Janice Lozano
As an international student, it is important to open a bank account in your host country to manage your finances, pay for expenses, and receive financial aid. There are two types of bank accounts in countries like the US and the UK: checking accounts, which allow you to deposit and withdraw money frequently, and savings accounts, which are for collecting money over a longer period. International students can open bank accounts in the US and the UK, with some banks offering the option to apply online. To open an account, you will typically need identification, proof of address, and sometimes a tax identification number. It is worth researching different banks to find the most suitable account for your needs, considering factors such as fees, exchange rates, and the convenience of ATM locations.
| Characteristics | Values |
|---|---|
| Account type | Checking, savings, credit card |
| Purpose | Eliminate foreign transaction fees, pay for essentials, build credit history |
| Requirements | Two forms of identification, proof of identification and immigration status, tax identification number, proof of foreign and U.S. address, deposit |
| Options for international transfers | In-person, online, peer-to-peer apps |
| Considerations | Fees, exchange rates, security, transfer time, student benefits, online/mobile tools, minimum balance requirements |
| National banks | Bank of America, Chase, HSBC |
| National bank perks | Wide ATM access, no minimum balance/monthly direct deposit requirements, sign-up bonuses |
| HSBC Global Money Account | Spend and send money in multiple currencies with no HSBC fees, exclusive offers |
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What You'll Learn
International student bank account requirements
International students can open bank accounts in the US, the UK, and other countries. The requirements and processes for opening a bank account vary by country and bank, so it is important to check the specific requirements of your chosen bank and country. Here are some general guidelines and considerations for opening an international student bank account:
Identification and Address Verification
You will typically need to provide two forms of identification, such as a passport and a secondary document (e.g., driver's license, birth certificate, student ID, or major credit card). Additionally, you will need to provide proof of your foreign and local address. This can include documents such as a utility bill or rental agreement.
Tax Identification
You will likely need to provide a tax identification number, such as a Social Security Number (SSN) in the US or an Individual Taxpayer Identification Number from the IRS. Some banks may also accept a passport number, consular identification card, or other government-issued ID number if you do not have an SSN or tax identification number.
In-Person or Online Account Opening
In most cases, international students should plan to open their accounts in person at a local branch. However, some banks may allow you to open an account online if you have a Social Security card or other government-issued identification. Scheduling an appointment at a local branch is often possible through the bank's website, and they may also provide guidance on how to prepare for the appointment.
Fees and Charges
It is important to review the fees associated with the accounts you plan to open. Some banks may waive certain fees for students, such as maintenance fees on student checking accounts. Additionally, consider the minimum balance requirements and any potential charges for not meeting those requirements. Online banks often have lower or no fees compared to traditional banks with physical locations.
Credit History and Credit Cards
Building a local credit history is important, especially if you plan to borrow money or apply for loans in the future. Having a strong credit record can also impact renting an apartment, car insurance rates, and even employment opportunities. International students can start building their credit history by opening a credit card account. Secured credit cards are an option for those with no credit history, as they function like regular credit cards but require a deposit as collateral.
International Wire Transfers
If you need to send or receive money internationally, consider the options provided by your bank for wire transfers. Evaluate the fees, exchange rates, security, and transfer time offered by different services, including online wire transfer services and peer-to-peer apps. Some banks, such as HSBC, offer accounts that allow you to spend and send money in multiple currencies with competitive exchange rates and no additional fees.
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Deposit methods
There are several ways to deposit money into an international student bank account. The most common methods include:
- In-person deposits: You can visit a local branch of your bank and deposit cash or a check at the teller counter or through an ATM. Some banks may require you to schedule an appointment for in-person deposits.
- Online transfers: Many banks offer online banking services that allow you to transfer funds electronically from another account, either domestically or internationally. This can be done through the bank's website or mobile app.
- Mobile check deposit: Some banks, like Bank of America, offer mobile banking apps that allow you to deposit checks by taking a picture of them with your smartphone or tablet.
- Wire transfers: You can send or receive wire transfers from another bank account, either domestically or internationally. This can be done through online banking or in-person services.
- Direct deposits: You can set up direct deposits, such as regular payments from a part-time job or scholarships. Direct deposits can also include regular transfers from another account.
- International transfers: If you are receiving money from abroad, you can use international wire transfer services, online transfer services, or peer-to-peer apps. Keep in mind that these services may have associated fees, so it is important to evaluate the costs before transferring funds.
- Card payments: Using a debit or credit card linked to your account, you can make purchases or withdraw cash from ATMs, which will deduct funds directly from your account.
- Over-the-counter deposits: In some cases, you may be able to deposit cash or checks over the counter at a bank branch without having an account with that bank. This service may be offered by some banks for a fee.
