Banks vs. Post Office - where to put your hard earned yen

For banking, some people swear by banks while others solely utilize post offices. In bigger cities, there are more branch offices of a bank than post offices, while in other places the post office may be the only place to do your banking. In general, post offices offer slightly higher interest rates and offer a nation-wide banking system. Which service you use depends on your daily needs.

Regular banks

Banks in Japan offer little or no interest so most JETs send their extra money home or invest their money elsewhere. However Japanese bank accounts are handy for paying utilities, transferring money domestically and using the ATM (Automatic Teller Machine). Generally, banks are open Monday to Friday 9:00am to 3:00pm, and are closed on all public holidays and also over the New Year's holiday period.

Opening an Account

For banks, there are two types of accounts:
- Ordinary Deposit (futsu yokin 普通預金) - Withdrawals and deposits available at any time in banking hours.
- Fixed Term (teiki yokin 定期預金) - Deposit term is fixed, no withdrawals or deposits until maturity. More interest than an Ordinary Deposit.
Other kinds of accounts are available at different banks. Personal checks are not common in Japan and have high service charges.

To open a bank account you require:
- Identification (Alien Registration Certificate, National Health Insurance Certificate or passport)
- Hanko (also called inkan) - This is commonly used in place of a signature.

Bank Transfers

These are common ways to pay accounts in Japan. They are in three forms: automatic transfers, on request and international.　

Automatic Transfers (jido furikomi 自動振込)
This is a hassle free way of taking care of many accounts. They are used to pay regular accounts such as telephone, rent, gas and electricity. To set them up, you need to complete a form from the company you wish to transfer the money to and hand it over to the staff at your bank. The forms are all in Japanese but ask your supervisor to help you. With some banks, each month you will receive notification, usually in the from of a postcard, of the amount of the transfer. With other banks, the transfer appears on your bank book. For most utility companies, there is no service charge for these transfers.

(Request) Transfers (furikomi 振込)
You do not need a bank account to use this. You simply take to the bank the information of the account to which you wish to transfer money (usually the account number and the name of its bank and the account's name and address), complete a form with the details and the bank does the rest. The transfers can be processed by mail or by telegraph (telegraph is faster but costs a bit more). There is a service charge of \100-\800, depending on the bank, the amount deposited, or the time it takes to complete the transfer. 　
From time to time you may need to use this kind of money transfer to pay for JET seminars. You will be provided with the details of the account you have to transfer the funds to, and most likely the school office will help you.

International Transfers (kokusai sokin 国際送金)
These allow you to transfer money to another country. The cost can be quite high and so few JETs use this method of transferring money. If you do try it, smaller branch offices will probably have to consult books on how to do it. For Hokkoku Bank, a mail transfer to the U.S. (futsu sokin 普通 送金) costs \2,500 while a telegraphic transfer (denshin sokin 電信送金) costs \7,000.

Currency Exchange (Tsuka Ryogae 通過両替)
Banks which can change money usually display a sign outside by their door. At these banks you can also buy travelers’ checks quite easily. Changing money or getting traveler's check in foreign currency outside Kanazawa can take up to three days. In this respect, banks here have not become internationalized yet.

Credit Cards (Kurejitto Kaado クレジットカード)

Japanese banks require a guarantor before issuing a credit card to a foreigner. Host institutions have been known to act as guarantors for JETs. However, as this does involve some risk to the host institution, don't expect it.

DC Credit Card company have issued Visa and Mastercards to JET Participants. Have your supervisor ring them up and request an application form for you (Osaka office Tel: 06-6532-3661) fill in the forms and wish for the best. They'll do their best to issue you with a card relatively quickly and painlessly. At least two Ishikawa JETs have been successful with applications. A copy of your Alien Registration Card will be requested. There is a small annual fee (amount differs depending on which type of card you select).

