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How to deal with banking for a student? 2008/3/8 09:57
I am going to live in Japan starting from August for a little bit over a year. As a (college) student, I will be relying on my parents for some financial help. As such, they will be sending me money on a regular basis.

What would be the best way to handle this?

That is, should I find a bank that has a branches in America and Japan and have my parents transfer money to that account? Or should I just sign up for a Japanese bank account and have my parents transfer the money to that account (with a, no doubt, service charge)?

Or are there other methods I have not thought of?

Also, any suggestions for specific banks would be very helpful.
by Zporkz  

banking 2008/3/8 15:37
I don't have much info but
it might be cheaper to withdraw money from an American account by using an ATM in Japan, rather than doing a transfer, then depositing that money in a Japanese account instead of carrying big amounts of cash or hiding them in a closet. You can also use American credit cards to pay for expensive items. You can check your USA bank account and pay the credit card bills by internet, or have your parents do it if your bills go to their address.
by Monkey see rate this post as useful

. 2008/3/8 18:10
Withdrawing cash from ATMs in Japan using an US atm card is not a good idea. It's cheaper to wire money to a Japanese bank, even with the service charge. Of course this all depends on how much the service charge is, how your Japanese bank calculates the exchange rate, and how much money you're transferring.

I use Shinsei bank in Japan and HSBC in USA and I know that I'll save money if I transfer at least $2000 at the current exchange rate.

It's also a bad idea to use American credit cards unless it's Capital One. They don't charge a foreign currency conversion fee.
by Big Tom rate this post as useful

atm cards okay 2008/3/9 06:54
I use my US ATM card whenever I'm in Japan. It only costs about $3 or $4 in fees to withdraw about $500. But I'm sure it just depends on who you are banking with. Same with credit card use in Japan. I always use my US credit card as much as possbile. Just check with the different banks for their rates for use before hand. You can wire money with "money gram" and it cost about $40 to wire $2000 to Japan. very easy to do.
by Daz88 rate this post as useful

. 2008/3/9 16:33
You definitely lose more than $3-4 on a $500 withdrawal.

Let's assume the current exchange is Y100 = $0.97. A direct conversion of Y50,000 is $485.

The ATM network doesn't use Y100 = $0.97, but they'll adjust it to +$0.03, so it's Y100 = $1.00. So, instead of getting charged $485, you'll get charged $500. So, you end up losing $15, which is about 3% of $485. On top of that the ATM or your home bank may charge additional service fees.

Now, let's assume $1 = Y107. A direct conversion of $2000 is Y214,000.

If you transfer $2000 from HSBC to Shinsei, HSBC will charge $30 for the wire transfer. If you convert the dollars into yen, Shinsei will use the exchange rate minus Y1, so it's $1 = Y106. The $2000 will convert to Y212,000. You lose Y2000 on the currency exchange, which is $19.40. $30 plus $19.40 equals $49.40, which is about 2.5% of $2000.

In the first method you lose 3% and in the second you lose 2.5%. In the second method, the more money you transfer, the less money you'll lose.

You also have to factor in the interest rate you'll earn on your money, which is always higher in the US.

You guys probably won't read my post but writing it down helped me figure out how much money I was losing.
by Big Tom rate this post as useful

Try Citibank 2008/3/10 11:36
Are you staying in Tokyo? You might want to get a US Citibank account before you leave. Your parents can either wire money into this account or deposit the money directly. You can then withdraw it from a Citibank ATM, found in most "major" areas; i.e., Ikebukuro, Shinjuku, etc. The withdrawal penalty is minimal. I just have a feeling that transferring money from the USA to a Japanese bank account would be really complicated.

If you will be paying rent on an apartment in Japan, then I'd recommend you get a Japanese bank account. Then, you can just transfer rent from there. You can pay for utilities in cash at most convenience stores.

As an aside, I'd recommend when you are in Japan to pay in cash for anything you buy. Skip using your credit card unless absolutely necessary.
by Bob rate this post as useful

Help 2008/3/10 13:01
Just be careful with ATM's- pretty much whatever card you use there will be an ATM fee, PLUS the conversion fee. Last year when I went to Osaka it cost me about $214 to withdraw $200 from either the post office or the ATM, and it cost me a $6 - $7 ATM fee!
So I was basically losing 20 bucks each time I withdrew. But this year, in Tokyo, it only costs me a $2 conversion fee and the $7 fee, so try to withdraw a large amount of money and only do it every fee months, if you're just going to rely on ATM's.

