How to buy Japanese Yen most cheaply? Four exchange methods explained all at once

Want to exchange Japanese Yen but don’t know the most cost-effective way to buy? This year, the TWD/JPY exchange rate has reached 4.85, with travel and investment demand for the yen continuing to rise. The key isn’t “whether to exchange,” but “which method to use”—simply choosing different exchange channels can result in a cost difference of NT$1,000 to NT$2,000 for the same NT$50,000.

We compare four mainstream bank options—Taiwan Bank, E.SUN Bank, Mega International Commercial Bank, and others—for JPY exchange methods to help you find the most suitable currency exchange strategy.

How to buy JPY? Quick judgment table

In-depth analysis: 4 ways to buy JPY

Method 1: Online currency purchase, designated branch pickup (most cost-effective)

No need to open a foreign currency account. Simply fill in currency, amount, pickup branch, and date on the bank’s official website. After remittance, bring ID and transaction notification to pick up at the counter. Taiwan Bank’s “Easy Purchase” and Mega Bank offer this service, especially supporting 14 pickup points at Taoyuan Airport (2 open 24 hours).

Highlights of Taiwan Bank’s online currency purchase: about 0.5% favorable exchange rate, NT$10 handling fee or free with Taiwan Pay, lowest estimated cost. This is the golden plan before departure, especially suitable for travelers who plan ahead.

Suitable for: Planned travelers who want to pick up cash directly at the airport.
Note: Reservation required (at least 1-3 days in advance). Pickup time limited by bank hours; branches cannot change reservations on the spot.

Method 2: Foreign currency ATM, 24-hour quick cash (most convenient)

Use a chip-enabled financial card to withdraw yen cash at bank foreign currency ATMs, supporting 24-hour operation and interbank withdrawals. When deducting from a TWD account, the interbank fee is only NT$5—lowest among all methods. Mega Bank’s foreign currency ATMs allow withdrawal of yen from TWD accounts with a daily limit of NT$150,000, no currency exchange fee.

Suitable for: Readers who don’t have time to visit banks, need immediate withdrawal, or want nearby cash at airports or MRT stations.
Limitations: About 200 locations nationwide (not all branches), denominations fixed at 1,000/5,000/10,000 yen, cash may run out during peak hours. Avoid waiting until the last minute to withdraw.

Method 3: Online currency exchange, holding a foreign currency account (most flexible)

Via internet banking or app, convert TWD into yen and deposit into a foreign currency account, using the “spot sell rate” (about 1% better than cash selling rate). If cash is needed, withdraw at counters or ATMs, but extra exchange spread fees apply (from NT$100).

Advantages include observing exchange rate trends, entering in batches at low points (e.g., TWD/JPY below 4.80), averaging costs. E.SUN Bank’s app interface is user-friendly; withdrawal fees for yen cash are the difference between spot and cash rates, starting at NT$100.

Suitable for: Experienced forex users, those with foreign currency accounts, or planning to invest in yen deposits (current annual interest rate about 1.5-1.8%).
Requirements: Need to open a foreign currency account first; additional cross-bank withdrawal fees (about NT$5-100) apply when taking out cash.

Method 4: On-site cash exchange (most secure but most expensive)

Carry NT$ cash directly to bank branches or airport counters to exchange for yen cash. Simple and safe, but using “cash selling rate” (about 1-2% worse than spot rate), overall cost is highest. For example, Taiwan Bank’s rate on 2025/12/10 was about NT$0.2060 per yen (roughly NT$4.85/JPY), some banks add fixed handling fees.

Latest bank rates (updated 2025/12/10):

• Taiwan Bank: NT$0.2060/JPY, no fee
• Mega Bank: NT$0.2058/JPY, NT$100 per transaction
• Fubon Bank: NT$0.2069/JPY, NT$100 per transaction

Suitable for: Those unfamiliar with online operations or needing small amounts for urgent airport use.
Disadvantages: Higher costs due to poorer rates, limited by bank hours (weekday 9:00-15:30), possible additional handling fees.

