How to open a bank account in Japan

If you’re heading to Japan to live, work or study, getting a Japanese bank account to hold, spend, receive and exchange Japanese yen is pretty much essential.

However, opening a Japanese bank account can be a complex process - particularly if you’re trying to get everything set up before you arrive in your new home. This guide will take a look at how to open a Japanese bank account, the documents required, and how accounts from alternatives like Wise compare.

What documents do I need?

Let’s start with the typical documents needed to open a bank account in Japan. While the exact requirements may vary a bit depending on the bank or provider you select, you can expect to need the following:

• Residence (zairyu) card, which must usually have 4 months or more validity left

• Personal seal

• Documents to confirm your Individual Number (My Number), such as your Individual Number card, notification card, or a transcript of the resident register

You may also need to provide documentation verifying that you have resided in Japan for longer than six months or documentation verifying your working status in Japan.

If your residence card has four months or less remaining in your period of residence you’ll usually need to open your bank account once you have renewed your card.

Need to make international transfers from Japan: check out alternative solutions like Wise 

If you’re looking to open a Japanese bank account to send international transfers, you may find you can get a better overall price by avoiding your bank and using Wise instead.

Wise customers can send money to 160+ countries with the mid-market rate and low, transparent fees. If you’re planning to move to Japan and need to send a payment prior to relocating, Wise can help. Or, if you’re already in Japan and want to send money back home, check out Wise for flexible payment solutions which can get your money moving in no time at all.

How to open a Japan bank account as a foreigner

You can open a bank account in Japan if you’re a foreigner, as long as you have appropriate documentation, which usually includes a valid residence (zairyu) card. If you don’t have this already, you may be asked to wait until you’ve got your card before you can apply.

Some Japanese banks support a digital account opening process, but this is not universal - particularly if you aren’t a Japanese citizen. If you can’t open your account online you’ll need to arrange an appointment to attend a branch with all your paperwork.

Here’s a quick summary of the standard process to open a bank account in Japan as a foreigner:

1. Choose the perfect account for your needs

2. Get all your documentation ready

3. Apply online, or in a branch in person

4. Submit your documents online or in a branch

5. Once your account is verified you’ll be able to start transacting

What do I need to know before opening a bank account in Japan?

The processes and requirements for opening a bank account in Japan can vary quite a lot depending on the bank you select. Generally, core Japanese bank accounts are offered for residents, rather than tourists or visitors in Japan - which means you’ll need to have proof of your legal residency and tax registration to apply.

Can I open a bank account in Japan only with my passport

You’re unlikely to be able to open a Japanese bank account with just a passport. Usually proof of legal residency in Japan is required, even if you’re using a service which lets you open your account digitally or from overseas.

MUFG

MUFG has accounts which are available for foreigners living and working in Japan. You’ll need to open your account in person, and provide proof of your working status and the length of time you’ve been in Japan. To be considered a resident you must work full time and have been in Japan for 6 months or more.

If you’re considered to be a non resident because you do not meet the requirements of the bank, you’re likely to meet restrictions in terms of the services and products you can apply for.

How to open an account with MUFG

To open an account with MUFG you’ll need to gather up the required paperwork and visit a branch in person. The exact documents you need depend on your personal situation, but will always include your residence card, evidence of your My Number and proof of your resident or working status in Japan.

SMBC

SMBC can offer accounts to foreigners who have lived in Japan for 6 months or more and who have legal residence for at least another 3 months. If your residence card will expire within the next few months, you’ll need to renew it prior to opening your SMBC account. Assuming you’re eligible, SMBC has a good range of account and card products in JPY to manage your money day to day.

How to open an account with SMBC

It may be possible to open your account online if you meet the SMBC eligibility requirements. Start your application via the SMBC website and if you can not apply fully digitally you can complete the process in a branch.

Seven Bank

Seven Bank, from popular convenience store 7-Eleven, offers accounts to manage your cash, send payments locally and overseas, and for debit purposes. You can apply online in many cases, and then transact either digitally or through ATMs in stores and some banks.

As a local provider, Seven Bank accounts hold JPY only, so may not be the most cost effective option for managing your international transactions.

How to open an account with Seven Bank

You should be able to open your account with Seven Bank online as long as you have all of the correct documents needed. Make sure you have everything to hand when you apply, as unfinished applications expire after 24 hours - so if you miss the deadline you'll need to start the process again.

Tokyo Star Bank

Tokyo Star Bank offers foreign non-resident customers the option to open JPY and foreign currency deposit accounts and loans. If you have a residence card you may find you can also access some other account products and services. Bear in mind that you must prepare a set of documents and visit the bank’s head office to open this account - which may not be the most practical choice.

How to open an account with Tokyo Star Bank

To open your account with Tokyo Star Bank you must visit in-person to apply in the Head Office Financial Lounge. Remember to take along all your documents for verification.

What is a bank account in Japan needed for?

