Foreign banks in Japan are few and far between and if you plan to do any banking in Japan, it is best to think carefully about what you need from a Japanese bank.

Japan is primarily a cash-based society—you will find that only large department stores accept credit cards. Because of this, it is important to find banks in Japan that are convenient to your location so that you are not accruing too many ATM fees. Fortunately, in Japan, banks have several locations and you should be able to find many branches, even in the countryside.

There are 3 main types of Japanese banks to choose from:

1. International banks in Japan. Located primarily in large cities, you will be able to find some banks in Japan with recognizable names.

2. Japanese banks. From large national banks to smaller regional banks, there are many different banks to choose from. These are ideal for foreigners living in Japan to provide for your day-to-day banking needs.

3. The Japanese post office. Surprisingly, the Japanese post office also offers many banking services. This is a convenient option for many foreigners living in Japan.

Action Steps
The best contacts and resources to help you get it done

Ask for Japanese bank recommendations from ex-patriots living in Japan

For the most up-to-date recommendations of banks in Japan, it is best to turn to the people who are currently living in Japan. They will be more than happy to share their experiences, good and bad.

I recommend: Gaijinpot is a well-known site among foreigners in Japan. They have an active forum that includes a section on banking. Japan-Guide.com is a large information portal for foreigners in Japan. They also have a forum section. You may find banking questions in the living section. If your question isn't already answered, you can go ahead and ask it.

Use Japanese banks for your everyday banking needs

If you are going to be living and working in Japan, it is often best to use Japanese banks. They are often conveniently located and most ATMs accept their cards.

I recommend: The Bank of Tokyo Mitsubishi UFJ bank is one of the largest banks in Japan. It is very popular, along with Mizuho. The Japan post office is one of the best choices for banking. There are many locations all over Japan and usually offers the cheapest way to transfer your money to foreign bank accounts. Japan has a very low savings rate (less than 1%); so many foreigners in Japan choose to transfer their money to a higher interest account.

Use foreign banks in Japan for more complex financial needs

Foreign residents who have hefty investments may prefer to use international banks in Japan. While they are generally located only in large cities like Tokyo or Osaka, they are better suited to handle the needs of foreign customers.

I recommend: Citibank is a well-known American bank that has branches in Japan. The English version of their Japanese site is robust and offers a lot of information about their Japanese banking options. USB, a Swiss bank, also offers international banking in Japan.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  In order to open an account in Japan, banks require you to have a resident alien card and a hanko (official stamp with your name in Japanese). You can purchase a personalized hanko in the stationery section of most department stores.
• •  If you are transferring money to your home country, make sure you keep an eye on the exchange rates. Some times are better than others for transferring money.