If you're staying in China a while, especially if you're working in China, a Chinese bank account would be a very useful thing to have. However, you will soon find that banking in China is very tightly controlled, and getting things done is (probably) not as easy as with a bank in your own country.
In this article, of course, China refers to Mainland China: banking in HK, and to a lesser extent in Macau, is still much freer and the service is similar to, if not better than, in Western countries. Taiwan offers something in between. For all you need to know to open a bank account in China and use a China bank's main services, read on…
Contents
- Opening a Bank Account in China
- Using Internet/App Banking in China
- Using Your China Bank Card/Cash
- Payment by App: Binding Your Bank Account
- Keeping Your Bank Informed
- Transferring in Money from Abroad
- Transferring Your Money out of China
Opening a Bank Account in China
This is not as simple as you might think, but the challenges will most probably be worth it. Though the major Mainland banks offer a similar service, the difference between small branch and large, small city and large, is great. So, choosing where you bank should be given some thought.
Why Open a China Bank Account?
Probably the top reason must be to use China's two app payment giants WeChat Pay and Alipay, via a tethered bank account. Though international bank accounts can be linked to these apps, their functionality is limited compared to China's bank's.
The next most popular reason, and perhaps the obvious one for you, is so that you can get paid your salary by the school/university/company you work at in China. Most institutions just use one bank, usually governed by their industry sector, e.g. many service industries use the Bank of Communications and government institutions use the Bank of China.
Our cover-all third reason is to keep your money somewhere safe and take advantage of China's bank networks' various other advantages: Internet banking, ATMs, card payments, bank statements, generous interest rates on savings accounts… without having to pay international banking fees, unfavorable exchange rates, or risk having your Visa/Mastercard/… refused.
Which Bank to Choose?
Unless your company has a preferred bank (which they usually do as banking in China is bureaucratic enough without getting more than one bank involved), any of the major banks will do:
- Bank of China (BoC 中国银行, the oldest and "most international" of Mainland China's major banks offers the best chance of finding English-speaking staff)
- Industrial and Commercial Bank of China (ICBC 中国工商银行, largest China bank by assets)
- China Construction Bank (CCB中国建设银行, second largest by assets)
- Agricultural Bank of China (ABC 中国农业银行, third wealthiest and more popular in rural areas)
- Bank of Communications (BoCom 交通银行, fifth largest in Mainland China, and another of the oldest)
It would be advisable to choose a bank with a branch near to where you live. Most (non-Internet) banking can be done at your local branch, though some things like transferring your money overseas may require the head branch of the bank in your city.
You may also want to check what limits banks set on transferring money and what services they can offer you (statements in English, English-speaking staff, Internet banking app in English?) before making your final choice. This may be particularly important if you're opening a business in China!
What You Need to Open a Chinese Bank Account
Bring your passport! Every time you go to a Chinese bank, bring your passport. You can hardly do anything at a bank without it. If you're in the process of updating a Residence Permit and your passport is at the Entry-Exit Bureau, then bring the receipt with your passport details — the "passport stand-in" they give you. Thankfully, the need to bring passport photocopies has become a thing of the past as banks have their own photocopiers, scanners, etc. now, or have become more willing to use them.
You'll also need a China phone number. As all bank accounts need contact details and their apps rely on text message verification codes, you'll need a China SIM card.
You should also bring your work permit / student card in case it is asked for.
Proof of residence/address may be asked for. Your residence permit will show that. You may need something with your address on like an Accommodation Registration Form (住宿登记单 — something you should get if you live anywhere outside a hotel or school/university/business accommodation), though statements and correspondence are seldom sent to an address in China. It is not strictly necessary to have a residential address to open a bank account in China.
You'll also need some Chinese cash for initial formalities: buying a bank card (up to 50 yuan), making an initial deposit (10–100 yuan), etc.
You may also want to bring a Chinese-speaking friend (a translator) to help you if your Chinese isn't up to it. It should be possible to get by in most larger branches of city banks, as usually a member of the banking staff has at least basic English skills and phone apps can be used to translate.
