Japanese Yen Financial Beginner Guide: 4 Currency Exchange Methods Compared, Save Money and Earn Interest

December 2025, the Taiwan dollar against the Japanese yen reaches 4.85, appreciating nearly 9% since the beginning of the year. But don’t just think about traveling abroad; the yen has long shifted from a travel “allowance” to a safe-haven asset. This article will guide you to the most cost-effective currency exchange routes and teach you how to make your money work for you after exchanging.

Why exchange to yen now? Three reasons to tell you

Reason 1: Stable safe-haven currency status

The yen is ranked alongside the US dollar and Swiss franc as one of the world’s three major safe-haven currencies. During the Russia-Ukraine conflict in 2022, the yen appreciated 8% in one week, effectively buffering stock market declines. For Taiwanese investors, exchanging to yen is like buying insurance for the Taiwan stock market.

Reason 2: Arbitrage opportunities due to interest rate differentials

The Bank of Japan Governor Ueda Kazuo recently adopted hawkish rhetoric, pushing expectations of rate hikes to 80%, with a projected increase to 0.75% on December 19—hitting a 30-year high. Japanese government bond yields have reached 1.93%, expanding the arbitrage space compared to the US and emerging markets.

Reason 3: Good timing for currency exchange

Compared to the 4.46 rate at the start of the year, the current 4.85 rate is quite favorable. In the second half of the year, Taiwan’s currency exchange demand increased by 25%, reflecting both tourism recovery and safe-haven allocation.

Practical comparison of 4 currency exchange methods

Not all exchange methods are cost-effective. For example, exchanging NT$50,000 can have a cost difference of up to NT$1,700—equivalent to a month’s budget for bubble tea.

Method 1: Cash exchange at counters—traditional but expensive

Bring cash NT$ to a bank or airport counter to exchange for yen notes. Using the “cash selling rate” (1-2% worse than the spot rate), plus possible handling fees, results in the highest cost.

Reference rates (2025/12/10):

• Taiwan Bank cash selling: 0.2060 (NT$1 = 4.85 yen), no fee
• E.SUN Bank: 0.2067, NT$100 per transaction
• Taipei Fubon Bank: 0.2069, NT$100 per transaction

Cost for NT$50,000: about NT$1,500–2,000 loss.

Suitable for: unfamiliar with online operations, urgent needs (e.g., buying tickets at the airport).

Method 2: Online exchange + ATM withdrawal—flexible timing

Use bank app to convert at “spot selling rate” online, then withdraw cash via foreign currency ATM. The rate is better than at counters, but small withdrawal fees apply.

SinoPac Bank’s foreign currency ATMs support NT$ withdrawal directly in yen, with a daily limit of NT$150,000, and a cross-bank fee of NT$5. About 200 ATMs nationwide operate 24/7.

Cost for NT$50,000: about NT$800–1,200 loss.

Suitable for: urgent nighttime needs, busy professionals without time for counter visits.

Method 3: Online currency exchange + designated branch pickup—smartest

Book online via bank website, select branch and pickup date, complete online exchange, then pick up cash at the counter. Taiwan Bank’s “Easy Purchase” online exchange is fee-free (pay NT$10 via TaiwanPay), with a 0.5% favorable rate.

Advantage: can reserve airport branches for pickup; Taoyuan Airport has 14 Taiwan Bank counters (2 open 24 hours), ideal for pre-departure planning.

Cost for NT$50,000: about NT$300–800 loss.

Suitable for: planned travelers, those wanting to pick up cash at the airport.

Method 4: Spot exchange + foreign currency account—investment favorite

Convert online into yen and deposit into a foreign currency account to get the best rate (spot selling). No need to withdraw cash; can directly spend or invest in Japan. If cash withdrawal is needed, fees will apply.

This is the preferred method for long-term holding, or preparing to transfer into fixed deposits or ETFs.

Cost for NT$50,000: about NT$500–1,000 loss (more savings if not withdrawing cash).

Suitable for: readers with forex investment experience planning to transfer into fixed deposits.

Quick reference table for exchanging NT$50,000

What to do after exchanging? Let yen earn interest

Don’t just leave yen idle; utilize Taiwan Bank’s fixed deposits and investment channels to make your idle funds generate interest.

Yen fixed deposit—safe and steady income

E.SUN Bank, Taiwan Bank, Mega International Bank, and others offer yen fixed deposit services.

Which bank offers higher interest? Comparison of major banks’ yen fixed deposit rates in 2025:

• E.SUN Bank: 1.8% annual interest (minimum NT$10,000)
• Taiwan Bank: 1.6% annual interest (minimum NT$10,000)
• Mega Bank: 1.7% annual interest (minimum NT$10,000)

Depositing 100,000 yen for one year, E.SUN can earn about NT$3,000 more than Taiwan Bank. It’s recommended to compare multiple banks and use laddered fixed deposit strategies.

Yen ETFs—growth-oriented allocation

Yuan Da 00675U tracks the yen index, with an annual management fee of 0.4%, suitable for dollar-cost averaging. You can buy fractional shares via any brokerage app to diversify currency risk.

Yen insurance policies—medium-term holding

Cathay Life, Fubon Life offer yen savings insurance with guaranteed interest rates of 2-3%, suitable for 1-3 year medium-term allocation.

Forex swing trading—risk and reward coexist

Trade USD/JPY, EUR/JPY directly on forex platforms (like Mitrade), with long and short positions, 24-hour trading, but requires risk management and technical analysis skills.

Common Q&A

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

Cash rate is the bank’s buy/sell price for physical bills, settled immediately but usually 1-2% worse than the market rate. Spot rate is the foreign exchange market’s T+2 (two business days later) settlement price, closer to international market, suitable for electronic transfers and foreign currency accounts. In simple terms: cash is slow but costly; spot is fast and cheaper.

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

At the current 4.85 rate, NT$10,000 exchanges for about 48,500 yen in cash or 48,700 yen at spot, roughly 200 yen difference.

Q: What documents are needed for counter exchange?

ID card + passport. If booking online for pickup, also bring transaction notification. For large amounts (over NT$100,000), you may need to declare source of funds.

Q: Are there withdrawal limits for foreign currency ATMs?

Post-2025 regulations, most banks set daily limits of NT$100,000–150,000. Use your own bank card to avoid cross-bank fees (NT$5 per transaction). During peak times (like airports), cash may run out early—plan ahead.

Final reminder on exchanging to yen

While the yen remains a strong safe-haven, it also experiences two-way fluctuations. Rate hikes by the Bank of Japan support yen strength, but global arbitrage unwinding or geopolitical conflicts could push it down. Whether for travel or investment, the core principles are two:

1. Dollar-cost averaging—avoid exchanging all at once, to diversify exchange risk.

2. Don’t just sit on the exchange—move into fixed deposits, ETFs, or policies—let idle money generate passive income.

By doing so, you not only enjoy cost-effective travel but also add a layer of financial protection amid global market volatility.