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Living in Shanghai
Ni hao and a warm welcome to our expat community in Shanghai! Get to know this city before you start your real life here. From accommodation to kids’ education, from banking and internet connection to where to shop and eat, see advice and information from iReloChina’s experts here.
Expats can open a Chinese bank account relatively easily. Here is a quick guide to help you to open it.
If you are in China for business, studies or for any other reason that requires you to stay in the country long-term, you will need to open a bank account. First, it is important to know that you cannot use your foreign credit card everywhere in China. For instance, you cannot use it for taxis or supermarkets. Foreign bank cards can only be used in hotels, some restaurants and shopping centers. Furthermore, most banks charge an international ATM withdrawal fee. Paying with your foreign bank card also often incurs fees, such as an international currency exchange fee, which is usually about 3%. The commissions for exchanging money or withdrawing money at Chinese banks are much smaller if you have a Chinese bank account.
Having a Chinese bank card is basically a necessity. You can withdraw, and even deposit cash in some ATMs, but the most useful part of having a Chinese bank card is the ability to link it with mobile payment services such as WeChat and Alipay—which are almost universally accepted across China. These payment platforms allow you to order taxis or takeout, and even book hotels and flights. WeChat wallet and Alipay are so ubiquitous, you may never actually have to use your physical bank card.
If you don’t speak Chinese, it may be a good idea to ask a local friend or a colleague to go to the bank with you. Most bank branches in the city center will have English speaking staff, but as you get further away from the center this is less and less likely. First, you will have to fill out an account opening application form. You must ensure that there are no spelling errors in your name, which would otherwise cause problems when you use online banking or mobile payment platforms. The only required documentation is your passport and proof of residence (which you receive from the police after registration), along with your Chinese phone number and a first deposit. The employment pass, student pass or work permit are sometimes required, so it may be better to bring them in anticipation. Application fees should not exceed 40 RMB (Some banks, like ICBC, might make you pay around 15 RMB for the card). The process is usually instantaneous and your debit card should work as soon as you finish the application at the bank. You will have to sign a few other documents and choose a six-digit password.
Note If you want to manage your bank account online or via an app, or make purchases online, you will need to specify this to the banker, otherwise it won’t work.
Some Chinese banks may have partnerships with banks in your home country, so it is worth doing a little research to find out. If you choose Bank of China, you can easily proceed to electronic money transfer from your foreign account to your local account because this bank allows IBAN and SWIFT transfers. However, money transfers from China to your foreign account are controlled. Generally speaking, you are allowed to transfer the equivalent of $500/month without much trouble. Any higher amounts require proof of income and pay stubs with tax information.
Below is a list of reputable banks that are experienced in dealing with expats:
Another important factor to consider when choosing your bank is convenience. You should choose the nearest bank branch of your neighborhood or of your office because your account will be tied to the specific branch in which you open it. If you encounter a problem such as the loss of your bank card or if you need to change your password, you will need to go back to this specific branch.
• You will be charged 2 RMB for each withdrawal from another bank.
• For most travelers, using cash is the easiest way to pay for many things in China.
• Withdrawal from ATMs generally cannot exceed 2500 RMB for each transaction. If you need to initiate a second withdrawal, you will be charged a separate fee for each one.
• You can withdraw money from your foreign credit card only in some ATMs in China bearing the PLUS or CIRCUS logos.
• If you plan to open a bank account in China, you must read the terms and conditions carefully, especially the section on banking fees and charges. You can find it on the websites of the banks. You can check it out and do a comparison with other banks before choosing your bank.
