🇬🇧 Understanding the Basics

Chapter 1. Why You Need a Bank Account in Japan

Opening a bank account is one of the first essential steps when you start living in Japan. Whether you are a student, an employee, or a long-term visitor, a Japanese bank account becomes the foundation for your financial life. It allows you to receive salaries, pay rent, and manage daily expenses efficiently. Without it, even simple tasks—such as setting up a phone contract or subscribing to utilities—can become unexpectedly complicated.

Japan’s economy is still largely built around traditional bank transfers. Employers rarely pay cash salaries, and landlords often require rent to be paid by bank transfer each month. Even digital services like online shopping or mobile payments (PayPay, LINE Pay, Rakuten Pay) are usually connected to a domestic bank account.

Furthermore, having a Japanese account simplifies many government and legal processes. For instance, refund payments from tax offices, pension contributions, or insurance claims must be deposited into a local account.

However, opening one is not always straightforward for foreigners. Banks tend to be cautious with documentation, language, and residence status. Understanding how the system works before visiting a branch can save you time, frustration, and possibly rejection.

Chapter 2. Types of Banks in Japan

Japan offers several kinds of financial institutions, each serving different needs. Choosing the right type of bank can make your life much easier.

1. Major “Mega Banks”

These are the largest and most traditional institutions, such as:

MUFG (Mitsubishi UFJ Bank)
SMBC (Sumitomo Mitsui Bank)
Mizuho Bank

They have extensive branch networks and ATMs across the country. Some branches in big cities (Tokyo, Osaka, Yokohama) provide English-speaking staff and bilingual forms. However, they may require strict documentation and often reject short-term visa holders.

Best for: long-term residents and full-time workers who need stable services and international transfers.

2. Regional Banks and Credit Unions

These focus on specific prefectures or cities. They usually have more personal service but limited English support. Requirements are often similar to the major banks, though some are more flexible toward foreign students if you live in the area.

Best for: those living outside major cities or wanting community-oriented service.

3. Japan Post Bank (Yūcho Ginkō)

This is one of the easiest banks for foreigners. With branches in every post office, Yūcho is accessible even in rural towns. English assistance is limited, but procedures are simple.

Best for: students and part-time workers who need a basic savings account for salary deposits or remittances.

4. Online and Neo Banks

Recently, internet-based banks have become extremely popular:

Rakuten Bank
Sony Bank
SBI Sumishin Net Bank
PayPay Bank
Revolut Japan (international digital bank)

These offer easy account opening through apps or websites—sometimes fully in English. They’re also ideal for people who prefer digital banking and low fees.

Best for: tech-savvy foreigners, freelancers, or those without time to visit a branch.

5. Comparison Snapshot

Bank Type	English Support	Minimum Residency	Best for	Example
Mega Banks	Partial	6 months +	Long-term workers	MUFG, SMBC
Regional Banks	Limited	6 months +	Locals, students	Chiba Bank
Japan Post Bank	Minimal	Flexible	Students	Yūcho
Online Banks	Good–Excellent	Variable	Freelancers	Rakuten, SBI
Digital Banks	Excellent	None	Global transfers	Revolut, Wise

Chapter 3. Required Documents and Eligibility

Banks in Japan are heavily regulated, so the documentation process is precise. Having all papers ready will dramatically increase your chances of approval.

1. Passport

Your passport is your main identification document. It must be valid, with a visible entry stamp.

2. Residence Card (在留カード – Zairyū Card)

Every foreign resident in Japan receives a residence card issued by immigration. It shows your visa status, address, and period of stay. Banks use it to confirm your right to live and work or study in Japan.

Most banks require you to have lived in Japan for at least six months before opening an account. This is known as the “six-month rule,” though some banks (like Yūcho or Revolut) are more flexible.

3. Proof of Address

Usually, your address on the residence card is enough. Some banks, however, might request additional proof such as a utility bill or 住民票 (Jūminhyō) from your city hall.

4. Personal Seal (Hanko / 印鑑)

Although many banks now accept signatures, some traditional ones still prefer a stamp. You can buy a personal seal at stationery stores or order one online for about ¥1,000–¥2,000.

5. Phone Number & Email

You’ll need a Japanese mobile number to receive verification codes or set up online banking.

