Four major ways to receive Japanese Yen: bank, ATM, online remittance—how to choose the most cost-effective?

December 10, 2025, the Taiwanese dollar (TWD) has reached 4.85 against the Japanese Yen (JPY), and the interest in travel to Japan and Yen investments continues to rise. However, there is more than one way to exchange for Yen, and the cost difference for cash withdrawal alone could cost you an extra 2,000 NT dollars. We provide a detailed comparison of the four major cash withdrawal channels in Taiwan to help you find the most suitable exchange method for your needs.

Is it cost-effective to exchange for Yen now? Seize the key timing

At the beginning of the year, the TWD/JPY rate was only 4.46, appreciating by 8.7% in just 11 months, making investment returns quite attractive. Especially under the pressure of TWD depreciation, positioning Yen as a hedge asset continues to gain appeal.

Market observations show that Taiwan’s foreign exchange demand increased by 25% in the second half of the year, mainly driven by travel recovery and hedging needs. The Bank of Japan (BOJ) is about to raise interest rates—recent hawkish comments from Governor Ueda Kazuo have pushed market expectations to 80%, with a rate hike of 0.25 basis points to 0.75% expected at the December 19 meeting (a 30-year high). Japanese government bond yields have hit a 17-year high of 1.93%. The USD/JPY rate has fallen from a high of 160 at the start of the year to around 154.58 now; in the short term, it may rebound to 155, but medium to long-term forecasts suggest it will stay below 150.

Therefore, now is a good time to buy Yen in installments, but avoid exchanging the full amount at once.

Cost and process comparison of the four major cash withdrawal methods

Method 1: In-person cash exchange — the most traditional but most expensive

Carry cash in TWD to a bank or airport counter to withdraw Yen directly. This is the simplest method but uses the “cash selling rate,” which is about 1-2% worse than the spot rate, plus handling fees, making it the most costly overall.

For example, according to Taiwan Bank’s rates on December 10, 2025, the cash selling rate is approximately 0.2060 TWD per Yen (i.e., 1 TWD = 4.85 Yen). For 50,000 TWD, the estimated loss is about 1,500-2,000 NT dollars.

Advantages: Safe, reliable, denominations available, staff assistance
Disadvantages: Exchange rate difference, limited operating hours, possible handling fees
Suitable for: Those unfamiliar with online methods, needing small, temporary cash withdrawals

Rates for cash selling on December 10, 2025, at various banks:

Method 2: Online exchange + airport cash pickup — the most cost-effective traveler solution

No foreign currency account needed. Simply fill in currency, amount, pickup branch, and date on the bank’s website. After completing the online transaction, bring your ID and transaction notification to the counter for pickup. Taiwan Bank’s “Easy Purchase” online exchange offers a 0.5% rate discount, paying with Taiwan Pay costs only 10 NT$, and often no handling fee.

Key advantages: 14 Taiwan Bank branches at Taoyuan Airport (2 open 24 hours), allowing direct airport pickup before departure, saving a trip to the bank. For 50,000 TWD, estimated loss is 300-800 NT$, saving over 1,000 NT$ compared to in-person exchange.

Advantages: Better rates, often no fees, designated airport pickup, planned approach
Disadvantages: Need to book 1-3 days in advance, pickup limited to operating hours
Suitable for: Travelers with planned trips, those wanting to withdraw directly at the airport

Method 3: Online currency exchange + foreign currency account withdrawal — ideal for long-term investors

Use bank app or online banking to convert TWD into Yen and deposit into a foreign currency account, using the spot sell rate (about 1% better than cash selling). If cash is needed, withdraw at counters or foreign currency ATMs, but fees apply (starting around 100 NT$).

This method suits investors monitoring exchange rates and buying in batches at low points. For example, after exchanging via E.SUN Bank app, withdrawing Yen cash incurs a fee equal to the difference between spot and cash rates, minimum 100 NT$. For 50,000 TWD, estimated loss is 500-1,000 NT$.

Advantages: 24/7 operation, averaging costs over time, better rates, can combine with fixed deposits (annual interest 1.5-1.8%)
Disadvantages: Need to open a foreign currency account first, withdrawal fees for cash
Suitable for: Those experienced in forex, holding Yen long-term, or investing in fixed deposits

Method 4: Foreign currency ATM cash withdrawal — 24/7 unattended

Use a chip-enabled bank card at foreign currency ATMs to withdraw Yen cash directly. Supports 24-hour operation, with a TWD account deduction fee of only 5 NT$ for cross-bank transactions. Fubon Bank’s foreign currency ATMs allow withdrawal from TWD accounts with a daily limit of 150,000 NT$, no exchange fee.

Key limitations: Limited locations (~200 nationwide), fixed denominations (1000/5000/10000 Yen), cash may run out during peak times. For 50,000 TWD, estimated loss is 800-1,200 NT$.

Advantages: Instant cash, flexible, low cross-bank fees
Disadvantages: Limited locations, fixed denominations, possible shortages during busy periods
Suitable for: Those without time to visit banks, urgent needs, no prior appointment

Quick comparison table: costs and scenarios

Frequently Asked Questions

Q: What’s the difference between cash exchange rate and spot rate?
Cash rate applies to physical banknotes, usually 1-2% worse than the spot rate, but you get cash immediately. Spot rate is used for electronic transfers (T+2 settlement), closer to international market prices, but involves waiting.

Q: How much Yen can I get with 10,000 TWD?
Using Taiwan Bank’s cash selling rate of 4.85, about 48,500 Yen; with the spot sell rate of 4.87, about 48,700 Yen. The difference is only about 200 Yen (~40 NT$).

Q: What do I need to bring for in-person cash withdrawal?
Locals: ID card + passport; foreigners: passport + residence permit. For online booking, also bring transaction notification. Large amounts (over 100,000 NT$) may require source declaration.

Q: Are there withdrawal limits at foreign currency ATMs?
As of 2025, many banks have adjusted limits. CTBC Bank: daily limit of 120,000 NT$ for its card, 20,000 NT$ per transaction for others; Fubon Bank: daily limit of 150,000 NT$, E.SUN Bank: also 150,000 NT$. It’s recommended to split withdrawals or use your own bank card to avoid cross-bank fees.

Investment options after cashing out Yen

Don’t let your Yen sit idle without interest. Based on your risk appetite, consider:

Conservative: Yen fixed deposit (annual interest 1.5-1.8%, minimum 10,000 Yen)
Mid-term: Yen insurance savings policy (guaranteed interest 2-3%)
Growth: Yen ETFs (e.g., Yuanta 00675U tracking Yen index, can buy fractional shares)
Advanced: Forex trading (USD/JPY or EUR/JPY swing trading, low-cost, no commission)

While Yen is a hedge, it also has two-way volatility risk. For investment, Yen ETFs can diversify risk; swing trading can capture exchange rate fluctuations, with 24-hour trading and long/short options.

Final recommendations

Budget 50,000-200,000 NT$: Prioritize “online exchange + airport pickup” for lowest cost and planning.
Small, urgent needs: Use foreign currency ATMs for immediate cash without reservations.
Long-term investment: Open a foreign currency account online, buy in batches, and combine with fixed deposits or ETFs.
Airport emergency: In-person cash exchange, though costly, is useful for last-minute needs before departure.

Understanding the differences among cash withdrawal methods, stagger your Yen purchases, reduce exchange costs, and protect your assets during market fluctuations.