As for using the card, it is a different system to what we have back in our countries. You will usually pay for your monthly purchases by direct debit from your bank account in full. When you pay for an item using your card the clerk will ask you if you want your card debited once only. You can opt to split the payment over two or maybe three months in equal amounts. The final alternative is to pay using "revolving payment". It's about the most complicated thing you will ever come face to face with. You pay 10% of the total amount of the product per month until you have paid half of the total cost after which you pay 5% plus interest until the total is paid. You can alternatively choose to pay off more money by depositing at an ATM. The system is very different but the benefit is that you don't have to send money home to pay off the card each month, your card never gets refused AND you can draw money from the card both abroad AND at most ATM machines in Japan.

Bank Branch Offices

Many banks in Japan are regional and do not have branches all over the country. However, you should be able to use your ATM card to withdrawal money from ATMs of other banks. These transactions will cost \100-\300.

Many JETs use Hokkoku (北國 - the green bank), Hokuriku (北陸 - the red bank), Ishikawa (石川 - the red Bank with the initial I.B.) or Noto-Shin (のとしん - the carrot bank) to do their banking because they have a large number of branches within the prefecture.

For information in English on services offered by the post office, the International Postal Research Center has recently published an excellent booklet (titled "Post Office Guide") on this topic. You can pick up a copy at any general post office. For further information in English, call the Research Center locally at (0762)62-2325; or (03)5472-5851.

Post office banking has all the advantages of a bank plus slightly better interest rates, branches all over the country and slightly longer hours.

An ordinary deposit account (tsujo chokin 通常貯金) is the most commonly used account. Depositors can deposit or withdraw any amount (minimum \10) at any post office. If depositors use a Sogo (integrated) account passbook (sogo tsucho 総合通帳), they can take advantage of all on-line services.

Postal Account

Opening an account (Ordinary Deposit)
Opening an account is fairly straight-forward. Anyone can open a postal deposit account. Take the money to be deposited (more than \10) and your hanko (although a signature is also acceptable) to a post office during business hours, and you can open an account immediately. A cash card for use at ATMs is available on request. A card and passbook will be sent to you within a week by registered mail.

Closing an account
Take the passbook, your card and your seal to the post office and the account can be closed immediately.

Lost passbooks and cards
When a passbook or the card is lost or stolen, please inform the post office and your local police station.

A passbook or cash card will be reissued if you make a request in writing. You must fill in the reissue request form for a passbook, etc. Information required is the account number of the lost or stolen passbook or cash card and your name and address. You must also imprint on the form the seal that you used to open the account.

Sending and transferring money via the post office

Money Transfers (Domestic)
You can set up automatic or on request transfers from a post office account just as you can from a bank account. You can also transfer money through the post office without an account by using an automatic debit transfer (Jido haraikomi 自動払込). Public utility charges can be automatically transferred from an ordinary deposit account to a payee's postal giro account.

Domestic Postal Giro (Yubin Furikae　郵便振替)
You can also use domestic postal giro to make payments. This system is utilized to make remittances or payments when the remitter and the payee both have giro accounts or when either of them has a giro account. There are three methods, in-payments (haraikomi 払込), out-payments (haraidashi 払い出し) and giro transfers (furikae 振替), each of which can be processed by mail or by telegraph. International remittances can only be sent from main post offices.

- In-payments : made by those who do not have an account to those who have one. Giro transfers are used where both parties have accounts. In this case remittance is by automatic transfer.
- Out-payments: used by account holders to withdraw funds from their accounts to remit to payees who do not have accounts. Accounts you can transfer to are listed in a guide available from the Post Office. For more details, call the information line on 03-5472-5851.

Domestic Postal Money Orders (Yubin Kawase 郵便為替)
In addition there is also a system of Domestic postal money orders. There are three types of money order: ordinary money orders (futsu kawase 普通 為替), telegraphic money orders (denshin kawase 電信為替) and postal orders (teigaku kogawase　定額小為替).

Domestic Cash Registration Envelope (Genkin Kakitome Futo 現金書留封筒)
One of the most popular methods for sending money domestically is the cash registration envelope. This is an envelope available from the post office for \20 and is especially designed for sending cash. The envelope is sent to the recipient as registered mail, with postal charge starting at \420.

