Banking in Japan

43 Responses

1. Which bank do you use?
   I have been using SMBC for more than a decade as my primary account, and while its nothing particularly amazing, its a stable bank which doesn’t bother me with too many emails and such.

   I also have a Rakuten bank account which seems much more modern, and its app is pretty good

   I had an account at a super local bank “Tomato ginko” which was more trouble than it was worth, so I closed it.

   Are you happy with your bank?

   I’m a simple man, pretty easy to make me happy. I dont get or send money often, so almost any bank that doesnt make me fill forms or send pointless emails is good enough for me.

   Does your bank offer English-language services?

   I suppose not, but I never bother with the English language services anyway

   How easy is it to access your account online?
   Super easy, Rakuten bank is much better than SMBC

   Do you have to pay to use ATMs?
   No

   Which ATMs can you use?
   SMBC, 7-11 , maybe some other ATMs but I usually use just the SMBC ATM

   Can you withdraw money overseas?
   Never tried it.

   Do you get free domestic bank transfers?
   Yes.

   Any other good or bad points?
   I was reluctant to create a Rakuten bank account since they are known to be pretty ham fisted with emails and campaigns, but it was surprisingly not bad to use. I would recommend it to other people easily.

   1. Just to follow up on a couple of points re SMBC:

      Does your bank offer English-language services?
      I don’t need English-language services either, but a few years ago a teller pulled out an iPad with bilingual display on it when she saw me approaching the counter. At the time I thought it was a clever way to allow any staff member to provide a fairly consistent level of service. I assume it would handle Chinese and Korean too.

      Can you withdraw money overseas?
      A Visa debit card linked to the savings account allows you to make withdrawals overseas.

      Which ATMs can you use?
      Add Lawson to the list of ATMs that can be used (5 free transactions per month with my account).

2. Mizuho Ginko:

   They closed for four days straight this July 13, 14, 15 and 16 and let you know they were doing so. 　Why? I have no clue but you could not do a thing…not online…not at an ATM…nothing. I was prepared for an emergency. I took out 5 grand before it happened.

   Their online site is a typical Japanese online site with hoops and arrows and everything cute happening around you.

   Just finished my last two loans through them. Had to have three meetings and a lot of paperwork to finish the second one. Why? Had to go to three different bureaucratic offices…and pay a ¥2000 stamp to say thank you so much for allowing me to borrow from you and get that big white daikon inserted monthly.

   The third loan finished last Friday. Waiting to hear of the surprises they have installed for me.

   The bank closes at 3 pm which is ridiculous. I guess it is so all the workers…redundant workers can run…fake run wearing slippers behind the shutter and impress their bosses at how cute they look when fake running.

   You can actually listen to them and hear the silly conversations.

   At least at select locations, you can get new bankbooks…yes, most people still use them and it is easy now. Before you had to get a residency paper, show three proofs of ID, pull out that Zaryo card and beg and plead for a new bankbook. Three hours later you got one…if your Inken was the right one. You get to watch a lot of NHK news though while you wait.

   I love all the groveling and fake working. Kind of makes for a nice sociological study. But guess what, I still have to use this bank as it is where my Pension /Nenkin deposits are going. I really feel sorry for anyone going through the pension process and deciding to move back to their home country. You will have to fly back here at least 10 times or so to do redundant paperwork and cry cry cry when they ask you to do it over and over and over again…especially the Jiminhyo…residency paper…because you are no longer a resident here, and they only last three months anyway…so explaining to them you do not live here anymore will make the managers leave those three desks in the back of the room and go hide, then everyone will hiss, suck air, and shuffle around…and then 3 pm…SORRY…come back tomorrow! Whoops! Friday…they mean Monday, as long as it is not a holiday…like Golden Week …oh wow. Sorry for the ramble.

   1. If you move abroad I believe you can get your nenkin sent to an overseas bank 🙂

      1. Yes, you can, but it takes months to set it up for Japan let alone to an overseas area. You keep getting pulled into meeting after meeting and having to submit redundant paperwork. I have been doing it for a year and four months now. God forbid I tell them…by the way, I want it set to a foreign bank.

