Local knowledge: How to open a bank account

(China Daily)
Updated: 2009-10-26 09:54

If you want to skip the 4 percent service fee charged on your foreign debit or credit card every time you use it in China, get yourself a Chinese bank account. It's also safer than keeping all your money in a hotel or carrying it with you. ATMs are available 24 hours in the city. Here's the tips on how to open a bank account, exchange currencies and wire money overseas.

How to open a bank account?

The only thing you need to open a Chinese bank account in most banks is your passport, and, according to some sources, a residence permit if you have it.

Popular Chinese banks include Bank of China, China Merchants Bank and China Construction Bank.

To open a Renminbi account, you have to pay a deposit of 16 yuan in most banks. Opening an account with US dollars will require between $100 and $500.

Agricultural Bank of China (ABC) requires a minimum of $100. The bank is also the official bank for Western Union in China.

Where to exchange currencies?

You can exchange currencies in most major banks, hotels and some large department stores. Make sure you have your passport with you. In these places the rate is the official rate. Keep the receipt when you exchange money, as you will need it if you plan to change back later on.

Even though you might get a better rate by exchanging currency with people on the street, it's risky and illegal.

How to send money overseas?

You can wire money overseas through a bank, but you are not permitted to send more money than your salary in China back home every month.

Remember that your employer may only report a portion of your salary as payment to you and the rest will be reported as a housing allowance.

MoneyGram and Western Union can also help you transfer money. MoneyGram can be found in Industrial and Commercial Bank of China and China International Trust and Investment company.