A good translation/dictionary app on a smart phone is often of great help to those with middling-level Chinese, as there will usually be something that you need to write/say in Chinese, and you can't quite remember how, when banking in China.
To be super-prepared you could think what you want your 6-digit bank card passcode to be, so that you're not put on the spot and end up choosing something you forget or you later want to change.
If you want to use Internet banking an 8+-character alpha-numeric password will be required for the app/website login. Have that ready if you don't like making them up quickly.
Finally, set aside a few hours to get the job done (it can be a short process, but usually it is not). Ideally, aim to arrive when the bank opens in the morning. Bear in mind, banks usually don't open on weekends in China.
Steps to Opening a China Bank Account: At the Bank
Enter the bank and get a queuing number from the machine (and then keep an eye out for your number to come up on the red LED board and be announced) or go to the information desk for assistance. You may have to wait a long time: typically 20–30 minutes per procedure. This is normal for China banking, and this is better than what it was 10 years ago.
Explain that you want to open a bank account (我想开户). You'll then be given a form to fill in, probably after being asked to show your passport, which staff may take away to photocopy for you.
Fill in the 'Opening a New Account Form' as best you can. It's particularly important to get your passport details and phone number correct. Some of it may be unnecessary and the bank staff should be able to help you with writing Chinese and any questions you have. ALWAYS ASK if unsure to save you having to fill in the form again or unnecessarily. There may come a point where you need to resort to asking for translation help or pulling out your translation app. Don't worry: bank staff are patient and everyone knows banking in China takes ages.
Activate your bank card. Once your information has been gathered and inputted and your documents have been checked and scanned/photocopied, and you've paid any initial deposits and fees, you'll be given a bank card. To activate it you'll need to key in a 6-digit passcode of your choosing. You should then have an operational China bank account, but sometimes it may take a few days to authorize.
Keep your bank card safe and available. You will also be given some documents about your account stamped with the bank's seal. You will probably never need these again, but you will need your bank card every time you do anything else at the bank.
Using Internet/App Banking in China
Once you have a China bank account, to use online banking, all you need to do is ask for an account to be set up.
You will need to fill in another form. Maybe this will be on a computer or one of their touchscreen interfaces or on your phone (for the app). A member of staff will talk you through setting up an online banking account. After selecting 'register for an account' on the bank's website or downloading their banking app (or both), you'l need to set up your password and receive a verification code via your China SIM card.
Password and China phone number verification code are the standard way to log in, so using China Internet banking outside China is usually impossible. Some China bank apps won' even open outside China.
Internet/app banking is a convenient way to check/use your bank account. It saves a trip to the bank for routine procedures like making a payment or a standing order. For a printout of your transactions that has legal value, though, you will have to go to your bank and get it printed out and stamped with their seal.
It is recommended for important transactions that you would like a legal record for. WeChat/Alipay transactions, while they do have a legal standing, and even though deals agreed on their chat function can be legally binding, you would still be relying on a third party to keep your records, which could be very awkward if you lose access to your account for some reason or you (accidently) delete a chat/contact. Using China banking, your records are safe and you have more recourse to prove or recoup a payment.
Remote banking is more awkward and time consuming than WeChat/Alipay payment. You'l need to enter the payee' China bank account details and authorize the payment via a texted code from your bank. However, it is useful for formal repeat payments though, like paying rent or bills (see Renting an Apartment in China: An Expat Guide for more on that) etc., as you get a good legally sound record of transactions that can't be lost with your phone or app account, so it' safer.
Using Your China Bank Card and Cash
If you still use cash in China, which very few people do now, your bank card can be used can be used for withdrawals from any ATM in Mainland China, as long as it is linked with the UnionPay network, which almost all of them are.
China bank cards can be swiped for payment. Both passcode entry and a signature on carbon-copy receipt are usually required.
Tap-to-pay or pay by phone call and security strip isn't usually offered for Chinese (or foreign) cards on China' Mainland. This is typical of China' bureaucratic banking, where a trip to the bank often entails lengthy queues and processes. China' banks have not been as free as the tech sector to make life easier for the customer.
For more on cash and cards (from a travelers'perspective), see our page on A Practical Guide to Chinese Money.
