Decoding the Cost of 10,000 Yen: Which of the 4 TWD Currency Exchange Methods Saves the Most Money

By the end of 2025, the exchange rate of the New Taiwan Dollar (NTD) against the Japanese Yen (JPY) has reached 4.85, rekindling the demand for traveling abroad and investing in Yen. But do you know? Converting 10,000 Yen back to NTD through different methods may actually cost you hundreds of dollars more or less. This article provides an in-depth analysis of the true cost structures of Taiwan’s four major currency exchange channels, helping you find the most cost-effective way to exchange.

Why Is Yen Investment Heating Up?

Since the beginning of the year, the NTD has appreciated about 8.7% against the Yen, fueling a currency exchange boom. Not only tourists, but investors are also paying attention—Yen is long ranked among the top three global safe-haven currencies (alongside USD and Swiss Franc). During market volatility, funds tend to flow into Yen for safety. During the Russia-Ukraine conflict in 2022, Yen appreciated 8% within a week, while global stock markets fell by 10%. For Taiwanese investors, holding Yen is not just for travel but also a tool to hedge against Taiwan stock risks.

Additionally, the Bank of Japan’s rate hike expectations are rising. Governor Ueda Kazuo recently made hawkish comments, pushing market expectations of rate hikes to 80%, with a projected increase to 0.75% at the December 19 meeting (a 30-year high). Japanese government bond yields have hit a 17-year high of 1.93%, making Yen fixed deposits (1.5-1.8%) relatively attractive.

Converting 10,000 Yen to NTD: Comparing the Four Major Channels

Many people think currency exchange channels are similar, but their fee structures vary greatly. Using 10,000 Yen as a baseline, we analyze the actual costs of each channel.

Channel 1: Bank Counter Cash Exchange — The Most Traditional but Most Expensive

Carrying cash to a bank or airport counter to exchange Yen is the most straightforward method. However, banks use the “cash selling rate” (about 1-2% worse than the spot rate), plus possible service fees, making it costly.

For example, Taiwan Bank’s rate on December 10, 2025, is about 0.2060 NTD per Yen. To exchange 10,000 Yen, you pay 2,060 NTD. Compared to the spot rate of 0.2070 (some banks offer), you pay about 100 NTD more. Additionally, institutions like E.SUN Bank and Cathay United Bank charge fixed fees of 100-200 NTD.

Cost Calculation (10,000 Yen):

• Taiwan Bank: 2060 NTD + 0 fee = 2060 NTD
• E.SUN Bank: 2067 NTD + 100 fee = 2167 NTD
• Cathay United Bank: 2063 NTD + 200 fee = 2263 NTD

Advantages: Safe, full denomination, staff assistance.
Disadvantages: Exchange rate spread, limited business hours (9:00-15:30 on weekdays), higher costs due to fees.
Suitable for: Users unfamiliar with online operations, small urgent exchanges, airport backup.

Channel 2: Online Currency Transfer — A Middle Ground

Use online banking or app to convert NTD into Yen and deposit into a foreign currency account, enjoying the “spot sell rate” (about 1% better than cash selling rate). However, withdrawing cash incurs additional fees. For example, E.SUN Bank charges a fee equal to the difference between spot and cash rates, starting at 100 NTD.

Cost Calculation (10,000 Yen, needing cash withdrawal):

• Online exchange rate: 0.2070 NTD per Yen = 2,070 NTD
• Withdrawal fee: 100 NTD
• Total cost: 2,170 NTD

Advantages: 24-hour operation, can buy in installments to average costs, relatively favorable rates.
Disadvantages: Need to open a foreign currency account first, withdrawal fees apply, interbank transfer fees (5-100 NTD).
Suitable for: Those experienced with forex, using foreign currency accounts regularly, or planning Yen fixed deposits.

Channel 3: Online Currency Conversion with In-Branch Pickup — The Planning Choice

No need to open a foreign currency account in advance. Simply fill in currency, amount, pickup branch, and date on the bank’s website. After transfer, bring ID and transaction notice to the branch for pickup. Taiwan Bank’s “Easy Purchase” online exchange rate offers about 0.5% discount, and paying via Taiwan Pay costs only 10 NTD (often free).

Cost Calculation (10,000 Yen):

• Online exchange rate: 0.2065 NTD per Yen = 2,065 NTD
• Service fee: 0-10 NTD (usually free)
• Total cost: 2,065-2,075 NTD

Key Advantages: Taoyuan Airport has 14 Taiwan Bank branches (including 2 24-hour branches), allowing pre-arranged airport pickup, so you can get cash before departure, avoiding queues.

Disadvantages: Need to book 1-3 days in advance, limited by operating hours, branches cannot be changed once booked.
Suitable for: Well-planned travelers, those preparing before departure, wanting to pick up cash at the airport.