6. My Number (Individual Number)

Certain banks will request your 12-digit My Number (社会保障・税番号) for tax identification.

⚠️ Note for Short-Term Visa Holders

If you’re on a tourist visa, banks will not open an account for you. You must have a visa that allows residence (student, work, spouse, dependent, etc.).

Some fintech options like Revolut Japan or Wise Account can be used temporarily, but they’re technically e-money wallets, not full Japanese bank accounts.

Chapter 4. Step-by-Step Account Opening Process

Here’s what typically happens when you visit a branch or apply online.

1. At a Bank Branch

Prepare your documents.
Passport, residence card, address proof, and possibly a hanko.
Visit during business hours (usually 9 AM – 3 PM).
Take a ticket number and wait to be called.
Explain your purpose:“I would like to open an ordinary savings account.”
(Japanese: 「普通預金口座を開設したいです。」– Futsū yokin kōza o kaisetsu shitai desu.)
Fill out the form.
English assistance is limited, so take your time.
Bank reviews your documents.
They may ask questions about your residence, employer, or school.
Deposit initial amount (usually ¥1,000 – ¥10,000).
Receive your cash card.
Some banks print it immediately; others mail it to your address within a week.

2. Online Application (for Digital Banks)

Access the bank’s website or app.
Complete the form in English or Japanese.
Upload your residence card and face photo (using your phone camera).
Verify your phone number via SMS.
Wait for email confirmation (usually 1–3 days).
Once approved, your account number and login credentials are issued.

3. After Opening the Account

Register for online banking or mobile app access.
Set a strong PIN code for your card.
Link your account to payment apps if needed (PayPay, LINE Pay).
Keep your residence address updated—banks may freeze accounts if mail is returned.

💬 Example Conversation (at the Bank Counter)

You: “Hello, can I open a bank account?”
Staff: “May I see your residence card and passport, please?”
You: “Yes, here you are. I’m a student at Tokyo University.”
Staff: “Thank you. Please fill in this form. Do you have a personal seal or signature?”
You: “I’ll use my signature.”

Being polite, patient, and calm helps a lot. Bank staff often appreciate foreigners who try to communicate even with basic Japanese.

Practical Guide — Opening and Managing a Bank Account in Japan

1. Choosing the Right Bank for Your Needs

When selecting a bank in Japan, foreigners should focus on accessibility, language support, online features, and convenience. Below are some of the most foreigner-friendly banks and what makes them unique.

1.1 Major Traditional Banks

MUFG Bank (三菱UFJ銀行)
One of the largest and most stable banks in Japan. It offers English-language ATMs in major cities and basic online banking in English. However, paperwork for new accounts is still largely in Japanese.
SMBC (三井住友銀行)
Similar to MUFG, SMBC provides comprehensive financial services. English support is limited, but the staff in Tokyo or Osaka branches are often accustomed to dealing with non-Japanese clients.
Mizuho Bank (みずほ銀行)
Known for reliability and international partnerships. Offers English banking apps and multilingual staff in some areas.

1.2 Internet and Digital Banks

Sony Bank (ソニー銀行)
Fully online and foreigner-friendly. The interface and customer service are available in English, and you can open an account even without visiting a physical branch.
Rakuten Bank (楽天銀行)
Great for online shopping and cashless life in Japan. Easy to link with Rakuten Pay, Rakuten Card, and other Rakuten services.
PayPay Bank
Integrated with the PayPay app, it’s a convenient option for digital nomads and residents who prefer mobile banking.

1.3 Regional Banks and Credit Unions

If you live outside major cities, regional banks or Shinkin Banks (信用金庫) might be more accessible. However, they usually require a local address, proof of employment, and Japanese language ability.

2. Step-by-Step Process to Open an Account

The exact process varies slightly by institution, but these are the general steps you’ll encounter.

Step 1: Prepare the Required Documents

You will typically need:

Residence card (在留カード) – Proof of legal residence.
Passport
Proof of address – Utility bill or residence certificate (住民票).
Hanko (personal seal) – Not always required but often requested by traditional banks.
Zairyuu shikaku (visa type) – Some banks may reject short-term visitors or students with very short stays.

💡 Tip: Always check the bank’s website for updated document requirements, especially for online banks.

