Tired of the dismal interest rates (0.001%?) offered by Japanese banks? Why not look into a ‘gaika yokin,’ or foreign-currency denominated savings account? Depending on the product, you might be able to find interest rates on Australian or New Zealand dollar accounts in the 3-4% annual range. (Note that this does not account for taxes or currency risk.)
Most large Japanese and foreign banks offer some sort of foreign currency denominated accounts, most often in Euro or US dollars, with other currencies offered at an increasingly number of establishments. Citibank, for example, offers simply foreign-currency denominated savings accounts in over eight currencies, with terms from one week to five years. Shorter-term maturity savings instruments often have a higher payout.
You can also open a direct deposit-style ‘gaika teiki yokin,’ which withdraws a set amount of yen from your bank account every month, converts it into your desired foreign currency, and holds it in a Japanese account. It’s a great way to build foreign currency savings while living in Japan.
© 2004 Wendy J. Imura.