How to save the most money when exchanging Japanese Yen in 2025? Bank counter vs online remittance vs foreign currency ATM — a complete breakdown

Taiwan dollar to Japanese yen has already fallen to the 4.85 level. Many people are looking to enter the market during this upward trend. But did you know? Just choosing the right exchange method can save you thousands in currency conversion costs. We have compiled the latest rates and fees for four major currency exchange channels to help you quickly determine which is the most cost-effective.

Why is now a good time to consider exchanging for Japanese yen?

The Japanese yen is not just a “consumption currency” for travel; from an investment perspective, it is becoming Taiwan people’s preferred hedge.

Travel and consumption: Japan’s cash culture remains mainstream, with only 60% credit card penetration. Many drugstores, small restaurants, and convenience stores still only accept cash. Coupled with the rigid demand from proxy shopping and students studying abroad, the volume of yen exchange has been increasing year after year.

Financial hedging: The yen is one of the world’s three major safe-haven currencies alongside the US dollar and Swiss franc. When the Russia-Ukraine conflict erupted, the yen appreciated by 8% in a single week, effectively offsetting stock market declines. For Taiwanese investors, allocating assets in yen is like adding an insurance layer against Taiwan stock market volatility.

Exchange rate trend: Compared to 4.46 at the start of the year, the current 4.85 has appreciated by 8.7%. The Bank of Japan’s interest rate hike expectations are heating up (expected to raise to 0.75% on December 19), providing long-term support for a stronger yen. However, short-term fluctuations of 2-5% still exist, so gradual entry is the best strategy.

The four major ways to exchange for Japanese yen in Taiwan

Method 1: Bank counter cash exchange (highest cost)

Bring cash in Taiwan dollars directly to a bank or airport counter to receive yen cash on the spot. This is the most traditional and safest method, but it uses the “cash selling rate,” which is 1-2% worse than the spot rate.

Example calculation: Exchange NT$50,000 at the counter

• Taiwan Bank cash selling rate: 0.2060 (i.e., 1 TWD = 4.85 yen)
• Exchange amount: 50,000 × 4.85 = 242,500 yen
• Estimated loss: NT$1,500-2,000

Advantages: Safe and reliable, full denominations, in-person guidance from staff

Disadvantages: Large rate gap, limited business hours, possible extra charges

Suitable for: Last-minute travelers, urgent airport needs, those unfamiliar with online operations

Method 2: Online bank transfer + counter or ATM withdrawal

Use bank app or website to convert TWD to yen online and deposit into a foreign currency account. The rate uses “spot sell” (about 1% better than cash selling rate). If cash is needed, withdraw at counter or foreign currency ATM, with additional withdrawal fees.

Example calculation: Online exchange NT$50,000

• Spot sell rate: about 4.87
• Exchange amount: 50,000 × 4.87 = 243,500 yen
• Withdrawal fee: NT$100 and up
• Estimated loss: NT$500-1,000

Advantages: 24/7 operation, can average costs over multiple transactions, relatively favorable rates

Disadvantages: Need to open a foreign currency account first, withdrawal fees apply

Suitable for: Those experienced in forex investment, accustomed to regular currency exchange, planning yen fixed deposits

Method 3: Online currency conversion + airport pickup (most recommended)

No need for a foreign currency account. Book online via bank website, specify amount and pickup branch. After transfer, go in person with ID and transaction notice to pick up. Taiwan Bank’s “Easy Purchase” online currency conversion often waives fees; if paying via TaiwanPay, only NT$10.

Example calculation: Online convert NT$50,000

• Taiwan Bank online rate: about 0.5%
• Fee: NT$10 (if paid via TaiwanPay) or free
• Estimated loss: NT$300-800

Advantages: Best exchange rate, usually no fee, can choose from 14 Taoyuan airport pickup points (2 open 24 hours)

Disadvantages: Need to book 1-3 days in advance, pickup limited by bank hours, branches cannot be changed

Suitable for: Planned travelers who decide their itinerary at least a week before departure

Method 4: Foreign currency ATM withdrawal 24/7 (most flexible)

Use a chip-enabled financial card to withdraw yen cash directly from foreign currency ATMs. Supports 24-hour operation, interbank withdrawal fee is NT$5. Limited locations (~200 nationwide), fixed denominations (1,000/5,000/10,000 yen), cash may be unavailable during peak times.

Example calculation: NT$50,000 withdrawal via foreign ATM

• No exchange fee
• Interbank fee: NT$5
• Estimated loss: NT$800-1,200 (due to rate difference)

Advantages: Instant withdrawal, flexible, lowest cross-bank fee

Disadvantages: Few ATMs, limited denominations, often sold out at airports during peak hours

Suitable for: People with no time to visit banks, urgent small amounts

Cost comparison table of the four methods

Best budget combo for beginners: NT$50,000-200,000 → prioritize “online currency conversion,” switch to “foreign currency ATM” for urgent needs

FAQs

Q: What’s the difference between cash exchange rate and spot rate?

Cash exchange rate is the rate banks offer for physical banknotes, usually worse (convenient but costly); spot rate is the T+2 settlement price in the forex market, closer to international market (requires waiting but more economical). Simply put, electronic transfers use the spot rate, cash transactions use the cash rate.

Q: How much yen can I get for NT$10,000?

【Yen = NT$ × rate】Based on Taiwan Bank’s December 10, 2025 rate, NT$10,000 at cash selling rate 4.85 gets about 48,500 yen; at spot rate 4.87, about 48,700 yen, difference of about 200 yen (NT$40).

Q: What ID do I need for counter exchange?

Taiwanese need to bring ID card + passport; those under 20 need parent accompaniment and consent. Large exchanges over NT$100,000 may require source of funds declaration. If pre-booked online, also bring transaction notice.

Q: Is exchanging for yen cheaper than HKD?

HKD and JPY exchange costs are similar, both around 1-2% cash rate difference. But yen’s safe-haven attribute and investment returns (BOJ rate hikes pushing fixed deposit rates to 1.5-1.8%) make it more attractive. For travel, costs are similar; the key is choosing the right exchange method.

After exchanging yen, don’t let your money sit idle

If you don’t plan to use the yen immediately, consider the following investment options:

Yen fixed deposit: Open a foreign currency account online with banks like E.SUN or Taiwan Bank, with a minimum of 10,000 yen, annual interest rate 1.5-1.8%, for steady income.

Yen insurance policies: Cathay, Fubon offer yen savings insurance with guaranteed rates of 2-3%, suitable for medium-term asset allocation.

Yen ETFs: Products like Yuanta 00675U, Fuhua 00703 track yen indices; buy fractional shares via brokerage apps, suitable for regular dollar-cost averaging.

Forex swing trading: If confident in exchange rate movements, trade USD/JPY or EUR/JPY to capture short-term fluctuations, but manage risks carefully.

While yen has hedging features, its two-way volatility should not be underestimated. BOJ rate hikes are positive, but global arbitrage unwinding and geopolitical risks (Taiwan Strait) may still suppress the yen. Investors should adopt a “gradual entry, diversified allocation” strategy to lock in current gains and spread risks.

Summary: The golden rule of exchanging for yen

The yen has long transcended its role as “travel pocket money” and has become an asset class with hedging and investment value. By following the principles of “gradual exchange” and “not lying flat after exchanging,” you can capture maximum benefits at the lowest cost.

For beginners, start with “Taiwan Bank online currency conversion + airport pickup,” then progress to “foreign currency fixed deposits” or “ETF regular investment.” This way, you can enjoy cheaper travel and add a layer of protection during global market fluctuations.