Step 2: Visit a Branch (or Apply Online)

For physical banks, visit during business hours (usually 9:00–15:00). Some banks will provide bilingual forms, but if not, you might want to bring a Japanese-speaking friend or interpreter app.

For online banks like Sony or Rakuten Bank, you can complete the entire process through the app. Verification is done via uploading ID and taking a live selfie.

Step 3: Fill Out Application Forms

You will fill in your name, address, phone number, email, employment information, and purpose of use.
Make sure to write your name exactly as on your passport — mismatched romanization can cause issues later.

Step 4: Wait for Verification

Approval can take from a few hours (for online banks) to several days (for traditional banks).
Once approved, you’ll receive your cash card (キャッシュカード) by mail.

Step 5: Set Up Online Banking

Register for internet banking to manage your balance, transfer money, and pay bills.
Most major banks now offer English interfaces, though not all functions may be available in English.

3. Managing Your Account

3.1 Deposits and Withdrawals

ATMs are widely available in convenience stores (7-Eleven, Lawson, FamilyMart).
Some ATMs charge fees outside normal hours or weekends.

3.2 Transfers

Domestic transfers (振込) can be done online or at ATMs. Fees vary but are usually around ¥100–¥300 per transaction.

International transfers are trickier. Traditional banks charge high fees (¥3,000–¥5,000+), so alternatives like Wise, Revolut, or Payoneer are often better.

3.3 Debit and Credit Cards

Most bank accounts come with a debit card.
Credit cards can be more difficult to obtain without a strong credit history or long-term visa, but Rakuten and EPOS Cards are relatively foreigner-friendly.

4. Common Issues and How to Solve Them

4.1 Account Rejection

Some banks may deny your application if:

Your visa is short-term (less than 6 months).
You lack proof of employment or a fixed address.
Your Japanese language ability is insufficient for communication.

✅ Solution: Try online banks or city branches in Tokyo that specialize in foreign clients.

4.2 Dormant Accounts

If you don’t use your account for a long time (usually over 1–2 years), it might become inactive.
Always log in or use your card at least once every few months.

4.3 Address or Visa Renewal

If you move or renew your visa, you must update your bank information. Failure to do so may cause account restrictions.

5. Taxes and Salary Deposits

Most employers in Japan will require a domestic bank account for salary deposits.
It’s important to register an account under your legal name and ensure it matches your work visa information.

Some banks may also request your My Number (マイナンバー) for tax reporting — this is mandatory under Japanese law.

6. Recommended Banks by Purpose

Purpose	Recommended Bank	Notes
Everyday life (shopping, utilities)	Rakuten Bank	Easy app, English support
Salary and savings	MUFG or SMBC	Reliable, widely accepted
International transfers	Wise, Sony Bank	Low fees, multilingual
Short-term stay or digital nomads	PayPay Bank, Revolut	Quick setup, app-based
Students	Japan Post Bank (ゆうちょ銀行)	Simple, accessible everywhere

7. Digital Alternatives and Fintech Growth

Japan’s banking system is slowly modernizing.
New platforms such as Revolut Japan, Wise Multi-Currency Account, and PayPay Bank are making it easier for foreigners to manage finances without traditional paperwork.

Revolut Japan lets you hold yen and foreign currencies, pay with a card, and send money abroad instantly.
Wise (formerly TransferWise) allows you to receive money internationally using local accounts in multiple countries.

These are especially useful for freelancers, remote workers, or entrepreneurs working across borders.

8. Final Advice for Foreign Residents

Choose wisely: Don’t just pick the biggest bank—pick the one that fits your lifestyle and tech preferences.
Keep documents updated: Notify your bank of any changes to your visa or address.
Try English-friendly options first: Sony Bank, Rakuten Bank, and Japan Post Bank are excellent starting points.
Use digital tools: Pair your bank with Wise or Revolut for global convenience.
Stay organized: Save your banking details, cards, and login info securely to avoid problems.

9. Summary

Opening a bank account in Japan is no longer as daunting as it once was. With growing English support and online options, even newcomers can handle their finances smoothly.
Whether you’re a student, worker, or entrepreneur, understanding the process and preparing the right documents is key to financial independence in Japan.

In short: Japan’s banking system may appear traditional, but with a bit of patience and the right choice of bank, you can easily find a secure and convenient home for your money.