3. I have a Shinsei account now for years (over a decade for sure) and still use them as my preferred bank. I get up to 5 free ATM transactions a month as a VISA gold cardholder. Nothing to do with having to maintain ¥ 300,000 equivalent in foreign currency. That may be due to my activity with the Shinsei-issued Visa gold card (Aplus) by which I get the 5 transactions (furikomi, etc.) per month as cashback fee-waived. Non-gold members have to pay the per-transaction fee nowadays.

   I also have my monthly social security check from the U.S. deposited into my Shinsei account which is automatically converted into the JPY equivalent. I also have kousei nenkin （厚生年金） as well but am not in the situation of having to have that sent overseas as I reside and use the funds in Japan. That, however, has nothing to do with Shinsei as it goes into one of my other local Japanese bank accounts.

   Going forward, I think banks, in general, have had their heyday. I still use them as an ‘electronic wallet for income deposits, payments, transfer, etc., but not as an investment container to hopefully make money on investments. I feel cryptocurrency as a global financial instrument is where it’s happening. Specifically, XRP (Ripple) increasingly may very well become the ‘Swift’ of the future going forward for international monetary transactions. I also diversify too. For example, I purchase a fixed amount of gold each month automatically through my Tanaka Kikinzoku Account. （田中貴金属）Changing times. Changing circumstances in the financial milieu, business milieu, etc. Cheers,

   1. If you have your US Social Security deposited in a Japanese bank, can’t the Japanese tax people see that and then tax you on it as income?

4. This timing is perfect, I’m also planning to look for options to replace Shinsei. Rakuten sounds good, but I’m wondering if there would be any problems using it as my only Japanese bank.

5. Which bank do you use?

   SMBC Trust Bank – Prestia

   Are you happy with your bank?

   Mostly.

   Does your bank offer English-language services?

   For some services, yes. In person, sometimes it’s a gamble. On the phone, there is usually – but not always – an English language speaker.

   How easy is it to access your account online?

   The banking web site is in English as well. It’s available 24×7 unless there is maintenance.

   Do you have to pay to use ATMs?

   SMBC ATMS are mostly free: there are some odd time windows/scenarios when they’re not. Other ATMS are > ¥300 per transaction.

   Which ATMs can you use?

   SMBC, any in the Plus network, 7-11/7&i, maybe others in a pinch.

   Can you withdraw money overseas?

   Yes, if on the Plus network. I’ve done so in Taiwan, Indonesia, the U.K., and the U.S.

   Do you get free domestic bank transfers?

   I think so.

   Any other good or bad points?

   Prestia, like other banks, have been consolidating and moving locations. My home branch is now far less convenient to access, especially on Fridays and at the end of the month. Bill pay on ATM is all in Japanese: staff have to help to make a payment unless you are proficient.

   They offer foreign fund accounts tied to the main banking account. Foreign bank accounts can be registered for fund transfers from the foreign fund accounts. Standard transfer fee is ¥3500, but there are campaigns from time to time when the fee is waved.

   Foreign transactions have a daily blackout window in the mid afternoon.

   Prestia issues a random number generator for registering accounts and some other activities for some additional security.

   Many actions still require visiting your specific branch and filling out paperwork.

   The Visa credit card they offer has a Japanese-only web site.

   1. Woops!

      I meant to say … “Other ATMS are < ¥300 per transaction.”

   2. SMBC Prestia for me too. The Mulit-market Foreign Currency account allows you to have USD or any other deposited as USD (or other) in your account and you change it to JPY when you like. Which is nice.

      I’ve always been able to get english on the phone.

      Web interface is in english.

6. I have two thirds of my retirement income coming in in dollars from the states to my American Bank account. Have had the same account since working for the state department and can give local phone calls to any base if I really need help. I wish to see the dollar strengthen though for obvious reasons.

   My other third of income is the Japanese pension I have and that goes through Mizuho.

   So in Japan and overseas I tap the American account and also the Japanese account when in Japan. Never use Mizuho from overseas and rarely go online to check it out.

   Each of you will have unique situations.

7. If you really want to retire in Japan…Kill the mortgage. It is a great place to retire. Great place to live. And I love the fact that rainy season is done, the beaches open and the surf getting better.

8. Which bank do you use?
   Aeon Bank

   Are you happy with your bank?
   Yes

   Does your bank offer English-language services?
   Don’t think so.

