Banking

Having a Japanese bank account is essential for long-term residents. Employers typically require direct deposit, landlords demand automatic rent transfers, and many service providers need local accounts for automatic payments. A Japanese account also simplifies international transfers and utility bill payments.

Requirements for a bank account

Requirements differ from bank to bank, these are most of the time mandatory

  • You must be a resident of Japan.
  • You must have resided in Japan for over 6 months or more, or working in a company with a office located in Japan. This will exclude part-time jobs.
  • You must own a personal Japanese telephone number.

These documents may be required depending on the bank:

  • Residence Card (Zairyū / 在留カード)
  • My Number Card (Mainanbaakaado / マイナンバーカード)
  • Resident Record (Jūminhyō / 住民票)
  • Personal Seal (Inkan / 印鑑)
  • Proof of Employment

Types of Bank Accounts Available

  • General deposit accounts (Futsu Yokin / 普通預金) are the most common type for everyday banking. These interest-bearing accounts allow easy access to your funds with minimal restrictions.
  • Savings accounts offer higher interest rates but may require advance notice for withdrawals.
  • Time deposit accounts lock your money for fixed periods at better interest rates.
  • Current accounts (Toza Yokin / 当座預金) primarily serve businesses and allow check usage.
  • Foreign currency accounts (Gaika Yokin / 外貨預金) let you hold and transact in currencies other than Japanese yen.

Neobanks

Neobanks are digital-only financial institutions with no physical branches. They operate entirely through mobile apps and websites, offering streamlined services at reduced costs. Unlike traditional banks, neobanks lack a full "banking license" but operate under "Payment Licenses" and "Electronic Money Licenses." This means they cannot issue loans or grants but can manage transfers and issue cards. Neobanks hold customer funds in separate accounts with licensed banks, ensuring deposit protection.

Key advantages include lower or zero maintenance fees, faster account opening (often minutes instead of days), real-time spending notifications, budgeting tools, and multi-currency capabilities. Many offer debit cards for international use without hidden fees. Disadvantages include limited in-person support, potentially fewer financial products, and language barriers at some platforms.

Banks with Strong English Support

Seven Bank offers a fully English online application process with fast processing, typically taking 10-12 days from application to card delivery. You can upload proof of employment during the initial application, and the process is straightforward with minimal complications. The bank accepts both Residence Card (Zairyū / 在留カード) and Resident Record (Jūminhyō / 住民票) as documentation. However, Seven Bank only issues JCB debit cards, which limits your options if you need Visa or Mastercard.

SMBC Olive combines debit and credit functionality on one card. In-person applications with an employment contract may be approved even if you haven't resided in Japan for over six months, as staff verify employment directly with your employer. Processing takes 7-10 days once approved, and you'll receive a debit-only card even if the credit application is rejected. The downside is that online applications from those who haven't resided in Japan for over six months are typically rejected initially, requiring an in-person branch visit. Credit applications may also be denied, though your debit account will still work normally.

SBI Shinsei Bank specifically targets foreign customers and offers English support, accepting certificates of employment, business cards, or company IDs as proof of employment. In-person applications can be completed quickly. Unfortunately, English support has diminished in recent years, and the bank requires formal employment documentation with reliability that varies by branch.

Japan Post Bank requires no employment verification and only needs basic documents like your Residence Card (Zairyū / 在留カード), making it accessible if you lack employment documentation. However, the interface is Japanese-only, and the account features and online banking capabilities are quite limited. Previous account holders may encounter issues with online applications, and it's generally considered the least convenient option for long-term use.

Rakuten Bank offers an online application and accepts various forms of documentation, but the mobile app has persistent camera focus issues when photographing documents. The bank requires proof of employment and involves multiple communications via phone and mail, with a slow verification process overall, making it more cumbersome than alternatives.

Sony Bank previously offered English support and quick processing, but as of mid-2024, the bank discontinued English account opening support and its English application platform is no longer available. It requires either a driving license or MyNumber Card with no alternatives accepted, and will not accept employment contracts as proof of employment, making it no longer a viable option for most new foreign residents.

Practical Banking Tips

  • Remember that traditional banks typically operate 9am to 3pm on weekdays. Most close weekends and national holidays. ATMs offer extended hours, with many now operating 24/7. Plan withdrawals accordingly to avoid fees charged outside business hours.
  • Update your address with your bank immediately after moving. Japanese banks communicate important notices by mail, so maintaining current address information is critical. Failure to update may result in blocked accounts or missed communications.
  • Online banking access simplifies account management from anywhere. Register for internet banking during account opening or shortly after. This service allows transfers, balance checks, and payment processing without branch visits.
  • If unfamiliar with Japanese, visit larger branches in major cities or areas with significant foreign populations. Staff training and English-speaking representatives concentrate at these locations. Bringing a Japanese-speaking colleague or friend to your first visit also helps clarify complex procedures.
  • Consider opening only one primary account. Multiple accounts create unnecessary complexity and management burden. Select carefully based on your specific needs rather than opening multiple accounts.

Seven Bank

Pros:

  • Fully English online application available
  • Proof of employment can be uploaded during initial application
  • Fast processing: typically 10-12 days from application to card delivery
  • Simple, straightforward process with minimal complications
  • Accepts Residence Card (Zairyū / 在留カード) and Resident Record (Jūminhyō / 住民票) as documentation

Cons:

  • Only issues JCB debit cards (not Visa or Mastercard)

SMBC Olive

Pros:

  • Both debit and credit functionality available on one card
  • In-person visits with employment contract often result in approval despite 6-month rule
  • Staff will contact your employer directly to verify employment status
  • Debit-only card is issued even if credit application is rejected
  • Processing typically takes 7-10 days once approved

Cons:

  • Online applications under 6 months typically rejected initially
  • Requires in-person visit to a branch for approval under 6-month mark
  • Credit mode applications may be rejected; debit-only accounts still function normally

SBI Shinsei Bank

Pros:

  • Specifically targets foreign customers
  • Offers English support
  • Accepts certificate of employment, business cards, or company ID as proof
  • In-person applications can be completed quickly

Cons:

  • English support has been reduced in recent years
  • Requires formal proof of employment documentation
  • Reliability varies by branch

Japan Post Bank (Yucho)

Pros:

  • No employment verification required
  • Only basic documents needed (Residence Card)
  • Accessible option for those without employment documentation

Cons:

  • Japanese-only interface
  • Restricted account features and functionality
  • Limited online banking capabilities
  • Previous account holders may encounter online application issues
  • Generally considered the least convenient long-term option

Rakuten Bank

Pros:

  • Online application available
  • Accepts various forms of documentation

Cons:

  • Mobile app has persistent camera focus issues when photographing documents
  • Requires proof of employment
  • Multiple back-and-forth communications via phone and mail
  • Slow verification process
  • More cumbersome than alternatives

Sony Bank

Pros:

  • Previously offered English support and quick processing

Cons:

  • Discontinued English account opening support as of mid-2024
  • English application platform no longer available
  • Requires driving license or MyNumber Card (no alternatives)
  • Will not accept employment contracts as proof of employment
  • No longer a viable option for most new foreign residents

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