International Postal Remittances (Kokusai Soukin 国際送金)

[Note]: Money cannot be sent to New Zealand using this method. Kiwis usually send money home through a bank. Money orders can be air mailed by the post office to the payee's address. Remittances along with short messages can be made to most countries. These services are only available from post offices which provide delivery services. In Kanazawa, this includes the Kanazawa Chuo (Central) Post Office (金沢中央郵便局) and Kanazawa Minami (South) Post Office (金沢南郵便局).

International Debit Card (A JETs advice)

Probably the best and cheapest way to send money home. Open a Postal Savings account and get a VISA or MC debit/credit card (must apply for this after they’ve issued you a Post Office ATM card). Request that 2 cards be sent to you and send one home to someone you trust (unscrupulous family members are probably not a good idea). This person can then withdraw money from your account via ATM and it costs about 300 yen each time. Not only is this method cheap but you receive really good exchange rates.

Currency
Usually the currency sent is the one used in the country of destination. The remittance, which is paid in Japanese yen, is calculated in the foreign currency based on the exchange rate on the remittance date. The payee will receive the remittance amount in the currency of his or her country.

Time and Cost
To Australia and Canada it takes about three weeks. To the U.S.A., Europe and the U.K. it takes only six to ten days. The service charges are:
￥100,000 and under ￥1000
￥100,000 to 200,000 ￥1,500
￥200,000 to 500,000 ￥2,000
For amounts over ￥500,000, and additional ￥500 is charged for every ￥500,000 deposited.
For remittances to Australia there is an additional charge of ten dollars payable in Australia for the service.

Alternative Service - International Giro Transfer

You can use giro transfer from your giro Account to the payees account. Handling charges are fixed at \400 regardless of the amount, however this service is available to a limited number of countries. For countries participating on the JET Programme, this service is available to the U.K, Germany, Spain and France. Highly recommended for British and European JETs. You need a giro account in your own country, someone can open one for you. It takes about 5-7 days for the money to arrive. Ask for a furikae koza at the post office.

Please note that Lloyds Bank in Tokyo offers an international transfer service using a furikomi card for 2,000 yen per transaction (beware of extra charges that are sometimes levied by YOUR bank at home and Lloyds bank in the country that the money is sent). They can have money transferred in a day, and have a pretty good exchange rate. For more details call 03-3589-7745 or fax 03-3589-7722.

(キャシュ・カード　kyashu kaado)

These are usually automatically issued when you open a new account at a bank or post office. They can be used at any of the ATMs of your bank usually for free of charge between 09:00 to 18:00 on weekdays and on Saturday mornings at more conservative branches, while many are open from 9:00 - 19:00 and a very limited number from 7:00 - 21:00. The ATM card can also be used in other bank's machines in Japan for a small service fee (\100-\300).

Japanese banking institutions have not entered the age of 24-hour banking. Many banks open at 09:00 and close at 15:00, with ATMs closing by 18:00pm or 19:00pm on weekdays on Saturday afternoons, Sundays, public holidays and the New Year period. If an ATM is open during these times, a service charge of \100 to \300 per transaction is charged.

You can do many different types of transactions with the ATMs. Even with limited Japanese ability, you should be able to deposit and withdraw money, and update your passbook.

Using an ATM

Key ATM Commands in Kanji
Withdrawal 引出し (hikidashi)
Deposit 入金 (nyukin)、預金 (yokin)、預入れ (azukeire)
Passbook Update 通帳記入 (tsucho-kinyu)
Balance Update 残高照会 (zandaka-shokai)
Debit Transfer 振込み (furikomi)
(For a debit transfer, you'll either need a special debit card from the bank for the account that you want to deposit money to or the account number itself)
Confirm Transaction 確認 (kakunin) (usually green button)
Cancel Transaction 取消 (torikeshi) (usually red button)
Correction 訂正 (teisei) (usually yellow button)

10,000 - (万) 1000 - (千) Yen (\) - (円)

How to Withdraw Money (procedure may differ for different ATMs)
1. Press the withdrawal button
2. Insert ATM card and if you wish, your passbook into appropriate slots.
3. Press your 4-digit entry code. May have to press confirm button afterwards.
4. Let's say you want to withdrawal \52,000. Press 5-2-0-0-0-(円) or 5-(万)-2-(千)-(円).
Press confirm, cancel, or correction button afterwards.
5. Take out the card, money, transaction sheet, (and if applicable) the passbook.