Is it cost-effective to exchange JPY now? Timing analysis

As of December 2025, TWD/JPY is about 4.85, up from 4.46 at the start of the year—an appreciation of about 8.7%. For Taiwanese investors, currency gains from exchanging yen are quite attractive, especially amid ongoing TWD depreciation pressures. Industry observations show a 25% increase in exchange demand in the second half of the year, driven by travel recovery and hedging needs.

Short-term exchange rate outlook: The Bank of Japan is poised to raise interest rates. Governor Ueda’s hawkish comments have pushed market expectations to 80%, with a rate hike of 0.25 bps to 0.75% expected at the December 19 meeting (30-year high), with JGB yields reaching 17-year highs of 1.93%. USD/JPY has fallen from the early-year high of 160 to around 154.58; short-term fluctuations may bring it back to 155, but medium to long-term forecasts suggest below 150.

Investment perspective: The yen, as one of the world’s three major safe-haven currencies (alongside USD and CHF), can hedge against Taiwan stock market volatility. However, short-term risks include arbitrage unwinding, causing 2-5% volatility. Recommend gradual entry, avoid all-in exchange.

How to make yen work after buying: How to earn interest on yen

After exchanging for yen, instead of letting the funds sit idle without interest, consider these four stable or growth-oriented allocations:

Yen fixed deposit: The most stable option. E.SUN Bank and Taiwan Bank offer foreign currency accounts, with online deposits. Minimum NT$10,000 yen, current annual interest 1.5-1.8%, suitable for capital preservation-oriented investors.

Yen insurance policies: Medium-term holding tools. Cathay and Fubon Life offer yen savings insurance with guaranteed interest rates of 2-3%, combining protection and returns.

Yen ETFs: Growth-oriented allocation. For example, Yuanta 00675U tracks the yen index, purchasable in broker apps via fractional shares, suitable for regular investment.

Forex swing trading: Advanced option. Trade USD/JPY or EUR/JPY directly, 24-hour trading, flexible long/short positions, starting with small capital, but requires basic forex knowledge and risk tolerance.

Common Q&A

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

Cash rate (Cash Rate) is the buy/sell rate banks offer for physical cash (bills/coins). It’s immediate but usually 1-2% worse than the spot rate. Spot rate (Spot Rate) is the exchange rate for transactions settled within two business days in the forex market, mainly used for electronic transfers. It’s more favorable and close to international market prices but requires T+2 settlement.

Q: How much yen can NT$10,000 buy?

Using the formula 【JPY amount = NT$ amount × current rate】. At Taiwan Bank’s cash selling rate of 4.85, NT$10,000 ≈ 48,500 yen; at the spot rate (~4.87), about 48,700 yen—difference of roughly 200 yen.

Q: What’s the safest way to buy yen? What should I prepare?

Visit a bank counter for foreign currency cash exchange, bringing ID + passport (foreigners bring passport + residence permit). For online reservations, attach transaction notification. Under 20 requires parental accompaniment; large exchanges over NT$100,000 may require source of funds declaration.

Q: What’s the daily withdrawal limit at foreign currency ATMs?

As of 2025, limits vary by bank:

• CTBC: equivalent NT$120,000/day
• Taishin Bank: NT$150,000/day
• E.SUN Bank: NT$150,000/day (including signed bills, with a single limit of NT$50,000 per withdrawal).
  Interbank withdrawals are usually restricted by the issuing bank. It’s recommended to split withdrawals or use your own bank card to avoid cross-bank fees.

Summary: The ultimate guide to buying JPY

The yen has evolved from a simple “travel pocket money” to an asset class with hedging and investment value. In 2025, the exchange environment offers both potential for appreciation and risk hedging.

Core principle: Use a “batch exchange + post-exchange allocation” dual strategy to minimize costs and maximize returns.

The easiest entry for beginners is “Taiwan Bank online currency purchase + airport pickup” or “emergency withdrawal via foreign currency ATM.” Then, based on needs, transfer yen into fixed deposits, ETFs, or swing trading. This way, you not only enjoy more cost-effective travel but also add a layer of protection amid global market fluctuations.