There are some banks that will speak english and will let you open an account, but you need your signature, alien registration card and a passport. (Some will let you just have a passport.)
Try Citibank or JP banks, there pretty much the main ones. But you'd have to check the fees on wiring money with them.
by Emily rate this post as useful

Thanks 2008/3/10 14:13
Thanks for all the help and suggestions so far.

I'm considering a capital one bank account, apparently there is only a 3% withdrawal fee for the currency exchange. However, I'm only going to be in the Osaka area and there are only a few ATMs unfortunately. I'll probably just open up an account with a local Japanese Bank.
by Zporkz rate this post as useful

... 2008/3/10 18:28
As an aside, I'd recommend when you are in Japan to pay in cash for anything you buy. Skip using your credit card unless absolutely necessary.

I disagree with this. Credit cards usually have excellent exchange rates and can be the best way to pay for things. You can then pay it off directly from your US bank account. You will likely save money, perhaps 1 or 2 percent, over using cash as the exchange rate will be similar but you avoid all the transfer/atm fees.
by yllwsmrf rate this post as useful

. 2008/3/11 09:44
I suggest you guys read the following links. Credit cards do have excellent exchange rates but most of them charges 3% just to use it overseas.

http://www.bankrate.com/brm/news/cc/20010416a.asp

http://www.bankrate.com/brm/news/cc/20050624b1.asp
by Big Tom rate this post as useful

under 20? 2008/3/11 09:57
I have read recently that Japanese banks will often not let under-20s open accounts. If you are under 20 have a look into this before you decide on this option.
by Sira rate this post as useful

ATM is the way to go 2008/3/12 09:50
I travel a lot and ATM's are the way to go. It's easy and your parents can deposit money easily and quickly into your account. You save money if you withdrew once or twice a month. It is not a good idea to take small amounts out often, that is a waste. Let's face facts, no matter what you do, you need to get dollars to Japan and change them to Yen, You will pay a price for the service regardless of which way you go. The convenience of ATM's is worth the few extra dollars to me anyway.
by Nicolassan rate this post as useful

Best to check first maybe then 2008/3/12 10:45
When I first got here, I didn't have any money so I was relying on my credit card to buy many things. None of the places I went to accepted my credit card, so I was pretty stuck. I get paid directly to my Japanese bank account, so I just withdraw and pay for everything in cash. So there's no penalties for me.

If you've only got the American bank account, then yes, it's probably best to use the credit card as much as possible then pay it off online. I'm just saying it would be good to find out ahead of time if you can use the card, so you don't get stuck. I still haven't seen anywhere that accepts my credit card.

If you're only getting a Japanese account and money is going directly into that one, then it might be better to use cash.
by Bob rate this post as useful

... 2008/3/12 11:51
what credit card are you using?

Visa is widely accepted. Mastercard, Amex, Discover, etc. not so much if at all.
by yllwsmrf rate this post as useful

credit card 2008/3/12 12:36
I have a Citibank Mastercard. I'm not a big shopper, so I haven't been to any of the famous places in Ginza. For everyday household items, I've been to two different Olympic stores, I bought a jacket at Uniqlo in Ikebukuro, and I go to a few supermarkets near where I live. I haven't been able to use the card at any of those places. I also went to Yodobashi in Akihabara one time, and I could not use it there. Though, I did not ask; I just did not see any signs. I used the card pretty much for everything in the US, and then just paid it off at the end of the month. For Tokyo, I just pay in cash all the time now.
by Bob rate this post as useful

... 2008/3/12 13:02
Yea, I'm not surprised. Mastercard is pretty much not accepted in Japan. Visa on the other hand should be no problem at all the places you mentioned. I find that occasionally my visa credit card won't clear in which case I have a visa debit card that has never been rejected.
by yllwsmrf rate this post as useful

what if you're under 20? 2008/3/12 17:04
I'll be only 19 at the time, but from September, I *have* to open an account, to pay my dormitory fees from... it's a requirement by the university. Do any of you know banks that might let me open an account anyway?
by Student rate this post as useful

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