For many foreigners residing in Japan, the labyrinth of banking terminology can pose challenges when performing everyday tasks like transferring funds for utility bills or tuition fees. If you've found yourself grappling with a 'request form for a bank account transfer' or navigating through the steps at a financial institution, you may have encountered terms like '普通 /Futsū/' (ordinary account) or '当座 /Tōza/' (current account). Have you ever wondered what distinguishes one from the other or why your bank account falls into a specific category? This article will introduce you to the nuances of 'savings' and 'current' accounts, explaining these terms in more detail.

普通 /Futsū/ 'Ordinary'

The term "普通貯金" Futsū chokin in Japanese translates to "Ordinary Savings" in English. It means that the 'savings account' is for ordinary or basic transactions that many people use. It's easy for anyone, and both individuals and companies can have one. It's meant for receiving your salary and handling payments. You can freely move money in and out, and you can keep track of your payment history.

A lot of people have this kind of account. Lately, it's even used by businesses because it lets you easily move money and is simple to use online.

Advantages of Savings Accounts:

• Easy Transactions: You can easily make payments, take out money, and put in money. Everything is recorded in your payment history.

• ATM Use: You can use ATMs to put in or take out cash.

• Earns Interest: The money you leave there earns a little extra.

Disadvantages:

• Fees: Banks usually charge service fees for your transactions, for putting money in or taking it out.

• Daily Limits: There's a limit on how much cash you can take out each day.

• Limited Protection: If the bank has some problems, they can only protect up to ¥10 million of your money.

当座 /Tōza/ 'Current'

Now, let's talk about当座貯金/ Tōza chokin or 'current accounts.' The word 当座 /Tōza translates as current or on demand, emphasizing the nature of the account, where funds are available on demand without the need for prior notice, making it suitable for various business transactions and settlements. A current account is like a special business wallet used by companies and solo business owners to make payments using checks or drafts.

Features of Current Accounts

• Full Protection: Your money in a current account is fully protected, even if the bank faces issues.

• Business Transactions: It's perfect for smoothly exchanging money with business partners.

  
  
  
  

Understanding the Details

• No Interest: Current accounts don't earn interest, unlike savings accounts. The law doesn't allow current accounts to charge interest.

• Full Principal Guarantee: Your full principal is protected in a current account, while savings accounts guarantee only up to ¥10 million and interest until the bank's bankruptcy date.

• ATM Transactions: You can't deposit or withdraw money at ATMs with a current account, unlike savings accounts.

• No Daily Limit: Current accounts don't have a daily withdrawal limit, which is handy for big business transactions.

• Overdraft Agreement: Current accounts may have an overdraft agreement, allowing you to spend more than your balance.

What kind of account is my GIG-A account?

When you have an account in GIG-A, you have the 普通 /Futsū/ 'Ordinary' account, which enables you to deposit and withdraw money and issue and receive domestic transfers.

Conclusion

In conclusion, opening a bank account in Japan is essential for managing finances and daily transactions as a foreigner. By understanding the different types of bank accounts available, you can choose the one that best suits your needs and avoid unnecessary fees and penalties. At GIG-A, we strive to provide the best banking experience for foreigners in Japan, and we are always here to assist you with your banking needs.

This blog post was accurate at the time of publication.