Japan is home to some of the world’s largest banks, but they are making it hard to open a bank account if you are a foreigner or are not prepared. But for the most part, you need it to exist in the world, from collecting your paycheck to buying food, paying for utilities, anything you might want to purchase or simply stashing cash away in case of emergencies. In this guide, we break down the procedure of opening a bank account in Japan as a foreigner into 3-steps, which you should follow when you first arrive here. That should increase your chances of successfully opening a bank account in Japan. So, let’s get started.
Step 1 – Find a Foreigner-Friendly Bank
Our first step is finding a place that’s ready to welcome us. So, I put together a list of 10 banks that are welcoming to foreigners. The first name on our list might surprise you.
Top 5 Traditional Banks
- Japan Post Bank (Yucho Bank)
The post office is where you’re always supposed to line up. It’s probably the most convenient place for anyone to open their first bank account. Let me explain. They are everywhere. You can enter any Japanese post office with a bank and open an account. You can also do it online. And they have a nifty application; I was pretty surprised. And they have something that others don’t have. They do not require you to stay in Japan for at least 6 months before opening a bank account. That is a big hurdle for everybody, but you do not have this hurdle with Japan Post. One thing is that they have a lot of different explanations in a lot of other languages. So, check Japan Post first, even if you are a student, it will work out.
- Mitsubishi UFJ
Mitsubishi UFJ. It’s the biggest one. It’s also the most traditional. You must go to a branch to open your bank account if you’re a foreigner. You cannot use the online application. They are pretty used to having foreigners, so it was a little bit easier. Minimal support, just English, no other language. But it’s a bank you’re going to have everywhere.
- Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Banking Corporation or Mitsui Sumitomo Bank is very large. You can do everything online, and they’ll give you a cash card and a debit card from the get-go. Many languages are available.
- Mizuho Bank
Mizuho Bank is a bit more traditional. Again, you can do it online, but there is limited English or Japanese support offline. They also have many languages, so you can go for that.
- Prestia Bank
Prestia Bank used to be Citibank in Japan, but Citibank went away. It became Prestia Bank. It’s part of the SMBC group as well. It’s a bit more of an upscale bank They’re going to charge some fees if you don’t have a minimum deposit there, but full service in English. You can do your application online.
Those are the first five major banks. Now, let’s move on to the next five, which are more online banks.
Top 5 Online Banks
- Shinsei Bank
Shinsei Bank has been around for a long time. It was bought back by SBI, which is also part of the Sumitomo Mitsui Banking Corporation. You have many branches. You can also apply online. You still need to send some of your documents by mail to confirm. There is limited English support or any other language support, but you can give it a try.
- GMO Azura Bank
GMO Azura Bank is also completely online, and its applications are available in many different languages. So, give it a check. They have many explanations and a relatively OK online service.
- Jibun Bank (Eiyu x Mitsubishi UFJ)
Eiyu Jibun Genko is basically Eiyu, the mobile phone company, and Mitsubishi UFJ getting together and proposing this service that’s only online. There is very limited English support there, but it’s very convenient and accessible anytime, and you can get your money from the ATMs for a very low fee.
- Rakuten Bank
Then we have the mammoth Rakuten Bank, part of the Rakuten Empire, which has many services. So Rakuten Bank is only online. You can apply online on an English website. Again, limited support in English, but very convenient. And if you like Rakuten anyway, why don’t you get into their ecosystem from the get-go, also with your bank account?
- Sony Bank
The last one is Sony Bank, which is also completely online. They have a little bit of support in different languages, but it’s very limited. Again, you’re going to have to do everything online.
So here you go. You have 10 banks to get started and choose the one that looks the most appealing to you. There’s a lot of information all of a sudden. Put it in the comment down below, and like you’re there, please give it a like. That’s going to help us write blog posts available to more people, and we’re going to be able to spread this information to other people.
Step 2: Get Your Documents Ready
Let’s continue. Now that we have decided which bank to target, what do you need to get ready before submitting your application, whether online or in the branch?
- Residence Card (Zairyu Card)
The first thing you’ll need, no surprise here, is your Residence Card (Zairyu Card), which you get when you settle in Japan for a certain amount of time. You can’t do anything without it. It must be up to date, so have it ready.
- Passport
You might need to have your passport ready as well. Sometimes, banks will want to examine it.