   How easy is it to access your account online?
   Very easy and the app is very easy to use and track transactions. Can also use your phone to make withdrawals without a card.

   Do you have to pay to use ATMs?
   No, and if you live near a Max Value you have access to an ATM 365 days a year 24 hours a day without a fee. Also can use Japan post and some other banks during business hours without a fee transaction.

   Which ATMs can you use?
   Aeon malls, Japan post, Mizuho bank and depending on your level you can have 5 free transactions from any ATM

   Can you withdraw money overseas?
   Not sure.

   Do you get free domestic bank transfers?
   Up to 5 a month depending on level.

   Any other good or bad points?
   As it is Aeon I think their customer service is very good.

9. I assume most people replying to this live in an urban environment where a plethora of options as far as banks are concerned. I happen to reside in very rural Japan where there are exactly three choices; a regional bank, Yamanashi Chuo Bank which I have had an account at for many years, but would not recommend. Yamanashi Shinyo Kumiai bank which is only good for getting loans if you are a landholding farmer in good standing with your local politicians, i.e. have paid them off recently, and the Japan Post.

   Of the three, only the JP gives any kind of service that would be considered comparable to what you guys get. Free withdraws, ATMs that work even on weekends, English language service. I have never tried to withdraw funds from overseas, but have made many wire transfers both ways and never had a problem. They even have an exchange rate that works the same both ways so I never felt “taken” when sending and receiving overseas transactions.

   I happen to have a lot of money in this bank at this time and have been recently been invited to a seminar where I am told ‘special investment advice’ will be given. mmm?

   1. I presume you could also use the online/new banks like Seven Bank, Aeon, and Rakuten.

      As for the seminar, might be interesting but “beware Greeks bearing gifts”!

10. Yes I have an account with an online bank which I rarely use and crypto currencies are interesting. Both seem like high risk options but, I assumed you were asking about traditional brick and mortar operations.

11. I was curious about “holding over ￥300,000 in foreign currency” thing that you mentioned. I’ve lived here 13 years and I didn’t know that banks could ‘hold’ foreign currency for customers. Could you talk about that some time in a future post? I’ll try to tap the University of Google, but that feels like outsourcing my information quest…..

    1. Hi Jackie

       No great mystery 🙂

       Shinsei (and some other banks) offer ‘multi-currency accounts’ so you can keep your money in yen, dollars, euros, sheckels, whatever. You can move the money between currencies as you like (the bank will likely take a cut of the exchange rate).

       1. Thanks! Do you earn any substantial interest on those funds? Or is it kind of like the waste-of-ink-.02% interest in a traditional (¥ based) savings account?

          1. The latter, of course 😉

       2. Shekels? Shalom! Do you have any connections to get some good knish over here? I got base friends who get me gefilte fish. Smiles I need a real NY Jewish Deli

12. Thanks for starting this thread. I also felt so smug about recommending Shinsei decades ago, and I realize they are now but a shell of their former self. I’ve sort of half moved on.

    Also, I don’t need services in English.

    I’ve moved years ago to Rakuten Bank as my main bank for salary. Rakuten has up to 5 free transfers a month. What’s more, on the app you can program automated monthly transfers. I use one of my 5 free monthly transfers to moved a chunk of money to Shinsei as savings. I realize it isn’t free to withdraw money from Shinsei/combine now, I’m not happy about it, but its for my savings, anyway, and my real countermeasure is not to use cash as much as I can, so in the few cases that I do need to withdraw money from ATM I don’t feel too bad about the ¥180 fee. That being said, if I need to take out a big amount from Shinsei I’m not sure which hoops I’ll need to go through, so I have this flagged as an issue. Instead of using cash, I pay ¥90K annually for the ANA Platinum Card and pay for everything using it and it generates good mileage that I use for foreign trips twice a year. For money transfers to relatives in the Philippines I use Transferwise. For my real estate business I get funding from Suruga Bank. Suruga Bank have given me a full complement of visa cards, ATM cards etc, but I don’t use them at all. In my mind personal finance and business finance is best keep separate so I only look at the totals of the business side to make sure nothing is amiss. Maybe I should check out whether Suruga Bank’s offerings are useful.