If you’re moving to Japan, you’re likely to need a bank or provider JPY account to access basic services, pay rent, and arrange utilities, mobile phones and so on. JPY accounts also offer the following features:

• Easy to receive payments from others in JPY

• Hold JPY and other foreign currencies to make transacting internationally cheap and simple

• Spend conveniently with a local bank card in Japan

• Access other financial services in Japan like credit cards or loans

Advantages and disadvantages of opening a bank account in Japan

If you’re not completely sure you need a Japanese bank account you’ll want to weigh up some pros and cons. Here’s some food for thought:

Advantages of opening a bank account in Japan

• Hold and spend JPY with no additional fees

• You may be able to receive payments like your salary to your account

• Useful for paying local bills

• Most accounts offer the option to send money internationally when you need to

Disadvantages of opening a bank account in Japan

• You must be a resident in Japan in most cases - if you’re not you may decide an account with a non-bank alternative like Wise is a better fit

• Language barriers may be an issue

• You’ll need to invest time in understanding the fee schedule which may be very different to what you’re used to

Can I open a bank account in Japan before arrival?

You will usually find you have a very limited choice if you need to open an account with a Japanese bank before arriving. Some banks may not be able to support you with any products at all.

If you want something more flexible, check out multi-currency accounts from popular providers like Wise, which you can open from many countries around the world and use at home and abroad in a range of currencies.

Can I open a bank account online?

Yes. In theory, you can open a Japanese bank account online with some select banks, if you have legal residency in Japan, and a full set of paperwork for verification purposes. However, not all Japanese banks allow online applications for foreign customers, which may make non-bank alternatives like Wise  a more straightforward option.

How long does it take to open a bank account in Japan

The length of time it takes to open a Japanese bank account and have it verified can vary a lot. Some banks state it’ll take only about 24 hours, while others warn of a wait of at least a week. When you apply, be sure to ask the bank you’ve picked what their time scales look like, so you’ll know what to expect.

What are the types of bank accounts in Japan

The 2 key types of account you’ll see in Japanese banks are 普通 /Futsū - translated as an ordinary account or 当座 /Tōza, which is usually translated as current account or checking account.

An ordinary account is usually a savings product, while a current account is for everyday use. Foreigners can also often be offered foreign currency savings accounts including time deposit accounts.

How to choose a bank account in Japan

You’ll need to research the Japanese bank account options you’re eligible to open before deciding which is best for you. When you compare your options, make sure to look at all ongoing costs like maintenance fees, as well as the transaction fees which apply when you use your account.

It’s also worth checking if the bank you prefer has good in person, online and phone customer service which you can access easily - and in English if needed - if you ever need help.

If you struggle to find something which you think will suit your own specific needs, remember to check out non bank alternatives like Wise as well as Japanese banks to see if there are products which work for you.

How much does it cost to open a bank account in Japan? 

You may find that there’s no fee for opening your Japanese bank account. However, there are likely to be transaction fees, including ATM and payment fees which can be pretty steep, especially for international transactions.

It’s worth investing the time to read the account fee schedule carefully before you get started, to make sure you don’t run into any unexpected charges when you transact.

Is it possible to open a fee-free account in Japan?

It’s not usually possible to open a bank account which has absolutely no fees. You may find accounts which have no monthly charges to pay, which can help to keep down the costs overall. But generally there will still be transaction fees for some services, such as making an ATM withdrawal or sending money.

What are the additional costs?

Here are a few things to look out for when you’re weighing up your account options:

• Out of network or out of hours ATM fees

• Local and international transfer fees

• Receiving fees for domestic and international payments

• Foreign transaction fees

To get the best deal, look carefully at all the costs of any account you’re considering - particularly for the types of transaction you need to make often.

Tips for sending money abroad

If you’re moving to Japan you may well need to make international transfers to manage your money across different countries and currencies. Here are a few tips to help you make sure you get the best overall costs:

• Banks typically use a marked up exchange rate - compare the exchange rate you’re offered against the rate you find on Google to check

• International transfer fees can vary depending on whether you arrange the transfer online or in a branch

• Review the terms and conditions of your specific account to check if it’s cheaper to send your payment online - this is usually the case

• Don’t forget that third party fees may be deducted as the payment is processed, and can mean your recipient gets less than you expect

Can I open a business bank account in Japan? 

You may be able to open a business bank account in Japan, either with a local bank or with a non-bank alternative like Wise. You’ll need to make sure you meet the eligibility criteria for the bank or provider you select, and provide paperwork to support your application and for verification.

Some banks may allow you to apply for a business bank account online, but it’s common as a foreigner to need to visit a branch to discuss your needs and apply in person. If you want a business account you can open entirely online, check out Wise Business as a good alternative.

What are the steps to open a business account in Japan

The way you open a business account can vary depending on the account and provider you’ve picked. However, the normal steps to open a business account in Japan include the following:

1. Choose the right account for your business needs and check your eligibility

2. Get all your documentation ready - this will vary based on entity type

3. Apply online, or in a branch in person

4. Submit your documents online or in a branch

5. Once your account is verified you’ll be able to start transacting

Things to be careful when opening an bank account in Japan

• Make sure you’re eligible for the account you’ve selected - rules tend to be quite tight, and not all accounts are suitable for all customers

• If your residence card has 4 months or less left to run you’ll probably need to wait until you renew it before you can apply

• Make sure you close your account when you leave Japan, to avoid unnecessary fees and hassle

Conclusion

As a foreigner or non-resident you’ll be able to open an account to hold and manage JPY, but you might find that using a bank is quite complicated. You’ll usually be asked to provide proof of legal residency and your My Number card when you open a bank account. If you don’t have these yet, you’ll probably find your application is rejected.

Take a look at flexible alternatives like Wise These aren’t bank accounts, but they do let you hold and spend JPY conveniently, and come with extras like multi-currency functions and low cost overseas payments, too.