Is it worthwhile to have a fixed deposit in Japanese Yen? 2025 Taiwanese Dollar to Japanese Yen Investment and Practical Guide

The Japanese Yen is Appreciating, Now is a Good Time to Exchange Currency

As of December 10, 2025, the TWD to JPY exchange rate reached 4.85, up 8.7% from 4.46 at the beginning of the year. This wave of appreciation is no coincidence—it is driven by the hawkish stance of the Bank of Japan(BOJ). Recently, BOJ Governor Ueda Kazuo stated that the market expects an 80% chance of interest rate hikes, with the December 19 meeting expected to raise rates by 0.25 basis points to 0.75% (a 30-year high). Japanese government bond yields have broken through 1.93%, reaching a 17-year high.

Meanwhile, the US-Japan interest rate differential remains around 4.0%, what does this mean for Taiwanese investors? It’s not just about currency gains from travel and shopping, but also a hedging opportunity against Taiwan stock market volatility. According to market data, Taiwan’s currency exchange demand in the second half of the year grew by 25%, with over 60% coming from hedging and fixed deposit needs rather than just travel.

Why Transfer Funds into Japanese Yen? Three Core Reasons

Reason 1: Safe-Haven Currency Attribute

The Japanese Yen is one of the world’s three major safe-haven currencies, alongside the US dollar and Swiss franc. During market turbulence, funds naturally flow into the Yen—during the Russia-Ukraine conflict in 2022, the Yen appreciated 8% in one week, effectively buffering stock market declines. For Taiwanese investors, allocating part of their funds into Yen is like buying an extra “risk insurance.”

Reason 2: Attractive Fixed Deposit Returns

Taiwanese banks currently offer annual interest rates on Yen fixed deposits between 1.5% and 1.8%. For example, 100,000 Yen (about NT$2,060) can earn 1,500-1,800 Yen in interest per year. Although the amount seems small, it’s risk-free principal and interest is compounded automatically. Compared to most NT$ savings accounts with interest below 1%, Yen fixed deposits are a relatively conservative and worthwhile allocation.

Reason 3: Currency Appreciation Gains

If Yen continues to appreciate (market forecasts suggest USD/JPY below 150 in the medium term), exchanging into Yen not only locks in fixed deposit gains but also benefits from exchange rate appreciation. Assuming a 3-5% appreciation, on NT$50,000, you could earn an extra NT$1,500-2,500—enough to offset any currency exchange fees.

Four Ways to Exchange Yen in Taiwan: Costs and Suitable Scenarios

Method 1: In-Person Cash Exchange—Most Traditional but Costliest

Bring NT$ cash to a bank or airport counter to exchange for Yen notes. For example, Taiwan Bank’s cash selling rate is about 0.2060 (1 NT$ = 4.85 Yen), which is 1-2% worse than the international market rate. Plus, some banks charge a handling fee of NT$100-200, making the total cost for NT$50,000 around NT$1,500-2,000.

Suitable for: Travelers unfamiliar with online operations or needing small, urgent cash withdrawals.

Method 2: Online Currency Exchange, Cash Pickup—A Middle Ground

Use bank app to convert NT$ into Yen and deposit into a foreign currency account, using the “spot selling rate” (about 1% better than cash rate). If cash is needed, withdraw at counters or ATMs. This method allows observing favorable rates (e.g., NT$ to Yen below 4.80) for staged entry. Withdrawal fees are about NT$100-200, saving hundreds compared to direct counter exchange.

Cost: Exchanging NT$50,000 results in a loss of NT$500-1,000.

Suitable for: Investors experienced in forex, planning to hold Yen long-term, and possibly transferring Yen into fixed deposits for higher returns.

Method 3: Online Currency Settlement, Airport Pickup—Most Cost-Effective for Travel

No need for a foreign currency account; simply reserve online via bank website, complete remittance, then bring ID and transaction notice to airport counter for pickup. Taiwan Bank’s “Easy Purchase” online settlement is completely free (NT$10 if paid via TaiwanPay), with a rate premium of about 0.5%. Taoyuan Airport has 14 Taiwan Bank outlets, including 2 open 24 hours.

Cost: NT$50,000 exchange costs about NT$300-800 in losses.

Suitable for: Travelers with planned trips who want to pick up cash directly at the airport—most efficient before departure.