Channel 4: Foreign Currency ATM Withdrawal — 24/7 Convenience

Use chip-enabled financial cards at foreign currency ATMs to withdraw Yen cash, supporting 24-hour operation. Cross-bank withdrawals cost only 5 NTD. E.SUN Bank’s foreign currency ATMs allow direct withdrawal from TWD accounts, with a daily limit of 150,000 TWD, no exchange fee.

Cost Calculation (10,000 Yen, approx. 2,060 TWD deduction):

• Deducted from TWD account: 2,060 NTD
• Cross-bank fee (if applicable): 5 NTD
• Total cost: 2,065 NTD

Advantages: Instant withdrawal, high flexibility, low cross-bank fee.
Disadvantages: Limited locations (~200 nationwide), fixed denominations (1,000/5,000/10,000 Yen), cash may run out during peak hours.
Suitable for: Those with no time to visit banks, urgent needs, nearby foreign currency ATMs.

Cross-Channel Cost Comparison

Using 10,000 Yen as a baseline, revealing the actual expenses of each channel:

Conclusion: Online currency exchange and ATMs are the cheapest (~2065-2075 NTD), while counter cash exchange is the most expensive (up to 2263 NTD), with a difference of nearly 200 NTD. For small exchanges of 10,000 Yen, choosing the right channel can save 5-10% of costs.

Is Now a Good Time to Exchange Yen?

As of December 10, 2025, the NTD/JPY rate is 4.85. Compared to 4.46 at the start of the year, this is an 8.7% appreciation, offering considerable exchange gains for Taiwanese investors. In the second half of the year, currency exchange demand increased by 25%, mainly driven by travel recovery and hedging needs.

However, the rate remains volatile. USD/JPY dropped from a high of 160 at the start of the year to 154.58 now. Short-term fluctuations may bring it back to around 155, but medium to long-term forecasts suggest it will stay below 150. For investment purposes, Yen remains a safe haven, but short-term arbitrage may face 2-5% volatility.

Suggested Strategy: Use installment exchange to avoid converting all at once. If planning to invest 10,000 Yen, consider entering at different exchange rates to reduce costs.

Post-Exchange Value-Adding Ideas

Once you have Yen, don’t let it sit idle without interest. Consider stable income or growth investments, such as:

Yen Fixed Deposit: The most stable, available via E.SUN or Taiwan Bank foreign currency accounts, starting from 10,000 Yen, with annual interest rates of 1.5-1.8%. For 10,000 Yen at 1.6%, annual interest is about 160 Yen.

Yen Insurance Policies: Medium-term holding, with Cathay and Fubon Life offering guaranteed rates of 2-3%, suitable for 3-5 year plans.

Yen ETFs (00675U, 00703): Growth options, e.g., Yuanta 00675U tracking Yen index, can be bought as fractional shares via broker apps, with an annual management fee of 0.4%.

Forex Swing Trading: Trade USD/JPY or EUR/JPY to capture exchange rate fluctuations. Benefits include two-way trading, 24-hour market, and small capital requirements.

Yen is a strong hedge, but also subject to two-way volatility. Rate hikes by the Bank of Japan are bullish, but global arbitrage unwinding or geopolitical conflicts may suppress prices. Diversifying with Yen ETFs or engaging in swing trading requires careful risk assessment.

Quick FAQs

Q: What’s the difference between cash rate and spot rate?
Cash Rate applies to physical cash transactions, with the advantage of immediate delivery but usually 1-2% worse than the spot rate. Spot Rate is used for electronic transfers, closer to international market prices, but settlement takes T+2 days.

Q: How much Yen can I get with 10,000 TWD?
Using Taiwan Bank’s spot sell rate of 4.87, about 48,700 Yen; with cash sell rate of 4.85, about 48,500 Yen—difference of roughly 200 Yen.

Q: What ID do I need for counter exchange?
ID card + passport (foreigners bring passport + residence permit). For online booking, also bring transaction notice. Under 20 needs parent’s accompaniment; large amounts (>100,000 TWD) may require source of funds declaration.

Q: What’s the limit for foreign currency ATM withdrawals?
From October 2025, many banks have adjusted limits. CTBC, Taishin Bank: about 120,000-150,000 TWD per day; E.SUN: 150,000 TWD daily. During peak hours, cash may run out quickly—plan ahead or split withdrawals.

Summary

Yen is no longer just for travel pocket money but also an asset with hedging and investment value. Whether exchanging 10,000 Yen or more, choosing the right channel can save 5-10% of costs. Beginners are advised to start with “online exchange + airport pickup” or “foreign currency ATM,” then, after securing the Yen, consider fixed deposits, ETFs, or swing trading based on needs.

Mastering the principles of installment exchange and not leaving the position idle will not only make your trips more cost-effective but also add a layer of protection amid global market fluctuations.