Don't Send Money to China Until You Know About the Banking System By Jason Karp
If you plan to move to China from the U.S., there will obviously be many differences. One major departure from the United States is the financial system. Realizing how China's works, as well as the best way to bank and send money before moving, is a good idea.
Chinese currency is Renmibi, or RMB, and the main unit is the Yuan. You should know that banks are not used as widely there as they are in the U.S., and many people do not even have a bank account at all. If you don't like dealing with banks, you'll find them easy to avoid in China, where many employers even pay in cash. Banking is rising in popularity, though, along with credit cards and mortgages.
If you choose to open a bank account, you should know how to go about it before you arrive, as you might choose to send money to China before you move for ultimate convenience. Some banks you might be familiar with, such as HSBC, do have branches in China, but most banks exist only locally. Some of the more popular ones include Bank of China, CITIC Industrial Bank, and Standard Chartered. Additionally, unlike some countries, debit cards are issued right when you open an account. ATMs can be found nearly everywhere, especially in larger cities like Shanghai, Beijing, and Hong Kong.
Unlike cash, credit cards and checks are not used very often in China. If you still have a U.S. bank account, your foreign check will likely not be accepted anywhere. In fact, once you move, if your friends or relatives try to send money to China to help you via check, it can take up to a month to clear. For this reason, checks are discouraged as ways to get money to China.
You can send money to China through a money transfer company, but fees are often high. Instead, you could keep your U.S. bank account open and simply withdraw funds from that in China using a debit card. Be aware of the exchange rate if you do this. Currently $1 USD equals about 6.83013 Yuan, though the rate changes often. Additionally, ATMs charge a fee when you withdraw money from a different bank.
Another popular method is to send a prepaid debit card to your current address, and then add money to it whenever you need it. This is one reason many people keep their U.S. bank account open when they move, as they can send money to China easier this way. The fee is $5 per transfer, and you can send as much as you want at once. This also means you can have money the minute you get to China so you do not have to open a bank account the day you arrive.
Choose the method that is most convenient for you. Keeping fees and transfer times in mind is also wise. But overall, knowing the basics behind the banking system in China can help ease your transition.
