Sending money to Japan from overseas can be a complex process, especially for those who are not familiar with the Japanese banking system. With a variety of banks and financial institutions to choose from, it can be difficult to decide which one offers the best services, exchange rates, and fees.

In this article, we will compare SMBC, Wise, SBI Shinsei Bank, Rakuten Bank, and Sony Bank in relation to sending money to Japan. We will discuss each bank’s advantages and disadvantages and provide information to help customers make informed decisions.

SMBC (Sumitomo Mitsui Banking Corporation)

SMBC is one of the largest banks in Japan, with a global network that spans over 40 countries. The bank offers a wide range of financial services, including international money transfers. SMBC’s international money transfer service allows customers to send money to over 150 countries in over 40 currencies.

One advantage of using SMBC for sending money to Japan is its extensive network of correspondent banks. SMBC has partnerships with over 500 banks and financial institutions worldwide, making it easier for customers to send money to Japan from almost anywhere in the world.

Another advantage of using SMBC for sending money to Japan is its competitive exchange rates. The bank offers real-time exchange rates that are updated every five seconds, ensuring that customers receive the best possible rate at the time of transfer. However, it’s important to note that the exchange rates offered by SMBC may not always be the best available, so customers should compare rates from other banks and financial institutions before making a transfer.

One disadvantage of using SMBC for sending money to Japan is its high fees. SMBC’s fees for international money transfers can be significantly higher than those charged by other banks, especially for smaller transfer amounts. For example, the bank charges a flat fee of up to JPY 7,000 for transfers of up to JPY 1 million, which can be expensive for customers who are sending smaller amounts. This fee does not include foreign exchange fees as well as bank charges for the banks concerned, which when added up, will be even more expensive.

 Advantage

• The extensive network of correspondent banks
• Competitive exchange rates

Disadvantage

• High remittance fees

Wise

Wise (previously known as TransferWise) is a reliable and cost-effective option for sending money to Japan.

The service charges a fixed fee and a variable fee of 0.5-1%, depending on the currency used, and does not impose any receiving charges or exchange rate fees for small amounts. The transfer time is usually two days, although it can be faster. The only drawback is that Wise is only available in a limited number of countries, and for large money transfers over 1 million JPY, the receiving bank in Japan may charge a small receiving fee.

Wise also offers a multi-currency account that allows residents of Japan to receive payments in 10 different currencies. This account provides bank details for various countries, including the UK, Europe, the US, Australia, New Zealand, Singapore, Canada, Turkey, Romania, and Hungary. The account enables the free transfer of money to your Wise account and supports over 50 currencies. The Wise debit card allows you to spend in local currencies as well. This account is designed for people who require bank accounts in multiple countries for work or other purposes. Last but not least, Wise shows all fees upfront, so you know exactly how much you’ll be charged before you make the transfer. You can also track your transfer at every step of the way.

However, Wise has partnerships with selected banks in Japan, which means that the recipient’s bank must be a partner for the transfer to be successful. Furthermore, like any online service, Wise is subject to technical issues that can affect the speed and reliability of transfers. Despite all these, Wise is still a fantastic and reliable option for sending money to Japan.

 Advantage

• Does not impose any receiving charges or exchange rate fees for small amounts
• Wise offers a multi-currency account that allows residents of Japan to receive payments in 10 different currencies

Disadvantage

• Only available in a limited number of countries
• For large money transfers over 1 million JPY, the receiving bank in Japan may charge a small receiving fee
• The recipient’s bank must be a partner of Wise

SBI Shinsei Bank

SBI Shinsei Bank (previously known as Shinsei Bank) is a relatively new bank in Japan, having been established in 2000, although its history goes all the way to 1952 when it was first founded as the Long-Term Credit Bank of Japan. The bank offers a variety of financial services, including international money transfers. SBI Shinsei Bank’s international money transfer service allows customers to send money to over 200 countries in over 20 currencies.

