I'm currently in Bangkok and will travel to meet family coming from US in Tokyo in 2 weeks. I heard its best to do currency exchange at Tokyo Airport? Is that true? Are the rates much better?

Same rate everywhere in Japan. 3 yen off the market (mid-rate) for cash. 1 yen for a wire.

Same rate at every bank. You'll pay more at a hotel, and perhaps a little less at those cheap ticket resale shops you'll find in places like the area around Kanda station.

Unless things changed in the last few years I wouldn't go to a bank even a large branch of a major bank. You used to have to wait for ages for simple transactions. Go to currency exchange at the airport, in town (e.g. Travelex) or better still use ATMs.

I'll add to the suggestion of changing money at the airport. Unlike many countries, airport foreign exchange is not a ripoff in Japan. The rate for USD exchange has consistently been at 2.5% commission for cash, or 0.5% for traveler's cheques. Compare this to 14% that I consistently see at US airports. I've seen hotels offering foreign exchange anywhere from rates that match the airport/banks to up to 6%.

I used to have a Citibank account, so I always used my debit card to obtain the daily limit of cash at the NRT Citibank ATM.

Obtaining cash in Japan has become incredibly easier since I first went there in the 1970s. In those days, it took twenty minutes of bureaucratic rigmarole at a bank to cash a few travelers' checks. You'd sit and watch as your paperwork went from one desk to another to be glanced at and stamped. Then they'd give you a voucher to take to the tellers' area. You'd then wait for your name to be called to receive your cash.

They had ATMs before most places in the U.S. did, but none of them accepted foreign cards.

Cash advances on credit cards became possible during the 1980s, but you still had to go to a bank.

The Citibank ATMs came in during the 1990s, so knowledge of their locations became precious information for visitors.

The post office ATMs began accepting foreign cards in time for Japan's co-hosting of the World Cup in 2002.

Now the 7-11 ATMs take foreign debit cards, and they're always open.

The one caution is that your debit card undoubtedly has a daily withdrawal limit. That limit is based on midnight to midnight in your home time zone, not on local time.

You can check the NRT rates online:

http://www.narita-airport.or.jp/exchange_e/index.html

Note that travelers' checks get a better rate than cash though you would have to take fees into account to decide whether they are a better deal.

As I said it's one yen on wire (T is short for TT is short for Telegraphic Transfer) and three yen on cash. You get the wire rate for travelers checks as well. Same at hotels, banks, etc. but as Hailstorm said, you may be able to find some backstreet money changers who will do it more cheaply.

20 minutes, at the bank or at the post office. It's a travelling experience after all. Oh and the clerk called me back after 10 minutes because I didn't put a $ sign in front of the number. Still more interesting than waiting 20 minutes in a KL post office for a postage stamp

I always get the banks back by leaving a one yen coin in the the little round plastic money dish. Then I sprint out the door and down the street. It usually takes them at least several blocks for them to catch me and return my "money." I figure if everyone did this, it would eventually break the system and they would just put a machine in the bank lobby.

And if you made it all the way to Roppongi, you'd blend in with all of the other gaijin, and they'd never find you. So they'd have to give one yen to everyone, just to be safe.

Sorry, but do you mean the fees to acquire the travelers' checks, or is there an additional fee to accept/process the checks at Narita?

Looks to me like the reference is to the fees to acquire the cheques.

Why don't people use ATMs?

It's interesting that Travelex hijacked the ATMs at LHR and charge non-UK cardholders exchange fees.

I only go to Roppongi during non-banking hours.