Handling Money & Opening A Bank Account In Japan

Introduction
Hello, so I just opened a bank account at UFJ (三菱東京ＵＦＪ) and I thought my experience might help those who are coming to Japan.  I am only studying in Japan for a year, and I selected my bank based on the fact that it is right next to my train station and I know they have online banking.  I could of tried to do more research, but my Japanese level would of made it a headache.  If you are studying abroad, and lucky, your university might have an info session to help you fill out paperwork.  I attended that meeting, but UFJ was closer to me than the bank they were setting us up with.  They have students who are in dorms or at home stays.  Here is another good post about opening an account, but it didn't really do much for my situation. 

General Info About Money
Japan is a cashed based society, so do not expect to come here with just a credit card.  (I also recommend bringing a wallet that has a pocket for change because they have $5 coins here.)  Places that accept credit cards are not that common.  Hotels that cater to foreign clients and major trains stations might.  (If you want to use your card at a train station you can't go to the ticket machines.  You will need to talk to someone who will not likely know English so know what train line and stops you want.) Therefore, I highly recommend exchanging money ahead of time.  You can either do this at your local bank (it might take time if they do not have yen there), at the airport, or you can try to do it at a Japanese bank.  I've heard that travelers checks are good and bad from different people.  Here is a website that gives you an idea what the various debit card foreign transaction fees, but it is a little dated.  Here is a video from someone living in Japan who talks about dealing with money.  Make sure to call your bank and inform that you will abroad for your debit and credit cards.  I also recommend asking them about international fees so you will have the most up to date information.  From the research I did before the only credit card that doesn't have international fees is Capital One.  Now there is no longer a Capital One debit card, so I have an ING debit card.  When I talked to ING on the phone, since they are now under Capital One, they might change their policies to match the old Capital One debit card.  They have a 2% fee, so when I take money out from an ATM there is that fee plus the ATM fee.  ATMs that work with American credit cards are common and outside convenience stores (which are everywhere).  7-11 has like a $2 ATM fee for any debit card, even Japanese ones.  Even if your bank does have ATMs in Japan, like Citibank, they probably still have ATM fees.  


Overview of My Game-Plan for Money in Japan
1. Get Capital One credit card
2. Inform your bank or credit/ debit card companies that you will be abroad
3. Ask about using said cards abroad and about wiring fees or setting up an external link
4. Bring plenty of yen

• If you are spending a year or more in Japan and want to open a bank account you should bring a lot of cash in yen (or exchange at the airport).  Getting a cellphone, food, and school fees will eat through it and you need enough to last till you get a bank account.  If I need more cash before I have my bank stuff worked out I have a debit card.

5.  Order an Inkan (印鑑)

• My university helped us order them, so I can't help you there.  You will likely need one, but according to some (see link in introduction) you won't need one to open an account with certain locations.  

UPDATE: The recommendations for where to look for ATMs that accept foreign debit cards were 7-11s and post offices.  I've heard from multiple sources that 7-11s take foreign debit cards, but my experience today suggested otherwise.  I first went to two Lawsons, which are common near near my university but no luck.  They do have an English option, so once you get a cash card from a Japanese bank that will be helpful.  Then I tried a 7-11 near my train station and it had directions in English and Japanese as the normal setting, but no luck with my card.  I then tried two K convenience stores which are on my way home from the train station.  They didn't have an English option so that gave me a hint that it wouldn't work there either.  Here is a website where you can search for 7-11 ATMs in your area.  I tried the one closest to my home, but it didn't work.  You'll probably have better luck in downtown areas or cities with more internationals.  (I was in Nagoya.)  UPDATE: 7-11 is no longer accepting Master Cards.  

6. Set up a bank account

Opening an Account (at UFJ)
I brought my inkan, my residence card (I also brought my passport and student ID as back ups), and 1000yen (about $10) to put into the account.  I told an attendant that I wanted to open an account and she led me to a waiting area (and I got a number).  The ideal is that the bank does online banking and you can link it to an external account/ online transfer.  Online transfers don't have the fees that wiring money does.  The people at the bank didn't know English so I prepared a small list of vocab that I might need.  Here it is:

• I want to open a regular bank account. = ふつよきん(regular-type bank account)のこうざ(account)を作りたいです。[futsuyokin no kouza wo tsukuritai desu.]
• I want to do online banking. = オンラインバンキング(online banking)をしたいです。[onrain bankingu wo shitai desu.] 
• *Can I do electric transfer? = でんしふりこみ(electric transfer)ができますか。[denshi furikomi ga dekimasu ka.]
• Can I see an explanation in English? = えいごでせつめいがみれますか。[eigo de setsumei ga miremasu ka.] 

*I want to be able to set up a link to external account, and this is what my host mom suggested.  But be aware that EFT is a broad term that also includes wiring (which has unwanted fees).  I guess I will find out when I figure out how to work their online banking system.

They help you through the paper work.  You should try to write your address in Japanese.  Other information you'll need to know is your birthday but with the Heisei year, then your name in katakana and in English (the same way it appears on your residence card and in all capitals).  They will fill out the rest.  Pretty simple.  Then they will send you bank to the waiting area till they have your bank book ready.  They will mail you your cash card and online banking card, which will arrive in about a week.