Introduction
If you’re on a working holiday in Japan, setting up a bank account can be an essential step for managing finances and receiving wages from employers. However, the process may be tricky for foreigners due to language barriers and varying bank policies. Additionally, not all working holiday visa holders are eligible to open a bank account immediately. Many banks require you to have lived in Japan for at least six months before allowing you to open an account.
Despite this limitation, some banks, particularly digital banks and those with international services, have more flexible policies. Choosing the right bank depends on various factors, such as English support, online banking features, and ease of account setup. This guide will walk you through the process of opening a bank account in Japan, comparing different types of banks, and selecting the most foreigner-friendly options.
Why Open a Bank Account in Japan
Opening a bank account in Japan is important for managing your finances while living and working in the country. If you’re on a working holiday, having a local bank account makes it easier to receive wages from employers, pay rent, and handle everyday expenses without relying on international transactions, which can incur high fees. In addition, having a bank account in Japan allows access to various financial services, such as credit cards, savings accounts, and loan options. Japan’s economy is still fairly cash-based, so being able to withdraw cash cheaply from ATMs will save money and provide convenience.
Understanding the Different Types of Banks in Japan
Japan has a wide range of banks, and choosing the right one depends on your financial needs, language proficiency, and location.
Megabanks
Megabanks are large, nationwide banks with extensive branch networks and services. They provide a full range of banking services, including international remittances and investment options. However, they may have stricter requirements for opening an account and often require the applicant to have stayed in Japan for a minimum stay of six months prior to account opening. Popular megabanks include MUFG Bank, Mizuho Bank, and Sumitomo Mitsui Banking Corporation. These banks are known for their reliability, widespread ATMs, and financial services that accommodate international transactions. However, their strict eligibility criteria, and longer account opening process, can be challenging for foreign residents.
Regional Banks
Regional banks primarily serve specific prefectures or localities. They are ideal for those living outside major cities and provide better accessibility to local banking services. These banks offer more personalized customer service and often have greater flexibility for foreign residents who do not meet the six-month residency requirement. However, their branch networks are limited outside their respective regions, English support is minimal, and they may have fewer international money transfer options compared to megabanks.
Digital Banks
Digital banks operate mostly online, making them a convenient choice for those who prefer managing their finances without visiting a physical branch. Popular digital banks in Japan include Rakuten Bank, Sony Bank, and PayPay Bank. These banks are known for their easy account setup process and user-friendly online platforms. However, the downside is that they often have no physical branches meaning limited options for in-person customer support.
Choosing an English-Friendly Bank in Japan
Not all Japanese banks cater to foreigners, and some have stricter requirements for those on a working holiday visa. Below are three of some of the most accessible banks with English support.
Shinsei Bank - website
Shinsei Bank is one of the most foreigner-friendly banks in Japan, offering extensive English support through its website, customer service, and mobile banking. It is also known for its easy account setup process, with no in-person visit required for some applications. Unlike many traditional banks, Shinsei does not require a personal seal (hanko), making it more accessible to new residents.
Prestia (SMBC Trust Bank) - website
Prestia, a division of Sumitomo Mitsui Trust Bank, is tailored towards international customers. It offers premium banking services, including multi-currency accounts and international remittance options. However, opening an account may require proof of long-term residence and an initial deposit. In addition, there may be a monthly “maintenance fee” if certain requirements are not met.
Japan Post Bank (JP Bank / Yucho Bank) - website
Japan Post Bank is one of the easiest banks for foreigners to open an account with, even for those on a working holiday visa, as there is no requirement for 6 months of previous residency in Japan. It has branches in nearly every city and town, making it a convenient option. However, online banking and customer service in English are limited. In-person-application filing is also required.
Requirements to Open a Bank Account in Japan
Before applying, check the account opening requirements, as they vary from bank to bank. The most common requirements are:
- Passport: Must be valid with your Working Holiday Visa stamp.
- Residence Card (在留カード, Zairyu Card): The current address must be printed on the back.
- Personal Identification Number (My Number): My Number is Japan’s national identification system issued to all residents in Japan, including foreign nationals Japan used to track various government services. Please see our guide on how to obtain one.
- > https://blog.vocationabroad.com/mynumbersystem-in-japan/
- Proof of Address: An original copy of a utility bill will often suffice, or a residence certificate (民票, Juminhyocan) be obtained by registering your address at the local city hall.
- Japanese Phone Number: This must be your phone number.
- Personal Seal (Hanko): Available for purchase at specialized stores; some banks may require it for account registration others may accept a signature.
- Initial Deposit: Amount varies by bank; some require a small deposit to activate the account.
After having these necessary items prepared, complete an application online or by visiting the bank of your choice. Once the application processing is complete (usually a few days to 2-3 weeks), you’ll receive your bank book and ATM card.
Conclusion
Opening a bank account is a crucial step for a smooth working holiday experience in Japan. While banks like Shinsei Bank, Prestia, and JP Bank offer more accessible options for foreigners, requirements vary. Understanding the process in advance will help ensure a hassle-free setup.