One advantage of using SBI Shinsei Bank for sending money to Japan is its competitive fees. The bank’s fees for international money transfers are generally lower than those charged by larger banks such as SMBC, especially for smaller transfer amounts. For example, the bank charges a flat fee of JPY 2,000, which can be more affordable for customers who are sending smaller amounts. If the recipient is either a “Diamond”, “Platinum”, “Gold” or “Silver” under the Step Up Program at the time of receiving the incoming foreign exchange remittance, the handling fee of JPY 2,000 will be refunded to the recipient’s account, which means that handling fees are basically free.

Another advantage of using SBI Shinsei Bank for sending money to Japan is its easy-to-use online platform. Customers can easily set up an account and make international money transfers online, without having to visit a branch. The bank’s platform also offers real-time exchange rates that are updated every minute, ensuring that customers receive the best possible rate at the time of transfer.

One disadvantage of using SBI Shinsei Bank for sending money to Japan is its limited network of correspondent banks. Similar to Wise, the bank has partnerships with only a few dozen banks and financial institutions worldwide, which may make it more difficult for customers to send money to Japan from certain countries. These countries include Singapore, Turkey, China, Norway, Hong Kong, the UK, Europe, the US, Australia, Canada, New Zealand, and South Africa.

 Advantage

• Available in over 200 countries in over 20 currencies
• The bank’s fees are generally lower than those charged by larger bank, especially for smaller transfer amounts
• Easy-to-use online platform

Disadvantage

• Limited network of correspondent banks

Rakuten Bank

Rakuten Bank is an online bank that was established in 2000. The bank offers a variety of financial services, including international money transfers. Rakuten Bank’s international money transfer service allows customers to send money to over 200 countries in over 20 currencies.

One advantage of using Rakuten Bank for sending money to Japan is its low fees. For example, the bank charges a flat fee of JPY 2,450 for receiving overseas remittances, which may not be that affordable for customers who are sending smaller amounts.

The bank may allow overseas remittances in over 20 currencies, but receiving them is different. Unfortunately, Rakuten Bank only handles just a handful of currencies from countries like UK, Europe, US, Australia, New Zealand, and South Africa. These currencies when received in the bank will be automatically converted into Japanese Yen, which may not be favorable for some people.

 Advantage

• Low flat fees

Disadvantage

• Only handles currencies from countries like the UK, Europe, the US, Australia, New Zealand, and South Africa.

Sony Bank

Sony Bank is an online bank that was established in 2001. The bank offers a variety of financial services, including international money transfers. Sony Bank’s international money transfer service allows customers to send money to over 190 countries in over 40 currencies.

Using Sony Bank to receive money from overseas is free, which is great for all kinds of customers who need to use the service. The bank also has a great reputation for its user-friendly smartphone app, as well as its English customer support, which makes it a rather popular bank among foreigners residing in Japan.

Sending money to Japan through Sony Bank can be a bit challenging due to its limited network of correspondent banks. While the bank has partnerships with several banks and financial institutions worldwide, the number is relatively low compared to other banks like SMBC. This can create difficulties for customers from certain countries who wish to send money to Japan through Sony Bank. Furthermore, Sony Bank only allows 10 different currencies from countries such as Switzerland, Hong Kong, Sweden, the UK, Europe, the US, Australia, Canada, New Zealand, and South Africa.

 Advantage

• English customer support
• User-friendly smartphone app

Disadvantage

• Limited network of correspondent banks
• Only allows 10 different currencies from countries such as Switzerland, Hong Kong, Sweden, the UK, Europe, the US, Australia, Canada, New Zealand, and South Africa.

Conclusion

In conclusion, sending money to Japan from abroad can be done through various banks and financial institutions. When choosing a bank, customers should consider factors such as fees, exchange rates, customer support, and the bank’s network of correspondent banks.

While SMBC is one of the largest and most established banks in Japan, it may not always offer the lowest fees or the best exchange rates. Wise, SBI Shinsei Bank, Rakuten Bank, and Sony Bank are also viable options that offer competitive fees and exchange rates, but they have their own advantages and disadvantages that should be considered.

Out of the five banks and services mentioned above, Wise and Sony Bank can be great options for many people for their extremely low fees. Ultimately, customers should compare rates and fees from different banks and choose the one that best meets their needs.