How to save the most money when exchanging Japanese Yen in 2025? A comprehensive guide to the true costs of 4 different methods of exchanging for new bills

The pressure on the NT dollar to depreciate has increased, and the Japanese yen’s appeal as a safe-haven currency has clearly risen. As of December 10, 2025, the NT dollar to Japanese yen exchange rate has surged to 4.85, with a cumulative appreciation of over 8.7% this year. Many are eager to try, but the key question is: what method of exchanging yen can minimize costs?

Check the exchange rate first and then decide: Is now a good time to exchange?

It’s not the optimal time, but it’s a good time to enter the market.

Currently, the yen exchange rate is in a fluctuation range, and the market expects the Bank of Japan (BOJ) to raise interest rates by 0.25 basis points to 0.75% on December 19 (a 30-year high), which supports the yen. Meanwhile, the US has entered a rate-cut cycle, with USD/JPY falling from a high of 160 at the start of the year to 154.58.

In the short term, volatility may return to around 155, but in the medium to long term (3-6 months), it is forecasted to stay below 150. In other words, there’s no need to wait for the “perfect timing.” The key is to enter gradually and diversify exchange rate risk.

For travel or small investment needs, the gains from exchanging yen now are quite substantial. According to the latest statistics, Taiwan’s foreign exchange demand in the second half of 2025 increased by 25%, mainly driven by travel recovery and hedging needs.

4 practical methods for exchanging new bills: which is the most cost-effective?

Theoretically, there are four options, but the cost difference can be over NT$1,700 (based on exchanging NT$50,000). Here are the actual test results:

Option 1: Foreign currency ATM withdrawal (most flexible but with cash risk)

Suitable for: People without time to visit banks, needing to withdraw cash anytime.

E.SUN Bank’s foreign currency ATM allows direct withdrawal of yen from a NT dollar account, with a daily limit of NT$150,000 and a cross-bank fee of only NT$5. No exchange fee, operational 24/7.

However, there are two hidden pitfalls:

1. Limited locations (about 200 nationwide), and cash may run out during peak times (especially at airports). Many only realize they can’t withdraw cash at the last minute, resulting in a wasted trip.

2. Fixed denominations (1,000/5,000/10,000 yen), no flexible combination. If you need a specific amount, you might waste cash.

Estimated cost: Withdrawing NT$150,000 worth of yen, cross-bank fee NT$5 + exchange rate spread about NT$800-1,200 = total NT$800-1,200.

Option 2: Online currency exchange with in-person pickup (most recommended for commuters)

Suitable for: Planned travelers who want to pick up cash directly at the airport.

Taiwan Bank’s “Easy Purchase” online exchange service has no handling fee (pay NT$10 via TaiwanPay). You can pre-book and pick up at 14 Taiwan Bank counters at Taoyuan Airport, including 2 open 24 hours.

The exchange rate is about 0.5% better than in-branch rates, saving NT$250-300 on NT$50,000. Pre-booking usually takes 1-3 days, perfect for planning before departure.

Advantages include guaranteed cash availability (ample stock at the airport) and no handling fee. Disadvantages are that branch changes are not possible, and withdrawal is limited to banking hours.

Estimated cost: Lowest online exchange fee (NT$10 TaiwanPay), with a rate advantage, estimated loss NT$300-800.

Option 3: In-branch cash exchange at banks (traditional but most secure)

Suitable for: Elderly, those unfamiliar with online operations, or needing small amounts temporarily.

This is the traditional method: bring cash NT$ to a bank branch or airport counter and exchange on the spot for yen cash.

Advantages include safety, full denominations (1,000, 5,000, 10,000 yen options), and on-site assistance from staff. Disadvantages are that it uses the “cash selling rate,” which is 1-2% worse than the spot rate. Some banks also charge fixed handling fees, up to NT$200.

December 10, 2025 cash selling rates (reference):

• Taiwan Bank: 0.2060 (no fee)
• E.SUN Bank: 0.2067 (NT$100 per transaction)
• Taipei Fubon Bank: 0.2069 (NT$100 per transaction)
• Cathay United Bank: 0.2063 (NT$200 per transaction)

Exchanging NT$50,000, the spread alone costs NT$1,500-2,000.

Estimated cost: 2% rate difference + NT$0-200 fee = total NT$1,500-2,000.

Option 4: Online currency exchange with account holding and phased withdrawals (favorite among investors)

Suitable for: Those experienced in forex investing and planning to hold yen long-term.