Keeping Your Bank Informed of Your Personal Details
Thankfully, if you move address, you do not need to make a trip to your China bank, as this is not essential information for personal bank accounts (it is for business accounts). It is enough.
However, a change of phone number must be reported. You may get text messages from the bank asking you to come in and update your details. These are usually blanket messages directed at Chinese customers, and the author has found that they can be ignored. But if you change your phone number, this must be changed on their system via an in-person visit to your bank for you to continue to use your online account and receive other communications from your bank.
Also, a change in passport details must be entered at the bank. Your bank account can be blocked due to expiry of your passport ID in their system. If you have renewed your passport or replaced it, go into your bank with your old and new passports if possible, and get it updated on their system as your passport is THE means of identifying you for banking purposes.
Apart from an in-person visit, there is no other way of doing things like this with China banking. A letter, phone call, email, or Internet/app banking message will not be accepted.
Payment by App: Binding Your Bank Account
Tencent's WeChat and Alibaba's AliPay are China's two app payment giants . They're standard on all China smartphones. The reason many people get a China bank account is to have easy access to their services, as tethering a China bank account is by far the most compatible way to activate payment by app giant.
Binding a China Bank Account to WeChat/Alipay
While there are other ways of charging your WeChat Wallet or Alipay balance, linking a China bank account is the smoothest way to get them operating and effortlessly keep them operating.
The binding process, which is similar on both WeChat and Alipay, is a mere six steps and can be done in under five minutes (it is impossible to do anything in a China bank in this time!). Basically, find 'Add a card', enter your bank details and phone number, and verify by text code. Then you're good to go.
It is little wonder that China's super apps are more popular than traditional payment methods and banking in China! Everything using these tech giants is two or three times faster and ten times slicker and cooler than directly using China's banking system. But don't forget, China's bureaucratic banking entities are the solid, though sluggish, foundation that payment apps need to operate at their best.
For More on Payment by App
As this is a vast topic, and the popular "alternative" to China banking, we have another article covering app payment. So, for more on that, including more detail on getting it set up, paying by QR code, how to pay by app money transfer, and how to shop online in China, see our Payment Methods in China: Expat Guide.
Transferring Money from Abroad to a China Bank Account
If you are running short of money in China or want to transfer some money over to invest, etc., the safest way is via international bank transfer.
You can transfer money to one of the larger China banks using your foreign account's Internet banking platform and SWIFT/IBAN code of your China bank with other details. Other people can also transfer money to you using their foreign banks.
The limit is the equivalent of US$50,000 per person per day with a fee of 1% for the transfer.
Transferring Your Money from a China Bank to Another Country
The safest and most practical way to move your money abroad is via bank transfer, at least within certain limits. Note: you are only allowed to take the equivalent of 5,000 USD of foreign currency or 20,000 RMB in Chinese currency in or out of Mainland China on your person.
Rules
Foreigners are limited to transferring the equivalent of their taxed year's salary abroad. So, if you are planning to move back to your home country, you may find that you cannot move all your savings across via your bank in one go.
There are alternatives, like Western Union and asking for help from a friend. The most regular option would be your Chinese spouse if you have one. Chinese people are limited to sending the equivalent of US$50,000 out of China per year.
Procedure
For you to send your money overseas from your China bank, you would probably need to go to the head branch of that bank in your city and find its international banking department. To make the transfer you would need to produce documentation of
- your right to work (your work permit),
- proof of employment (a letter from your company saying that you worked there for the period in question),
- records of your salary for the year, and
- proof of tax paid on that amount.
The human resources and finance department of your employer should be able to help you with that.
China Highlights Is Here to Help
Are you having trouble with life in China or traveling around? You may want to seek help from the China travel company with the most excellent TripAdvisor reviews from overseas travelers/expats. We at China Highlights have lots of experience with banking in China, being in business for over 23 years. Feel free to pay for a trip with us by China bank account, foreign bank account, or PayPal… even WeChat. Contact us.
Want to escape the stresses of China, like banking, and discover more of China's highlights? See our tours designed for expats.