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Banking and Financial Services in Japan: A Complete Guide for Foreign Residents

Shin Housing team

Managing your finances is one of the most important practical matters when moving to Japan. While the process may seem daunting at first, opening a bank account and setting up financial services in Japan is very manageable once you know the steps.

Opening a Bank Account in Japan

A Japanese bank account is essential for receiving your salary, paying rent, and handling everyday transactions. Most landlords and employers require you to have a local account.

When can you open an account?
In 2012, Japan updated its regulations: foreigners can now open a bank account immediately upon registering their address — you no longer need to wait 6 months.

Documents typically required:

  • Residence card (zairyu card) — your most important ID
  • My Number card or notification slip
  • Passport (some banks require this)
  • A Japanese mobile phone number (many banks require this for verification)
  • Initial deposit (varies by bank — some require as little as ¥1)

Major banks for foreigners:

Japan Post Bank (ゆうちょ銀行 / JP Bank)
Often the easiest option for new residents. Post offices are everywhere, and JP Bank is known for being foreigner-friendly. They offer a basic savings account with no monthly fees and an easily obtainable cash card.

Sony Bank
An online bank that supports multiple languages (including English) and offers competitive foreign exchange rates. Excellent for international money transfers. Can be opened fully online.

Shinsei Bank
Foreigner-friendly with English support. Known for low international transfer fees and good online services.

7Bank (Seven Bank)
Operated by 7-Eleven. Easy ATM access throughout Japan. Their app and some services are available in multiple languages.

MUFG, SMBC, Mizuho (Major City Banks)
The three mega-banks. Widely available, but their application process can be stricter for new residents with limited Japanese. Some branches have English support.

ATMs in Japan

Most convenience store ATMs (7-Eleven, FamilyMart, Lawson) accept international cards and operate 24 hours. Japan Post Bank ATMs and some Shinsei Bank ATMs also accept foreign cards. Standard bank branch ATMs often have limited hours and may not accept foreign cards.

International Money Transfers

Sending money home is a common need for foreign residents. Japan offers several options:

Recommended services:

  • Wise (formerly TransferWise): The most popular choice for competitive exchange rates and low fees. Transfers typically arrive in 1–2 business days
  • Revolut: A digital banking app with multi-currency accounts and low transfer fees
  • Japan Post Bank (international remittance): Available at post offices, supports many countries but fees can be higher
  • Western Union / MoneyGram: Available at convenience stores and partner locations
  • Bank wire transfers: Available at all major banks but often have higher fees (¥2,500–¥5,000+ per transfer)

Always compare rates on the day of transfer — exchange rates fluctuate daily.

Credit Cards

Getting a credit card in Japan as a new resident can be challenging since you have no Japanese credit history. However, some options are accessible:

  • Rakuten Card: One of the most foreigner-friendly cards. Can be applied for online with minimal Japanese credit history required
  • EPOS Card: Another accessible option with English support
  • Sony Bank Wallet: A Visa debit card linked to your Sony Bank account — works like a credit card internationally
  • Amazon Mastercard: Available for Amazon Japan customers

Build your credit history by using a card consistently and paying your balance in full monthly.

Pension and Tax Considerations

As a resident of Japan, you are required to enroll in the national pension system (国民年金 or 厚生年金 through your employer). Pension payments are partly tax-deductible.

Japan also has a tax treaty with many countries to avoid double taxation. Consult your country's tax authority or a tax professional in Japan if you earn income from multiple countries.

Useful Financial Apps

  • Money Forward ME: Household budget tracking app with bank account aggregation (some English support)
  • Zaim: Japanese budgeting app
  • Wise: International transfers
  • PayPay / LINE Pay / au Pay: QR code payment apps widely accepted at shops, restaurants, and vending machines across Japan

Getting your finances in order early will reduce stress and help you focus on enjoying your new life in Japan.