    I use Money Forward to give me a consolidated look of all my finances, included bank deposits, securities investments, credit card bills and points, and I customize views so I can see all, just my personal, my personal and business, and other family members’.

    The biggest things I’ve flagged from the thread to explore further are 1) What to do if someone sends me money from abroad, 2) Multicurrency accounts. Currently, if I can help it, any USD monies I need to receive I receive via my spouse’s USD account (Ally Bank). Rakuten Securities have multi-currencies that I use to invest in foreign currency denominated stocks, but I don’t do much of that trading so I haven’t explored the functionality that much.

13. “It’s like they would rather have no customers at all.”

    I’m am convinced this is motto of Japan Business 101. The amount of times I have been so dumb founded by Japanese businesses. I have 12 years if examples that would fill a small book. Two tire stores across the street from each other. That store has this set of tires for 3000 yen less. I ask “can you price match?” No? Okay I’m going over there. “Okay thank you for coming”. I had my eye on a blue mx5 in a used car lot. It was 700,000 the first summer I saw it. Didn’t sell. 600,000 the next summer. You guessed it, 500,000 the next year. I went to the dealer with 450,000 yen in CASH, he would not take a single yen off the price. 500,000 is 500,000. I told him I watched this car drop in price for 3 years never selling. He said, bye thank you for coming. Next year… Sure enough 400,000 the next year. I moved away after that so no idea if it ever sold. The most recent, you will love this one becuase you are the one that got me into LCC phone carries. I left Soft Bank so fast after they charged me 1500 yen for 7 minutes of off network local phone calls on top of my 10,000 yen monthly bill. I went to UQ mobile. They where great. Got a plan that fit my needs for 2000 yen a month for two years. Two years was up. We call them up. They said I have two choices. One was to stay with the current plan, keep my number, but my rate would go UP to 2500 yen and my data would go down 500mb. That’s loyalty right? Or I could get the 2000 yen plan and keep the data amount but get a new number. I said neither of those options where good and I’m going to chance carries if they can’t do better. I kid you not nthe sales lady actually told us “I agree, the best choice would be to leave UQ and choose a new company”. We went to rakeluten mobile, 1500 yen a month and rakuten points bonus. I simply don’t understand how capitalism works in this country. Actually I do. The vast majority of consumers here don’t price match. They don’t do comparisons. They buy things based on name. Is LG TV better and cheaper? Doesn’t matter, this Sony one is Japanese.

    1. I have been here since 1984. You ain’t see nothing yet.

       1. stories please. I would love to know I am not alone in the Twilight Zone of capitalism.

          1. Ok, Rob Here is one. Years back when traveling with a friend and not knowing Japanese at that time, I wanted some crushed ice (KakiGori) without any flavoring. Flavoring makes me thirsty. After doing my best to haggle, and keep pushing the sweet sauces away, I finally got the crushed ice. When I tried to pay, they refused my money. When I finally was able to understand why they said it was service. And finally after figuring that out as to why it was service…because there was no flavor and there was no crushed ice on the menu without flavor.
             After all the struggling with the lingo, an old man came down from a loft and asked me in perfect English if everything was ok…I told him yes and he said he enjoyed hearing me struggle with Japanese. Got to love these people!

14. I have an account in Japan Post-Office since 2007, when I came to Japan as a ryuugakusei. At that time, it was not a bank, I could not make transfer to other bank, etc. Its service still limited until now. But Yucho Ginkou (Japan Post-Office) is the only omnipresent bank service in this country. You may find a post-office with an ATM even in a remote island.

    Recently, I opened an account in Sony Bank and other in SBI investment account. I am trying to use the synergy the synergy of these accounts. I keep my budget for month expenses in Yucho Ginkou (I can get cash anywhere in this country), emergency budget in Sony Bank, and investment (iDeCo and NISA).

15. Totally agree about Shinsei. I’ve just changed to Seven Bank, which seems to offer most of the benefits (English website, free withdrawals, overseas withdrawals) that Shinsei used to, with the added bonus of a debit card.

