Opening A Us Bank Account As An International Student

International students in the US often need to open a bank account to manage their finances effectively. While there are banks that allow you to open an account online, others may need you to visit a branch. Every bank has its own procedures and requirements for opening an account, but generally, you will need two forms of identification, such as a passport and a secondary document (like a driver's license or birth certificate). You will also need a student visa that validates your legal right to reside and study in the US. International students can choose from two types of bank accounts in the US: a checking account and a savings account.

Required documents for opening a bank account

International students can open a bank account in the US, and there are several options to choose from. The requirements vary by bank, but generally, two forms of identification and proof of enrolment at a university are required. Here is a list of documents that you may need to open a bank account as an international student in the US:

Proof of Identification and Immigration Status

A passport is usually accepted as a primary form of identification. For the secondary form of ID, you can use a driver's license, birth certificate, student ID, or a major credit card. If you already have an account with an international bank in your home country, bring at least three bank statements with you, as many US banks can access records from international branches, making the process easier.

Proof of Address

You will need to provide proof of your physical address in the US. This can be done with a utility bill or rental agreement in your name.

Government Forms Related to Your Studies

You will need to provide government forms related to your domestic studies, such as the I-94, and I-20 or DS-2019 forms.

Letter of Enrollment

A letter from your university's registrar's office confirming your enrolment is usually required.

Deposit

Most banks will require an initial deposit of between $100 and $200 in cash or by check.

It is recommended to open an account with a national bank, such as Bank of America or Chase, as they have branches and ATMs across the country. Additionally, many universities have college credit unions with accounts designed for international students, which may be easier to join due to fewer documentation requirements.

Types of bank accounts

As an international student in the US, you can open a bank account without a parent being present, but you must be at least 18 years old. There are two main types of bank accounts in the US: checking accounts and savings accounts.

Checking Accounts

A checking account is the most common type of account for international students. It allows you to deposit, withdraw, and transfer money frequently. With a checking account, you will typically get a debit card and a checkbook, which you can use to withdraw money and pay for expenses like rent and food anytime. Most banks have specific checking accounts for students, such as the Chase College Checking Account and the Santander Student Value Checking Account. Checking accounts are ideal for managing your daily expenses and paying bills.

Savings Accounts

A savings account is meant for long-term savings and is suitable if you want to save money for future emergencies, travel, or other expenses. Deposits in this account usually earn interest on your savings. Some students may consider opening a savings account if they are working or want to save for specific goals.

Other Types of Accounts

In addition to checking and savings accounts, there are also online-only banks that offer student accounts, such as Ally, Simple, and Chime. These banks provide the convenience of managing your finances from your phone or computer. International banks with branches in multiple countries can also be a good option for international students as they have more experience handling multiple currencies and customers moving between countries.

When choosing a bank account, it is important to consider factors such as fees, convenience of locations and ATM networks, and whether they offer services tailored to international students. Some accounts may have monthly service fees, which can range from $6 to $50 per month, but these fees are often waived for students. It is also advisable to choose a national bank with a large network of ATMs, such as Bank of America or Chase, rather than a state-specific bank, especially if you plan to travel across the country.

Benefits of a local US bank account

International students can open a bank account in the US, and there are several benefits to doing so. Here are some advantages of having a local US bank account:

Convenience and Accessibility

Having a local US bank account provides easy access to your funds while studying in the country. With a local account, you can withdraw cash from ATMs without incurring additional charges. Many national banks, such as Bank of America or Chase, have ATMs across the country, making it convenient to access your money regardless of your location. This is especially beneficial if you plan to travel within the US during your studies.

Reduced Fees

A local US bank account can help you minimise fees associated with international transactions and currency exchange. By using a local bank, you can avoid the high costs of international transfer fees and ATM charges. Some banks also offer accounts with minimal or no monthly maintenance fees, which can help you save money on your day-to-day banking.

Student Perks and Incentives

Many US banks offer incentives to students for opening accounts, such as cash bonuses, free SIM cards, or other sign-up bonuses. Some banks also have specific student checking accounts that waive fees while you are enrolled in college or do not require minimum balances or monthly direct deposits. These perks can help you reduce costs and make the most of your banking experience.

Building Credit History

If you plan to work in the US after your studies, opening a local bank account can be a step towards building a local credit history. A good credit history can open up future finance options, such as account overdrafts or student credit cards, helping you establish financial stability and easing your transition to working life in the US.

