right Bank for You in Japan

The first step in opening a bank account in Japan is selecting the right financial institution. Japan has a variety of banks, and each has its own set of services and fees.

It’s advisable to research these banks and compare their offerings to find the one that best suits your needs. We have come up with our quick research and the easiest and the quickest one to apply for is Japan Post Bank!

It’s most likely that everyone residing in Japan has this one since their requirements are not too complicated.

How to Open A Japanese Bank Account

For foreigners who haven’t lived in Japan for at least 6 months

Most banks in Japan generally require you to have lived in Japan for at least 6 months, however, if you are really in need of opening a bank account, be it for applying for a job, internet service, and so on, opening a bank account with Japan Post Bank, or yuucho (ゆうちょ) is a way to go!

Particularly for foreigners, Japan Post is relatively convenient and swift, as it doesn’t demand a minimum residency period in Japan.

This feature sets it apart from many other financial institutions in the country, making it an attractive choice for newcomers.

Japan Post Bank has an extensive branch network throughout Japan, which is especially useful for those living in rural areas or remote regions. Additionally, they provide user-friendly banking services, multilingual support at certain branches, and a range of financial products, including savings accounts and investment options. Japan Post Bank’s reputation for reliability and stability further makes it a trusted choice for individuals looking to establish a financial foothold in Japan, whether for everyday banking or long-term financial planning.

Step 1: Gather the Required Documents

Japanese banks have strict Know Your Customer (KYC) requirements, which means you’ll need to provide specific documents to open an account.

These are the basic documents/requirements you will typically need to apply for a bank account in Japan.

Step 2: Book an Appointment and Visit the Bank Branch

Once you’ve chosen a bank and gathered the necessary documents, it’s time to visit the bank branch. Japanese banks often require you to apply for an account in person. During your visit, a bank representative will assist you in filling out the application forms.

For Japan Post, you book an appointment on their website here.

Step 3: Choose the Type of Account

Banks in Japan offer various types of accounts, including regular savings accounts, currency deposit accounts, and non-resident accounts. You should discuss your financial needs with the bank representative to determine the most suitable account type for you.

Normally, you would only need the regular type which in Japanese is called Futsuu (普通).

Go to this section for the types of bank accounts you need.

Step 4: Complete the Application

Fill out the application form with your personal information, including your name, address, and contact details. You’ll also need to specify whether you want a passbook, an ATM card, or online banking services.

We would suggest you bring a friend who is fluent in Japanese so that they can help you out with the process of filling out the forms!

Step 5: Initial Deposit

Most banks in Japan, apart from Japan Post Bank, may require an initial deposit to activate your account. The amount may vary depending on the type of account you choose. Ensure you have the necessary funds ready for this deposit.

Step 6: Await Verification

The bank will review your application and documents for verification. This process may take a few days to a week, so be patient. Once approved, you’ll receive your account details.

Step 7: Collect Your Banking Kit

The bank will send your banking kit through the mail, which typically includes a passbook, an ATM card, and online banking access details.

Step 8: Set Up Online Banking

If you opt for online banking, follow the bank’s instructions to set it up. Online banking in Japan is convenient and allows you to manage your finances from anywhere.

Types of Japanese Bank Account

1. Savings Account (普通預金 – Futsu Yokin): This is a basic, interest-bearing account that allows you to save money while having easy access to your funds. Savings accounts typically have lower interest rates compared to time deposits.
2. Time Deposit Account (定期預金 – Teiki Yokin): Time deposit accounts offer higher interest rates than savings accounts but require you to deposit a specific sum for a fixed period, usually ranging from a few months to several years. You cannot withdraw funds before the maturity date without penalties.
3. Current Account (通帳預金 – Tsucho Yokin): Current accounts are for everyday transactions and offer features like checks and debit cards. They do not typically earn interest. They are often used for salary deposits and day-to-day expenses.
4. Foreign Currency Account (外貨預金 – Yokin): Japanese banks offer accounts denominated in foreign currencies for those who deal with international transactions. These accounts can hold and transact in various foreign currencies.
5. Joint Account (共同預金 – Kyodo Yokin): Joint accounts can be opened by two or more individuals, such as family members or business partners, to manage finances together. All account holders have equal access to the funds.
6. Corporate Account (法人口座 – Hojin Konto): These accounts are for businesses and corporations. They often come with business-specific features and services, such as payroll management and merchant services.
7. Internet-only Accounts: Some banks in Japan offer online-only accounts, which can have lower fees and offer the convenience of online banking without a physical branch.

Conclusion

Frequently Asked Questions

1. Do I need to know Japanese to open a bank account in Japan?

While knowing Japanese can be helpful, many larger banks offer English-friendly services and staff who can assist you in English. It’s recommended to choose a bank with English support, especially if you’re not proficient in Japanese. However, if you have a friend who speaks Japanese, it could be a huge help if they can tag along!

2. How long does it take to open a Japanese bank account?

The process can typically be completed in one visit to the bank. It may take an hour or two, depending on the bank and the complexity of your specific case. Once your application is approved, you’ll receive your account details on the same day.

3. What fees should I be aware of when opening a Japanese bank account?

Fees can vary from bank to bank. Common fees include account maintenance, ATM usage, wire transfers, and currency conversion. It’s essential to inquire about these fees and choose a bank that aligns with your financial preferences.

4. Can I open a joint account with a family member or spouse in Japan?

Yes, many Japanese banks allow joint accounts. Both account holders must meet the eligibility criteria and provide the required documents. This option can be convenient for families or couples managing finances together.

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