16. I was a Shinsei customer since 2004, because my language skills were limited at the time (I just arrived!), and they offered a website for banking. A ton of banks didn’t really at that time. Things started going downhill 5 years ago…

    At that time, I finally got my tsushoumei, or as they say, local alias to eliminate some aspects of troublesome gaijin name, like a middle name. I tried to do it properly first by eliminating that bit at home, getting a new passport, getting name in residence card changed, etc… but since I have non-Latin character in my last name, the immigration caught up with it and wanted to transliterate within their stupid rules… so I gave up and got an alias.

    Shinsei wouldn’t let me change my bank account name to alias. Their rules. I was a bit livid. Got Rakuten bank that day. I was already their customer on the securities side (from quite recently). They were doing the right stuff on that side so I was like fuck Shinsei.

    Also no other bank has any problems with aliases on the account name afaik.

    – Which bank do you use?
    I use Rakuten and begrudgingly, I still have to use Shinsei for rent.

    – Are you happy with your bank?
    Very. Modern web interface that actually got a facelift. Every service works, everything can be on the website. The APP works and I can pay some konbini-only bills via the app!. Integrates directly with their securities side.

    I had a small hassle with that, both accounts were registered with the same kana, they still wouldn’t link because “name difference”. A quick email to securities support and the girl OFFERED to fix it for me from their side. 30 minutes later she came back and asked me to click on the link button again. Went through just fine. Great service 🙂

    – Does your bank offer English-language services?
    No, but then again, you don’t really need English for ATM transactions. I really don’t use a bank here for more than getting money, storing money, and occasionally manually transferring it. It’s not rocket science that needs anything more than rikaikun to be able to function.

    And if one needs to push the english button on ATM to withdraw money because he doesn’t know what the kanji is for withdrawal… maybe it’s time to pack up and go home.

    – How easy is it to access your account online?
    Net-only bank so… they’ve made the online access as slick as possible. You can even use ANY hank to stamp auto-withdrawal agreements. I don’t have any though. Credit Cards offer better service and protection. Except for the rent but that was set long time ago and uses… shinsei.

    – Do you have to pay to use ATMs?
    First 7 is free for me. I use maybe once a month if that. Cash sucks, you don’t need cash in Tokyo almost ever. If cash died a fiery death in the hands of our diet, I wouldn’t be happier. Cash is for money launderers and tax evaders.

    – Which ATMs can you use?
    At least any konbini ATM will do. Haven’t been denied yet. Haven’t used bank ones.

    – Can you withdraw money overseas?
    Yes. Prefer CC of course.

    – Do you get free domestic bank transfers?
    3-5 per month I think?

    – Any other good or bad points?
    Didn’t know this was a thing before I left shinsei… when you fill up receiver details on ANY OTHER bank than shinsei, it auto-fills the recipient information from the target bank. As banks should do. The times I’ve cursed and shinsei’s shit interface not doing this and furikomi bouncing… goddammit shinsei.

    Works perfectly with their securities side taking money from your bank account. No need to hedge your buys. No money lying uselessly on your securities account.

17. Just have to say, great discussion. A very educational read.

    We live abroad at the moment, but that will change in about a year. We have used a Shinsei account for 14 years for banking in Japan. I am going to check out Raukuten and Seven Bank.

18. I have used Mizuho for years. Just finished my third loan payment with them. Knocked down a 35 year loan to 26. Feels good.
    I like the bankbook thing. So much easier than going on line. Plus now when you need a new one, you no longer have to go to the original bank you signed up with and use your inken. They have machines that will generate a new book.

19. My contribution does not help with choosing a bank (I’m currently with 77 Bank, so many people in Tohoku will already know enough to avoid it if possible). However, I have 2 requests for further information to add to the final report resulting from this survey.
    (1) In my experience, employers often have their pet bank and oblige you to open an account there to receive your salary. Does anyone have experience of transferring money easily on a monthly basis from one Japanese bank to another? (In other words, standing orders from one bank to another – from your compulsory “pet bank” to the bank you prefer to use).
    (2) If you have your own company (個人企業、合同会社, etc.), which bank do you recommend for company business? Which credit card do you recommend for dealing with business expenses?

    1. I just take it out in cash the day I get paid and put it straight in my other bank by hand. Old school 🙂

       The other questions are good but might be a different blog post (or a thread in the forum!).

20. My place of employment allowed me to change the so called pet bank. Needed to due so due to a divorce. The business paying you should have no issue putting your pay where you want. It is a simple form.
    It should not be as though it is a scalding hot Tako Yaki in their mouths.