Use bank app or online banking to convert NT$ to yen at the “spot sell rate” (about 1% better than cash sell rate), deposit into a foreign currency account. If later needing cash, withdraw in person or via foreign ATM, incurring additional forex spread fees (~NT$100+).

Advantages include 24/7 operation, allowing you to observe exchange rate trends and buy in phases. For example, when NT$ to yen drops below 4.80, buy gradually to average the cost. This method is especially suitable for those investing in yen deposits (current annual interest 1.5-1.8%) or yen ETFs.

Estimated cost: Better exchange rate initially, but withdrawal fees later, estimated loss NT$500-1,000.

Cost comparison table for NT$50,000 exchange: see at a glance who is most cost-effective

For small amounts (NT$50,000-200,000), the most recommended combo is “online exchange + airport in-branch pickup,” which balances cost and safety.

After exchanging yen, don’t just leave it idle: 4 ways to grow your money

Once you have yen, don’t let it sit idle without earning interest. Choose investment based on your purpose:

1. Yen fixed deposit (conservative)

E.SUN, Taiwan Bank, etc., offer foreign currency accounts starting from 10,000 yen, with annual interest rates of 1.5-1.8%. Suitable for 3-12 months, risk-free, stable returns. For example, 10,000 yen (~NT$2,000) yields NT$30-36 per year—small but cost-free.

2. Yen insurance policies (medium-term holding)

Cathay, Fubon life offer foreign currency savings insurance with guaranteed rates of 2-3%, for 3-5 years. Suitable for those wanting insurance and preservation, but with lock-in periods.

3. Yen ETFs (growth-oriented)

Yuanta 00675U, 00703, tracking yen indices, can be bought as fractional shares via broker apps, suitable for dollar-cost averaging. Management fee about 0.4%. Long-term, as BOJ raises rates, yen appreciation potential is high.

4. USD/JPY, EUR/JPY forex trading (short-term swings)

Trade yen against USD or EUR directly on forex platforms, with 24-hour buy/sell. Suitable for those with market knowledge and risk appetite.

While yen is a safe-haven, it also fluctuates bidirectionally. During the Russia-Ukraine conflict in 2022, yen appreciated 8% in a week; but global arbitrage unwinding or geopolitical tensions (Taiwan Strait, Middle East) could depress it. Beginners should start with deposits, then gradually explore ETFs and forex trading.

Important updates for 2025: withdrawal limits and anti-fraud measures

From October 2025, many banks will strengthen anti-fraud measures, imposing new limits on foreign currency ATM withdrawals:

• Third-tier digital accounts: daily limit reduced from NT$200,000 to NT$100,000
• CTBC Bank: daily limit NT$120,000 for own card, other bank cards depend on issuing bank
• Taishin Bank: daily NT$150,000 for own card, NT$20,000 per transaction for others
• E.SUN Bank: daily NT$150,000 (including card spending), NT$20,000 per transaction for others

Advice: For large exchanges (over NT$100,000), consider splitting withdrawals or using your own bank card to avoid cross-bank fees. During peak times (airports, year-end), cash may run out quickly—plan ahead.

FAQs

Q: How much is the difference between cash rate and spot rate?

Cash rate applies to cash exchange, usually 1-2% worse than spot rate, reflecting bank exchange risk and labor costs. Spot rate is settled T+2 electronically, closer to international market price, suitable for account transfers and non-cash transactions.

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

Using the formula: Yen amount = NT$ amount × current rate. As of December 10, 2025, Taiwan Bank rate 4.85, NT$10,000 ≈ 48,500 yen. Using spot rate 4.87, ≈ 48,700 yen, difference about 200 yen (NT$40).

Q: What documents are needed for in-branch exchange?

Taiwanese: ID card + passport; foreigners: passport + residence permit. Company representatives: business registration. For online booking, also bring transaction notice. Under 20: parental consent required; large amounts (>NT$100,000) may require source of funds declaration.

Summary: Now is a good time to exchange yen

The yen is no longer just for travel “pocket money” but also an asset with hedging and investment value. Factors like NT dollar depreciation, BOJ rate hikes, and global market volatility make yen an important asset allocation in 2025.

Follow the principles of gradual exchange + not leaving money idle to lock in favorable rates at minimal cost. Beginners can start with “online exchange + airport pickup” or “foreign currency ATM,” then move into deposits, ETFs, or forex trading based on needs. This way, you can enjoy cost-effective travel and add a layer of protection during market turbulence.