Security and Protection

When choosing a bank, it is essential to consider the security of your funds. Opt for a bank that is FDIC-insured, which means the US government protects your bank account against fraud, cyberattacks, or the unlikely event of the bank failing. This provides an extra layer of protection and peace of mind for your finances.

Choosing a bank

As an international student in the US, you'll likely need to open a bank account to manage your finances, pay for expenses, and receive any financial aid or scholarships. Here are some key factors to consider when choosing a bank:

Types of Bank Accounts

In the US, there are two main types of bank accounts: checking accounts and savings accounts. A checking account is for everyday use, allowing you to deposit and withdraw money frequently. When you open a checking account, you typically receive a chequebook and a debit card. A savings account, on the other hand, is for longer-term deposits and can help you earn interest on your savings. Most international students only need a checking account to cover their living costs, but if you plan to work or save for specific goals, a savings account may be beneficial.

Bank Location and Accessibility

Consider choosing a national bank with branches and ATMs across the country, especially if you'll be travelling or moving between states during your time in the US. This way, you can easily access your money and bank services wherever you go. Additionally, look for banks with ATMs near your campus to avoid withdrawal fees from using other banks' ATMs.

Fees and Charges

Many banks offer accounts with minimal or no monthly fees, especially for students. However, be mindful of other charges, such as fees for transfers, transactions, foreign currency conversion, paper statements, and ATM usage. Understand the services you'll be using and compare pricing across banks to find the most cost-effective option.

Services and Perks

Some banks provide incentives to students, such as cash bonuses, free SIM cards, or overdraft protection. They may also offer specific accounts for international students with unique requirements and features. Additionally, consider the convenience of online banking services and whether the bank has experience handling multiple currencies if you plan to transfer money internationally.

Financial Stability and Security

Look for banks insured by the Federal Deposit Insurance Corporation (FDIC) to ensure your funds are protected even if the bank faces financial troubles. Additionally, research the bank's reputation and financial stability to feel confident about the safety of your money.

Documentation Requirements

Different banks have varying requirements for opening an account, especially for international students. While a Social Security Number (SSN) is not always mandatory, you'll typically need some form of government-issued identification, such as a passport, Individual Taxpayer Identification Number (ITIN), or Employment Authorization Document (EAD). It's a good idea to call ahead or check the bank's website to understand their specific requirements.

Bank fees

As an international student in the US, you will likely need to open a bank account to manage your finances. There are two types of bank accounts in the US: a checking account and a savings account. A checking account allows you to deposit and withdraw money as often as you like, and you usually receive a chequebook and a debit card. A savings account, on the other hand, is meant for collecting money over the long term and is useful if you want to save money for travel or emergencies.

Now, let's delve into the various bank fees that you should be aware of as an international student:

Monthly Fees and Service Charges:

Some bank accounts may have monthly maintenance fees or service charges. These charges often depend on the amount of money you transfer and the minimum balance you maintain in your account. It's important to understand the fee structure before choosing a bank account.

ATM Fees:

Using an ATM from a different bank to withdraw money may result in additional charges. It is advisable to use ATMs from your bank to avoid these fees. National banks with a wide network of ATMs, such as Bank of America or Chase, may be more convenient for accessing your money across the country.

International Exchange and Transfer Fees:

As an international student, you may frequently encounter currency exchange and international transfer fees. Sending money directly from your overseas bank account to pay tuition fees or receiving money from home can be expensive due to uncompetitive exchange rates and high fees. International bank drafts or third-party wire transfer companies may offer more favourable rates and lower fees for transferring large sums of money.

Credit Card Fees:

Credit cards can be useful for making payments, but they may come with annual fees, particularly those that offer rewards programmes. Additionally, some colleges charge a fee for accepting credit card payments for tuition. This fee is typically disclosed on the college's website or can be confirmed by contacting the school directly.

Overdraft and Interest Fees:

If you have a credit card or overdraft protection on your bank account, be mindful of potential fees. Interest charges can accrue if you carry a balance on your credit card or if you use your overdraft and don't pay it off within the interest-free period.

Account Upgrade Fees:

Some banks may offer premium accounts with additional perks, such as better exchange rates or transaction fee waivers for international transfers. However, these accounts often require you to maintain a higher minimum balance, typically ranging from $10,000 to $75,000.

It is important to carefully review the terms and conditions of any bank account you consider to understand all the associated fees. Additionally, comparing different banks and their offerings can help you make an informed decision that minimises unnecessary fees and aligns with your financial needs as an international student in the US.

Frequently asked questions