21. Which bank do you use?
    Seven Bank

    Are you happy with your bank?
    Yes

    Does your bank offer English-language services?
    Yes

    How easy is it to access your account online?
    Very – there is a phone app and the website is simple to use

    Do you have to pay to use ATMs?
    Free at 7-11s and partners between 7 and 7pm
    https://www.sevenbank.co.jp/english/personal/netbank/know/fee/

    Which ATMs can you use?
    Most of them – have found you can’t pay in at Lawsons but that seems to be the only drawback (https://www.sevenbank.co.jp/english/personal/atm/)

    Can you withdraw money overseas?
    Yes – it’s a visa debit card

    Do you get free domestic bank transfers?
    Nope

    Any other good or bad points?
    Visa Debit card and a good smartphone app, the sheer number of 7-11s about means ATMs always about and open and minimal hassle in getting it issued

22. Totally agree with you. While Shinsei can appear good in theory with all the English services, in practice they’re a disaster. They took over Lloyds Bank’s super international transfer service in the mid-naughts and proceeded to systematically ruin it. I was so glad when Transferwise came on the scene for so many reasons, like that they don’t need faxes to do things like update a land address. Shinsei’s English website is copyright 2001, and doesn’t seem to have been updated much since then.

    I signed up for a regular account a few years back because I have some international clients and it seemed like a good option for international transfers. I’ve had so many hassles with these guys dealing over the international wire transfers. If one character is misplaced they reject the transfer, and don’t even tell you. And when transfers do come through (or deposits are made), they won’t send an email notification. Even though they send notifications for everything else under the sun. What’s more important than when a deposit’s made?! Gee-whiz… Sorry to unload, but these guys are driving me nuts. Basically, it looks like they inherited everything from Lloyds back in the day and are just going through the motions. They can’t fire all that staff, but they certainly don’t care about their international operation.

    I look forward to reading about other people’s options. Thanks for the post!

23. “If one character is misplaced they reject the transfer, and don’t even tell you.”

    That sounds typical–of my local, regional bank when doing domestic transfers…! 😉

    I wonder if shinsei’s banking competition does anything different on this point?

24. If you have your US Social Security deposited in a Japanese bank, can’t the Japanese tax people see that and then tax you on it as income?

    1. Uh…, if you’re not declaring it in japan, you certainly should be! And if you’re collecting a japanese (or other non-US) pension, SS should know about that, too–to adjust for and eliminate windfalls.

       Purposely hiding that is tax and/or social security fraud.

       1. Exactly. That is why I posted it. All income from anywhere around the globe needs to be reported to the American IRS even if you are not American but the income is derived from America or an American legal business.

          By the way, I am not collecting US Social Security, but fully know of the WEP situation. WEP will knock off about $450 off of a person’s legally and earned SS but will never take more than fifty percent if the amount is rather low.

          US Social Security is and will always be taxed. That will more than likely offset any Japanese tax on it as through agreements on double taxation, but it will cost you more as your accountant has to create another set of crazy forms for presentation and then you have to translate them for the Japanese tax offices which will cost you a pretty penny as well.

25. Just to play devil’s advocate, one good thing about Shinsei is that they are hopeless at enforcing the “no account while non-resident” rule if you decide to leave one day. And you can then continue to use the telephone service for transfers overseas/etc, or if you need some money in a bank account for a trip to Japan, want to buy something in Japan/etc.

    Just make sure you can receive physical mail, at a friend/relative’s place as they send you something once a year and will lock your account if it gets sent back.

    So don’t close your account entirely. Just set the balance to zero and leave it dormant.

    1. “… that they are hopeless at enforcing the “no account while non-resident” rule if you decide to leave one day.”

       Not necessarily. The reason Shinsei sends periodic physical mail to you is to check whether or not the address is still valid. One or two returned mails and you can be sure their compliance department (the same dept. responsible for most of their FSA-first customer-last policies) will investigate.

       I still use Shinsei as my main bank and keep my Platinum status, but I no longer recommend it to other people. The cancellation of overseas ATM service was the kicker for me. For me, Seven Bank is the best bank that provides full service in English. No frills, but it works. Cirrus comparability for overseas ATM use too.