Opening Bank Accounts: International Students' Guide

International students can open bank accounts in the US, which can help them eliminate foreign transaction fees and gain convenient ways to pay for essentials. The type of bank account that would be best depends on the account terms, features, and individual needs. There are two main types of bank accounts in the US: checking accounts and savings accounts. Checking accounts are useful for managing daily finances, such as making purchases and cash withdrawals, while savings accounts are for collecting money over the long term. International students will need to provide two forms of identification, a tax identification number, and documents that show proof of both a foreign and US address.

Types of bank accounts for international students

International students can open bank accounts in the United States, which can help them eliminate foreign transaction fees and gain convenient ways to pay for essentials. There are two main types of bank accounts in the US: checking accounts and savings accounts.

Checking Accounts

A checking account is the bank account you will be using for daily expenses and paying bills. It allows you to deposit and withdraw money as often as you like. Usually, when you open a checking account, you receive a chequebook and a debit card. Most international students will only need to open a checking account to pay for their living costs while studying in the US. Some banks may offer a student checking account, which may have features that are particularly useful for students, such as waived maintenance fees.

Savings Accounts

A savings account is a place to collect money over the long term and for future expenses or emergencies. Some students may consider opening one of these if they are working or want to save money for travel or emergencies. Savings accounts may also earn interest but have limits on withdrawals or transfers.

Choosing a Bank

When choosing a bank, consider factors such as the fees they charge for different services, the convenience of their locations and ATM networks, and whether they offer services specifically tailored to international students. Some banks may require a minimum amount of money to open an account or proof of enrollment at school. It is also important to be aware of any potential exchange rate fees or other charges that may apply when you withdraw or transfer money.

Opening an Account

International students can open a bank account in the US without a Social Security Number (SSN), but many banks will require some form of government-issued identification, such as a passport, and may ask for an Individual Taxpayer Identification Number (ITIN) or an Employment Authorization Document (EAD). It is recommended to open an account with a national bank, such as Bank of America or Chase, to easily use ATMs across the country.

Benefits of opening a local bank account

International students can benefit from opening a local bank account in several ways. Firstly, it provides a safe place to keep their money and manage their finances effectively. With a local bank account, students can easily pay their bills, such as rent, utilities, and cell phone plans, through various means such as debit cards, online transfers, or checks. Additionally, international students can avoid the high fees associated with using foreign bank accounts, including international exchange fees, ATM fees, and bank transfer fees. By opting for a local bank account, students can save a significant amount of money on these transactions.

Another advantage of having a local bank account is the convenience it offers. Most banks provide debit cards, enabling students to make purchases and withdraw cash from ATMs without carrying large amounts of cash. Furthermore, local bank accounts can facilitate direct deposits of earnings if international students decide to work on campus or take up paid internships or jobs off-campus. This streamlines their income and provides a more secure way to manage their finances. Many banks also offer incentives to students, such as waiving maintenance fees on student accounts, providing sign-up bonuses, or offering discounts with debit card purchases.

When choosing a bank, international students should consider their specific needs and compare the benefits offered by different institutions. Some banks may have branches or ATMs conveniently located near the student's campus, while others may provide online banking services that allow for easy money management through mobile apps. It is also essential to consider the fees associated with each account, as some banks may have lower monthly maintenance fees or waive certain charges for students.

In terms of the account opening process, international students should be prepared to provide the necessary documentation, which may include a student visa, two forms of identification, and proof of both foreign and local addresses. While some banks allow online applications, others may require students to visit a physical branch. It is always a good idea to schedule an appointment and confirm the specific requirements with the chosen bank beforehand.

Documents required to open a bank account

International students can open a bank account in the US, which is important for eliminating foreign transaction fees and building a credit history. While requirements vary by bank, here is a list of documents commonly required to open a bank account as an international student:

• Two forms of identification: Typically, a passport and a secondary document such as a driver's license, birth certificate, student ID, or major credit card.
• Proof of address: This includes providing both a foreign and US address. For the US address, you can use an ID, utility bill, or rental agreement.
• Student documents: This includes government forms related to your studies, a letter of acceptance or proof of enrolment in a university, and a student visa.
• Tax identification number: This includes either a Social Security Number or an Individual Taxpayer Identification Number (ITIN).
• Debit/credit card: Some banks may require a debit or major credit card with a Visa or Mastercard logo.
• Initial deposit: Some banks may require you to bring an initial deposit to fund your account after it has been opened.

It is important to note that some banks only permit students to open an account with a specific student visa, such as an F1 Visa (academic studies), J1 Visa (practical training), or M1 Visa (vocational studies). It is recommended to contact your desired bank directly to confirm eligibility and specific document requirements.

Bank options for international students

As an international student, you can open a bank account in your host country, which is a great way to avoid foreign transaction fees and easily access your money. You will need to provide the proper documents, which vary depending on the country and bank. For example, in the US, Bank of America requires two forms of identification, a tax identification number, and proof of both a foreign and US address. In contrast, a US Bank Student Checking Account may be more suitable for some students.

In the UK, you can open and maintain a bank account as long as you are a legal resident. However, you may be forced to close your international student account once you leave the country. In France, there are no restrictions on non-nationals opening bank accounts, but you will need to speak French to manage the setup process. In contrast, Mexico has many differences between banks, so it is essential to shop around before deciding.

When choosing a bank, it is important to consider factors such as monthly maintenance fees, ATM charges, wire transfer fees, and international wire transfer fees and procedures. A widespread ATM network or fee reimbursements for out-of-network ATMs can be beneficial for easy cash withdrawals. Additionally, a robust online banking platform with mobile accessibility can facilitate convenient financial management.

It is also worth noting that some banks only permit students to open an account with a specific student visa. For example, in the US, an F1 Visa for academic studies, a J1 Visa for practical training, or an M1 Visa for vocational studies may be required. Therefore, it is essential to conduct thorough research to determine which bank and account type will best suit your personal financial needs.

International wire transfers

There are several methods to perform an international wire transfer. The first is to use a bank's online portal or mobile app. Most banks offer this service, and it can be done by logging into your account and navigating to the wire transfer section. Here, you will need to provide specific information, such as the recipient's name, address, bank name, SWIFT code, account number, and the amount you wish to send. The bank will then charge a processing fee, typically between USD 40 and USD 50. The receiving bank may also charge a fee, usually between USD 10 and USD 20.

Another method is to use a specialist service such as Western Union, MoneyGram, PayPal, Wise, TransferWise, or TorFX. These services often provide faster transfers at lower fees and better exchange rates than traditional banks. For example, TransferWise cuts down the cost of transfers by showing two local transfers instead of one international transfer.

It is important to be cautious of scams when performing wire transfers. Always research the company you are using and be wary of emails with grammatical and spelling errors, strangers requesting wire transfers, and fake cheques.

Some universities also offer streamlined options for international students to make wire transfers to their student accounts. For example, Teachers College, Columbia University, offers three options: Flywire, PayMyTuition, and Convera (formerly Western Union). These services allow students to make payments in their own currency and offer competitive exchange rates.

Frequently asked questions