Introduction
Looking for the best online banks in Japan? In recent years, more people in Japan have started using online banks instead of traditional brick-and-mortar banks. Online banks do not have physical branches, nor do they issue passbooks, and most transactions are completed online. This allows them to offer higher interest rates, lower fees, and better rewards. Because of their cost-efficiency, online banks have become an attractive option for many customers.
Japan has a deposit insurance system called payoff, which guarantees deposits of up to 10 million yen (approx. $67,000) per account, along with the accrued interest, even if the bank goes bankrupt. This system, backed by the government and the Bank of Japan, ensures that even newer online banks are relatively safe for customers. Foreigners using Japanese accounts are also covered by this insurance; however, foreign banks with branches in Japan are not eligible.
Popular Online Banks in Japan
Wondering which Japanese internet banks are the most popular? There are many online banks in Japan, including:
- SBI Sumishin Net Bank
- PayPay Bank
- Rakuten Bank
- au Jibun Bank
- Sony Bank
- Seven Bank
- AEON Bank
- SBI Shinsei Bank
- Minna no Bank
- GMO Aozora Net Bank
Personally, I use SBI Sumishin Net Bank, au Jibun Bank, and Sony Bank as a backup.
As for SBI Sumishin Net Bank, it’s very convenient because I use SBI Securities, making transfers seamless. Plus, I can deposit and withdraw money from ATMs using just the app—no need for a physical card. Depending on my account stage, I get multiple free transfers, and even when fees apply, they are significantly cheaper than other banks.
au Jibun Bank also has a user-friendly app that allows cash deposits and withdrawals without a physical card, similar to SBI Sumishin Net Bank. The overall benefits are quite similar, but one key difference is customer service. SBI’s call center can be hard to reach since they operate on a callback system (where you leave your number, and they call you back). In contrast, au Jibun Bank’s call center is much easier to contact, which provides extra peace of mind.
Among these three, Sony Bank feels the most secure. However, the downside is that it doesn’t allow deposits and withdrawals via the app, so you still need a physical card. That’s the only thing I don’t like about it.
Advantages and Disadvantages of Online Banks
Advantages
✅ Convenient and Simple: Everything can be done online, making the process hassle-free.
✅ User-Friendly Apps: Most online banks have intuitive mobile applications.
✅ Lower Fees & Higher Interest Rates: Lower operational costs allow banks to offer better rates and lower transaction fees.
✅ 24/7 Accessibility: Some banks operate 24/7, allowing users to manage their finances anytime, anywhere.
Disadvantages
❌ No Physical Branches: Some people may prefer in-person services.
❌ Salary Deposit Restrictions: Some companies do not allow salary payments to be made into online bank accounts.
❌ Limited Credit Card Compatibility: Some online banks are not accepted as a payment account for specific credit cards.
Comparison of Major Online Banks in Japan
(Note: Interest rates and fees are subject to change. Please check each bank’s official website for the most up-to-date information. This article does not provide financial advice and is for informational purposes only.)
| Bank Name | ATM Withdrawal Fee (Free Limit) | Standard Savings Interest Rate | Transfer Fee to Other Banks |
|---|---|---|---|
| SBI Sumishin Net Bank | ¥110/¥165/¥330 (varies by partner ATM) 2-20 free transactions/month (depends on rank) | 0.10% | ¥77 (1-20 free transactions/month depending on rank) |
| PayPay Bank | ¥165/¥330 (Japan Post Bank ATMs) 1 free transaction/month | 0.10% | ¥145 |
| Rakuten Bank | ¥220/¥275 0-7 free transactions/month (based on Happy Program rank) | 0.10% | ¥145 (0-3 free transactions/month depending on rank) |
| au Jibun Bank | ¥110/¥220 (Japan Post Bank ATMs) 2-15 free transactions/month (based on stage) | 0.11% (up to 0.41% with conditions) | ¥99 (3-15 free transactions/month depending on stage) |
| Sony Bank | ¥110 4-unlimited free transactions/month (based on Club S rank) | 0.20% | ¥110 (1-11 free transactions/month depending on rank) |
| Seven Bank | Complex fee structure | 0.10% | ¥165 |
| AEON Bank | Free for AEON ATMs, 0-5 free transactions/month at other ATMs (based on My Stage rank) | 0.10% (up to 0.18% with conditions) | ¥110 (0-5 free transactions/month depending on rank) |
| SBI Shinsei Bank | ¥110 0-20 free transactions/month (depending on stage) | 0.11% | ¥75-¥214 (1-10 free transactions/month depending on stage) |
| Minna no Bank | ¥110 13 free transactions/month (for premium members under 25) | 0.10% | ¥200 (premium members under 25 get 13 free transactions/month) |
Additional Considerations
Some online banks offer unique benefits. Here are some examples:
- SBI Sumishin Net Bank: With the ATM via App feature, customers can make unlimited free withdrawals and deposits at Seven Bank and Lawson Bank ATMs if their account qualifies.
- PayPay Bank: If users withdraw or deposit over ¥30,000 ($200) at certain ATMs (Seven Bank, Lawson Bank, E-net, Sumitomo Mitsui, Japan Post Bank), the transaction is free.
However, policies and conditions frequently change. It is advisable to review each bank’s official website or consult customer service for the most recent updates before making a decision.
Can Foreigners Open a Japanese Online Bank Account?
Foreign residents in Japan may be eligible to open a bank account, but short-term visitors and tourists generally cannot. To ensure compliance with banking policies, foreigners typically need to meet certain residency and documentation requirements, such as:
- Stay in Japan for at least six months (some banks accept three months for specific cases).
- Hold a valid residence card (e.g., for work, study, or family stay).
- Have a Japanese address registered on the Resident Card.
- Possess a Japanese phone number.
Some banks allow online applications, but additional identity verification may be required. Since policies vary by bank, it is best to check with the bank directly before applying.
Conclusion
Japan’s online banking sector is rapidly growing, offering customers cost-effective and convenient banking solutions. Each bank has unique benefits and limitations, so it is essential to choose one based on your financial needs. If you’re planning to open a bank account in Japan, make sure you meet the eligibility requirements and research the latest banking terms to maximize your benefits. 💰📱