It is important to note that the specific deposit methods available to you may vary depending on the bank and the country in which you are studying. Be sure to review the options provided by your chosen bank and understand any associated fees or requirements.
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Account types
There are two main types of bank accounts in the US: a checking account and a savings account.
Checking Account
A checking account is designed for everyday use. There are no limits to the number of transactions you can make, and you can use your bank’s app, checks, ATM, or money transfer apps (such as Zelle or Venmo) to manage your money. Money in checking accounts is easy to transfer between banks or use for paying bills. International students can use a checking account to buy groceries, shop online, or pay for entertainment. Checking accounts typically offer little or no interest on the funds you have deposited.
Savings Account
A savings account is designed for short- or long-term savings. It is generally harder to transfer money with a savings account compared to a checking account. With a savings account, you may need to first transfer your money to a checking account before you can access it, depending on your bank. Typically, savings accounts are better if you want to put some cash away for a bigger purchase, like a computer or a new phone.
Most banks have specific checking accounts for students, such as the Chase College Checking Account and the Santander Student Value Checking Account.
Some banks, such as HSBC, offer an international student bank account that allows you to spend and send money around the world in multiple currencies, with no bank fees.
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International bank considerations
When considering an international bank account, it is important to be aware of the various options available and the specific requirements of each. International students may need to provide various forms of identification, proof of address, and proof of enrolment at a university. Some banks may also require a minimum deposit to be made when opening the account. It is worth noting that some banks offer accounts specifically designed for international students, such as the HSBC Global Money Account, which allows for multiple currencies and has no extra HSBC fees.
Another key consideration is the type of account. There are two main types of bank accounts: checking and savings accounts. Checking accounts are designed for everyday use and offer easy access to funds, while savings accounts are designed for short- or long-term savings and may offer interest on deposits. International students may also want to consider the benefits of opening an account with a national bank, which often has a wider network of ATMs and branches, making it more convenient for those travelling or studying across different states.
It is also worth noting that some banks require a minimum balance to be maintained or regular direct deposits to qualify for certain perks or to waive fees. Transfer fees are another important consideration, as they can quickly add up when using different ATMs or transferring money between accounts. International students should also be aware of foreign transaction fees, which can be avoided by using a domestic bank account.
When choosing a bank, it is advisable to compare the fees, benefits, and requirements of several institutions. Some banks may offer incentives such as sign-up bonuses, waived fees for students, or exclusive offers for international students. Additionally, it is important to check the fine print and understand the specific requirements and limitations of each account type. By considering these factors, international students can make an informed decision when choosing a bank and account type that best suits their needs.
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Transfer fees
When it comes to transfer fees, there are a few things to keep in mind. Firstly, fees vary from bank to bank, so it's important to review the charges associated with the specific account you plan to open. Some banks may charge higher transfer fees than others, so it's worth comparing different options before making a decision.
Secondly, the type of transfer can also affect the fees. For example, international wire transfers may incur higher fees than domestic transfers. Additionally, some banks may offer lower fees for online or mobile banking transfers compared to in-person transfers. It's also important to consider the currency you are transferring. For example, if you have a UK-based bank account and use your debit card outside of the UK, you may be charged a foreign currency fee. HSBC, for instance, charges a 2.75% fee for foreign currency transactions.
Thirdly, some banks may offer accounts with specific benefits for students, such as reduced or waived transfer fees. For instance, NatWest previously offered an account for international students in the UK with low international transfer fees. While this account is no longer available, their current Select Account is free to open and use, and offers low fees for international transfers. Bank of America also mentions that some banks may waive maintenance fees on student checking accounts.
Lastly, it's important to be aware of any additional fees that may be incurred on top of the transfer fees. For example, if you are transferring money to or from an account with a different bank, you may be charged correspondent bank fees. Additionally, if you require a faster transfer, some banks may charge a higher fee for expedited services.
Overall, when considering transfer fees, it's important to review the specific fees associated with the account you plan to open, compare different banks, be mindful of the type of transfer and currency, and look out for any student benefits or additional fees that may apply.
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Frequently asked questions
Yes, international students can open bank accounts in many countries, including the US and the UK.
The requirements vary depending on the country and bank. In the US, you will need two forms of identification, a tax identification number, and proof of both a foreign and US address. In the UK, you can open an account online or in a branch, and you will need identification and proof of immigration status.
In the US, there are two main types of accounts: checking accounts and savings accounts. Checking accounts are for everyday use and allow you to deposit and withdraw money as often as you like. Savings accounts are for short- or long-term savings and may have restrictions on the number of transactions you can make. Some banks also offer credit card accounts.
Opening a bank account as an international student can help you eliminate foreign transaction fees, provide convenient ways to pay for essentials, and build a local credit history. Additionally, having a local bank account can provide a safe place to keep your money while studying abroad.
