Opening a bank account is not mandatory, but if you work in Japan, you need a local bank account in order to receive your salary. Foreign cards work fine for payments and withdrawals, but they are not sufficient for receiving a salary.
Introduction
Some banks may refuse to open an account if your Working Holiday Visa is close to expiration. To avoid this, it is best to complete this step as soon as you arrive in Japan.
When opening the account, you may be asked some questions that seem unusual, for example about possible membership in a criminal organisation. This is a standard legal procedure applied to all new account openings.
Once your account is open, you must inform the bank of any change in your situation (address, residence status, etc.) and remember to close the account before permanently leaving the country.
Which bank should you choose?
Several banks allow foreigners to open an account with services in English and without a hanko (personal seal traditionally used for signing). In practice, however, most Working Holiday Visa holders choose Japan Post Bank for its accessibility. Other well-known banks include:
- Yucho Bank (Japan Post Bank / ゆうちょ銀行)
This is the easiest bank for newcomers. Opening an account is straightforward, without a hanko, and with forms available in English. Services are fairly basic and some operations, such as bank transfers, may be limited during the first six months, but you will be able to receive your salary and withdraw cash.
- Shinsei Bank (SBI Shinsei Bank / 新生銀行)
Not accessible to newcomers: you must have lived in Japan for at least six months. Once eligible, it is a convenient option thanks to its English interface and simplified procedures. It does not issue a bankbook, but the account number and branch code are sufficient for employers.
- Mitsubishi UFJ Bank (MUFG / 三菱UFJ銀行)
A very widespread bank, but account opening is more restrictive. A hanko is often required and staff rarely speak English. It is a reliable option, but generally less suited to working holiday makers who have just arrived.
Instructions for Japan Post Bank
These steps apply to Japan Post Bank, one of the most popular choices among working holiday makers. Other banks may have slightly different rules.
First of all, you must have your address registered on the back of your residence card (learn how). Without this, no bank will agree to open an account.
Then go to the Japan Post Bank branch closest to your home. No appointment is required. If you choose another branch, your request may be refused.
Japan Post Bank allows you to pre-open an account via its mobile app. However, some Working Holiday Visa holders encounter difficulties at this stage. You can try it out.
- If the pre-opening works, you will just need to finalise the procedure at the branch.
- If it fails, the account will be opened manually via paper forms.
Once the account is opened, you will be given your bankbook, which is used to withdraw cash. Your debit card will then be sent by post to the address registered on your residence card, usually within about two weeks. It is therefore important to have a fixed address when opening the account.
Cash card vs. credit card
In Japan, there are two types of payment cards: cash cards and credit cards.
Cash card
This is the debit card you receive when you open a Japanese bank account. It can only be used to withdraw cash from ATMs. You cannot use it in shops or online, and it does not work abroad.
You therefore need another card (an international bank card or an online bank card) to make payments in shops. Otherwise, you will have to pay for everything in cash.
Credit card
A credit card allows you to pay in shops or online. It is linked to your main account (the one associated with your cash card). You can also withdraw cash from ATMs, which your cash card can also do. Credit cards can be used when travelling outside of Japan.
It is very difficult to obtain a credit card in Japan, especially with a short-term visa such as a Working Holiday Visa. Japanese banks often refuse applicants with no credit history in the country.
It is sometimes possible to obtain one through independent providers such as Rakuten, or via rewards cards offered by retail chains. The procedures for doing so are usually in Japanese.
How to make payments without cash
If cash cards are only for ATM withdrawals and credit cards are difficult for Working Holiday Visa holders to obtain, then what do you do if you don’t want to pay in cash everywhere?
1. Via IC transport card
IC transport cards (Suica, Icoca, etc.) can be used as prepaid cards to pay in convenience stores, at street vending machines and in some equipped shops. If you want to use your transport card to pay, check that there is a terminal displaying the IC card logo. The payment will be deducted from your card balance.
2. Via cards from a foreign bank or an online bank
Cards issued by foreign banks (i.e. card from your home country) and online banks work just fine in Japan. You can pay with them and withdraw cash from ATMs.
Wise is a very popular online bank (also referred to as a neo-bank). There are no physical locations, and all procedures are easily done online. You can hold more than 40 currencies at once and easily convert between currencies.
3. Via payment apps
It is also possible to pay using very popular payment apps such as PayPay or LINE Pay by tapping your smartphone.
Cash in Japan
In Japan, cash is still king. In many small shops and restaurants, it is still the only accepted means of payment. It is therefore strongly recommended to always carry some cash with you.
Withdrawing cash with a foreign card
You should be able to withdraw cash with a foreign card from most ATMs in Japan. ATMs in convenience stores (open 24/7) and at Japan Post Bank branches also accept foreign cards. Be mindful of fees, which vary depending on the machine and the card used.
Exchanging money
Currency exchange is mainly useful when you arrive in Japan or just before you leave. It is advisable to have some cash on hand as soon as you arrive.
It is easy to exchange money directly at the airport when you land, at exchange counters. Rates there are generally slightly higher than in city centres, but this option remains convenient on arrival. In fact, exchange offices are fairly rare in cities and opening hours are often limited in major banks.
Be aware that not all banks offer currency exchange services. Japan Post Bank, Mitsubishi UFJ, and HSBC are among the ones that do provide this service.
If you wish to arrive with yen already in your pocket, you can also exchange cash in your home country before departing for Japan.
Transferring money to a Japanese bank account
To transfer money from your home country to your Japanese account, it is recommended to use intermediary services such as Wise in order to reduce fees.
It is also possible to make a direct bank-to-bank transfer. However, the Japanese equivalent of a bank account reference is presented differently, and adding a Japanese beneficiary from a foreign bank can take several weeks. Fees can also be high, so this route is not recommended. If you do pursue this method, note that it is important to first register your My Number with your Japanese bank. Otherwise, the transaction may be refused.
Similarly, transfers via PayPal, which are subject to relatively restrictive limits, are generally not the most suitable solution either.
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