- Student ID
And if you are a student, get your student ID ready as well, especially for certain banks that offer student-specific accounts.
- Proof of Address (if applicable)
Then, you need to have Proof of the address. This usually is your family registry or Juminhyo (residence certificate), which you can get from your ward office. Sometimes, they’ll be okay with a utility bill, but the Juminhyo (residence certificate) is better, or even better, my number card, which is kind of a replacement in Japan for an ID card.
- Mobile Phone Number
This is essential. You won’t be able to open a bank account without a mobile phone number. And I know that to have a mobile phone number, you need a credit card or a bank account. It’s a bit of a chicken-and-egg issue here. Maybe your company can provide you with a phone. Maybe you can have a prepaid phone for a certain amount of time. You can always change it afterward if you have a new number.
- Initial Deposit (if required)
Some Banks may ask for an initial deposit. That is not always the case, but it’s good to have 10,000 yen in cash that you can deposit into your bank account after opening it. Of course, if you’re opening an account online, it’s not an obligation. It’s only when you’re going to the branch.
So those are the basics, but you should be ready to have a bit more paper just to ensure you’re well prepared.
Additional Documents to Have on Hand:
- Personal Seal (Inkan): The signature was legal, and you can use signatures, but the banks would require the seal. So just get one. Get it registered in advance, especially if you must send some paper or go to the bank. It’s going to help you a lot to have one. Everybody uses it. If you’re in any company, you’ve seen it used many times. So, it’s not an obligation, but that will significantly help you.
- Proof of Employment (if applicable): If you’re employed, you will need Proof of employment. Usually, suppose your company can prepare a letter with company letterhead explaining what you’re doing, how long you’ve been employed, and eventually your salary. In that case, you might also be asked for Proof of revenue. Maybe it’s a few pay slips, maybe it’s also a letter from your company.
Step 3: Apply for Your Bank Account
Now that you have all the necessary documents, you can apply. There are two main ways to do this.
> Applying Online
If you are applying online, just have all your paperwork ready and go through the process. But be prepared; you must mail some of the identification for verification.
> Applying In-Person
If you are going in person to one of the banks that have actual physical branches, prepare, again,
- Your documents (make photocopies just in case)
- Your Inkan (personal seal), if required
- Proof of employment or income (if applicable)
Bring everything in order and make sure that you have everything they require. Put an appointment in with the branch because you don’t want to wait or have so many people in front of you. Remember a few things: usually, Japanese banks open quite early in the morning, but they close early in the afternoon, so you need to put in an appointment early in the morning.
Last Tips for Opening a Bank Account in Japan
- Dress appropriately: Remember to dress up normally, but don’t wear flip-flops. Look presentable.
- Bring a Japanese speaker: if your Japanese is not up to par, which is entirely okay, bring a friend who can speak Japanese. Japanese nationals would be even better. If you are employed, ask HR to come along with you.
- Patience is key: Be on time and ready to wait; usually plan for an hour. Be well prepared and remain calm. Things take time and patience. Things take time and patience.
And that’s it. You’re done through a three-step process.
What You’ll Get After Opening Your Account
Once your account is set up, you’ll typically receive:
- A passbook: While not as common nowadays, some banks still issue a passbook that records all transactions.
- A debit or cash card allows you to make ATM withdrawals and purchases. Some banks also issue both a debit card and a credit card, though you may need to apply for a credit card separately.
Building Your Credit History in Japan
You probably want a credit card, especially if you come from Europe or North America, because it’s the land of credit cards, right? You’ll get a credit card, but remember, you have no credit history here. You just arrived. You just opened your bank account. Start with a debit card if you can. If you want a credit card, apply through your bank. They’re going to give it to you. Maybe not immediately, but they’re going to give it to you. Also, go for a very simple one. Build your credit. And whatever you’re doing, make sure to pay your balance every month. Don’t carry over balances. It costs too much money. It’s not worth it.
Conclusion:
Opening a bank account in Japan as a foreigner might seem complicated, but following these three simple steps, choosing the right bank, preparing your documents, and applying for your financial life in Japan will be off to a smooth start. Whether you choose a traditional or online bank, ensure you have everything to avoid delays. Once your account is open, you’ll have the freedom to manage your finances with ease.
Have you opened a bank account in Japan? Share your experience in the comments below!