[Note]: For some ATMs, the machine will be automatically set to withdrawal function if you insert your ATM Card without selecting the type of transaction you desire first.

How to deposit money:
1. Press the deposit button.
2. Insert the ATM card and if you wish, your passbook. You may or may not have to punch in your 4-digit entry code.
3. Put the money into the appropriate slot (the machine will indicate which one).
Make sure that the bills' edges are not folded up.
4. Once the machine counts the money, it will display the amount deposited. Press confirm, cancel or correction button afterwards.
5. Take out the card, transaction sheet and (if applicable) the passbook.

How to update your passbook
1. Press the passbook update button.
2. Insert the passbook. You may also have to insert your ATM card and punch in your 4-digit code.

There are many cases where non-japanese (foreign) issued cards can’t be used to withdraw cash in Kanazawa (Ishikawa’s largest city) so it is best to either withdraw cash at your airport of arrival or to prepare traveler’s checks. Note that, while payment of shopping can be made on a wide range of credit cards, on many occasions these same cards cannot be used to debit your account or as a cash card. Since the company that produces the cards differs from country to country it is not always the case you will be able to withdraw using your card.

Locations you may be able to use foreign issued cards to get money

Kanazawa (katamachi) Labro: ATM corner at the rear left of the 1st floor(withdraws possible at the JCB and UC ATMs, but dependant on the card)
Kanazawa (katamachi) Daikwa: ATM corner on the 7th floor
Post Offices: Post office ATM Bank ATM Credit company ATM
Foreign Cards: Visa International, Masters Card Intl, American Express, Diners Card.
Associated card companies Ok At the ATM’s of the same credit company as the card own
Foreign debit cards: Cards from financial groups participating in Visa Electron & Maestro Electron NG

Making cash withdraws at post offices
Basically, it is possible to withdraw cash from post office ATMs (you can withdraw, deposit and check funds also) with foreign issued bank cards which carry VISA, Mastercard, Diners, Amex logo. However, you will not be able to use you card if the machine does not carry the above marks.Plus and Cirrus cards are supposedly usable, but in reality the possibility of use is limited at best due to associations still being developed. From time to time the connection between the ATM and Plus/Cirrus may not get through, so come back to the machine after a while and try again. The main locations we suggest are as follows.Korinbo, Kanazawa, Chuo, Kanazawa Ekimae, ATM inside Meitetsu M’ZA dept. Store, ATM inside Daiwa dept. store.

Metropolitan / regional bank ATM cash withdraws
There is the possibility that you may be able to withdraw funds with a credit card the bank is associated with. However, you will not be able to make withdraws with foreign issued debit or cash cards at metropolitan or regional banks.

Credit company ATM cash withdraws
Locations are limited, and you must have a PIN already installed for your card.Mastercard debit cards sometimes don’t work, so take care. The locations of credit companies ATMs where it may be possible to use your card are as follows:- LABRO: ATM corner at the rear left of the 1st floor(withdraws possible at the JCB and Uc ATMs, but dependant on the card)- DAIWA: ATM corner on the 7th floor(withdraws possible at the JCB ATM, but dependant on the card).

While Japan is a relatively safe country to live in, you should take care to keep your cash secure. Money has been stolen from a JET's apartment.  Japan runs very much on a cash economy. People here think nothing about carrying \50,000 and it is not unusual to possess larger amounts of cash (for example, your monthly pay packet). Japanese people frequently have small safes within their homes but generally single people living in apartments do not. If you do keep cash in your apartment, make certain that no one knows where it is and do not let people know that you have it. If you are concerned about security, you may ask your school to pay you via a bank transfer instead of in cash.