Method 4: Foreign Currency ATM Withdrawal—Most Flexible but Limited Locations

Use chip-enabled bank card at foreign currency ATMs to withdraw Yen, operating 24/7, with a cross-bank fee of NT$5. The Fubon Bank foreign currency ATM deducts directly from NT$ account, with a daily limit of NT$150,000 and no exchange fee. However, only about 200 ATMs nationwide, and cash may run out during peak times.

Cost: NT$50,000 exchange results in a loss of NT$800-1,200.

Suitable for: Office workers or those who can’t visit banks frequently, needing urgent cash.

Is Yen Fixed Deposit a Good Investment? Detailed Return Analysis

After exchanging into Yen, don’t let the money sit idle with no interest—consider four allocation options:

1. Yen Fixed Deposit—The Conservative Choice

E.SUN, Taiwan Bank, and others offer Yen fixed deposits starting from NT$10,000 principal, with annual interest rates of 1.5-1.8%. For example, NT$50,000 in a 1-year Yen fixed deposit yields about 750-900 Yen in interest (roughly NT$15-18). Although small, it’s a risk-free return with no transaction tax. For conservative investors, is Yen fixed deposit a good choice? Yes—suitable for small-scale family finance, especially when the NT$ faces depreciation pressure.

2. Yen Insurance Policies—Medium-Term Holding

Cathay, Fubon Life offer Yen savings insurance with guaranteed interest rates of 2-3%, locking in for 3-5 years. Suitable for long-term planners with idle funds.

3. Yen ETFs—Growth-Oriented Allocation

Yuanta 00675U tracks Yen indices, with management fees of 0.4% per year, and can be bought as fractional shares via broker apps. Suitable for dollar-cost averaging and capturing Yen appreciation through market swings.

4. Forex Swing Trading—High Risk, High Return

Trade USD/JPY(USD/JPY) or EUR/JPY(EUR/JPY) directly via forex platforms, supporting long/short positions and 24-hour trading with small capital. Suitable for experienced traders.

Is Now a Good Time to Exchange Yen? Exchange Rate Trend Analysis

Short-term(1-3 months): USD/JPY fluctuates between 154-156, possibly touching 155, but unlikely to break above 160.
Medium-term(3-12 months): BOJ rate hikes and Fed rate cuts will strengthen Yen, with USD/JPY forecast below 150.
Risks: Global arbitrage unwinding or geopolitical conflicts(Taiwan Strait/Middle East) may temporarily weaken Yen.

Conclusion: Exchanging Yen now is indeed advantageous, but it’s recommended to do so in stages rather than all at once, to average costs and reduce volatility.

Common Questions About Currency Exchange in Taiwan

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

Cash rate is the bank’s buy/sell rate for physical cash, usually worse than the market rate but immediate. Spot rate(T+2) is the international market rate for non-cash settlement, closer to global prices but requires waiting for settlement.

Q: How much Yen can I get with NT$10,000?

Based on Taiwan Bank’s rate on December 10, 2025, NT$10,000 at cash rate yields about 48,500 Yen; at spot rate, about 48,700 Yen—difference of roughly 200 Yen (about NT$40).

Q: What do I need to bring for counter exchange?

Taiwanese citizens: ID card + passport; foreigners: passport + residence permit. If pre-booked online, also bring transaction notice. Under 20 years old need parental accompaniment; amounts over NT$100,000 may require source of funds declaration.

Q: What’s the limit for foreign currency ATM withdrawals?

Post-2025 regulations, most banks set single withdrawal limits at NT$50,000-150,000 equivalent, with daily limits of NT$100,000-150,000. It’s advisable to split withdrawals or use your own bank card to avoid cross-bank fees of NT$5 per transaction. During peak times(airport) cash may run out, so plan ahead.

Summary: Two Golden Rules for Yen Investment

Yen has evolved from a simple travel “pocket money” to an asset with hedging functions. Whether preparing for a trip to Japan next year or hedging against NT$ depreciation, mastering “staged exchange + fixed deposit gains” can minimize costs and maximize returns.

For beginners, start with “Taiwan Bank online settlement + airport pickup” or “foreign currency ATM,” then transfer part of the Yen into fixed deposits earning 1.5-1.8% annual interest for stable income. Remaining funds can be allocated to ETFs or monitored for market swings based on risk appetite. This way, you can enjoy more cost-effective travel and added protection during global market turbulence.