Tokyo

1. Types of Banks in Tokyo

Tokyo, as Japan’s financial hub, offers a variety of banking options. These include:

a. Domestic Banks

• Mega Banks: These are large, nationwide banks with extensive branch and ATM networks. Examples include:
  • Mitsubishi UFJ Bank (MUFG)
  • Sumitomo Mitsui Banking Corporation (SMBC)
  • Mizuho Bank
• Regional Banks: Smaller banks that primarily serve specific regions or prefectures. While they may have fewer branches in Tokyo, they are still an option for residents.
• Japan Post Bank: A government-affiliated bank with branches and ATMs in nearly every post office. It’s highly accessible and foreigner-friendly.

b. International Banks

• Several global banks operate in Tokyo, such as Citibank (now part of SMBC Trust Bank), HSBC, and Standard Chartered. These banks cater to expatriates and businesses with international banking needs.
• International banks often provide English-language services, but their branch networks are limited compared to domestic banks.

c. Online-Only Banks

• Online banks like Rakuten Bank and Sony Bank are gaining popularity. They offer competitive fees and convenient online services but lack physical branches.

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2. Opening a Bank Account

Opening a bank account in Tokyo is straightforward but requires specific documentation. Here’s what you need to know:

a. Required Documents

1. Residence Card (在留カード, Zairyū Kādo): Proof of your legal status in Japan.
2. My Number Card (マイナンバーカード): A 12-digit personal identification number issued to residents.
3. Passport: For identity verification.
4. Proof of Address: Utility bills or a certificate of residence (住民票, Jūminhyō) from your local ward office.
5. Hanko (Personal Seal): While some banks now accept signatures, many still require a hanko for official documents.

b. Procedure

1. Visit a bank branch (or apply online for certain banks).
2. Fill out the application form (available in Japanese; some banks offer English assistance).
3. Submit the required documents.
4. Wait for your bank card and passbook (通帳, Tsūchō) to arrive by mail, which usually takes 1-2 weeks.

c. Tips

• Some banks, like Shinsei Bank and Prestia (SMBC Trust Bank), are more foreigner-friendly and offer English-language services.
• You may need a Japanese phone number to complete the application process.

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3. ATM Access

Tokyo has an extensive network of ATMs, but there are some nuances to be aware of:

a. Availability

• ATMs are widely available in convenience stores (7-Eleven, Lawson, FamilyMart), train stations, and bank branches.
• Japan Post Bank ATMs are particularly accessible and support international cards.

b. International Card Compatibility

• Not all ATMs accept foreign-issued cards. Look for ATMs at 7-Eleven, Japan Post Bank, or Citibank/Prestia, which typically support Visa, Mastercard, and other international networks.

c. Operating Hours

• Some ATMs, especially in bank branches, have limited hours (e.g., 9:00 AM to 5:00 PM). However, convenience store ATMs operate 24/7.

d. Fees

• ATM fees vary depending on the bank, time of day, and whether you’re using a domestic or international card. Expect fees of ¥100-¥300 per transaction for international cards.

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4. Common Payment Methods

Japan is transitioning from a cash-based society to embracing digital payments, but cash still plays a significant role in daily life.

a. Cash

• Usage: Cash is widely accepted, especially in smaller shops, restaurants, and rural areas.
• ATMs: Ensure you have access to cash, as some establishments may not accept cards.
• Cultural Note: Always place cash in the provided tray at the register instead of handing it directly to the cashier.

b. Credit and Debit Cards

• Acceptance: Cards are increasingly accepted in Tokyo, especially in department stores, chain restaurants, and tourist areas. Visa, Mastercard, and JCB are the most commonly accepted.
• Tips: Always carry some cash as a backup, as smaller businesses may not accept cards.

c. Mobile Payment Apps

• Popular Apps: Suica, Pasmo, PayPay, Line Pay, Rakuten Pay, and Apple Pay.
• Usage: Mobile payments are widely accepted in convenience stores, vending machines, and public transportation.
• Setup: You’ll need a Japanese bank account or credit card to link to most apps.

d. IC Cards

• Prepaid IC cards like Suica and Pasmo are commonly used for transportation but can also be used for small purchases at convenience stores, vending machines, and some shops.

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5. Transaction Fees

• Bank Transfers: Domestic bank transfers (振込, Furikomi) typically cost ¥200-¥500, depending on the bank and transfer method (online vs. in-branch).
• Currency Exchange: Banks and currency exchange counters charge a fee for converting foreign currency. Rates at airport counters are usually less favorable.
• International Transfers: Fees for sending money abroad can be high (¥2,000-¥5,000 per transaction). Services like Wise (formerly TransferWise) or PayPal may offer lower fees.

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6. Cultural Considerations Related to Payments

• Cash Etiquette: Present cash neatly and use the provided tray at the register. Crumpled bills or loose coins may be considered impolite.
• Tipping: Tipping is not customary in Japan and may even be considered rude. Exceptional service is expected as part of the culture.
• Exact Change: Japanese people often prefer to pay with exact change, so carrying coins is common.
• Receipts: Always take your receipt, as it’s considered polite and practical for record-keeping.

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7. Other Helpful Information

a. Language Barrier

• Most banking services are conducted in Japanese. If you’re not fluent, consider using banks like Shinsei Bank or Prestia, which offer English support.
• ATMs often have an English-language option, especially those in convenience stores.

b. Tax-Free Shopping

• When shopping as a tourist, you can use your passport to make tax-free purchases at participating stores. Payment can be made in cash or by card.

c. Emergency Funds

• Keep some cash on hand for emergencies, as natural disasters (e.g., earthquakes) can disrupt electronic payment systems.

d. Budgeting Apps

• Consider using budgeting apps like Money Forward or Zaim to track your expenses. These apps often integrate with Japanese bank accounts.

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Conclusion

Banking and payments in Tokyo are a mix of traditional and modern systems. While cash remains king in many situations, the city is rapidly adopting digital payment methods. By understanding the local banking options, payment methods, and cultural nuances, you’ll be well-prepared to manage your finances in Tokyo. If you’re staying long-term, opening a Japanese bank account will make transactions smoother, but always carry some cash for convenience.