Savanna Hoffman
International students can get help from their bank, depending on the country they are studying in and the bank they choose. For example, international students in the US can open a bank account with Bank of America, which provides language interpretation services in over 206 languages. Similarly, HSBC UK offers an International Student Bank Account, which provides access to a financial fitness hub for guidance and tips on building financial strength. International students can also benefit from exclusive offers from HSBC's accommodation partners to help them settle into a new life in the UK. It is important for international students to open a local bank account to effectively manage their finances, build a credit history, and avoid high foreign transaction fees.
| Characteristics | Values |
|---|---|
| Benefits of a domestic bank account | Eliminate foreign transaction fees, convenient ways to pay for essentials, build a credit history |
| International student bank account options in the US | Bank of America, Wells Fargo, HSBC USA, US Bank, Capital One, Santander, Chase |
| International student bank account options in the UK | HSBC |
| Documents required to open an account | Social Security card, other identification issued by the US government, passport, consular identification card, government-issued ID number |
| Other requirements | May need to open the account in person, may need to provide proof of address |
| Additional perks | Insurance coverage, gasoline fill-up discounts, online banking, access to financial advice |
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What You'll Learn
Choosing the right bank
Types of Accounts
Firstly, you should be aware of the different types of bank accounts available. In the US, there are two primary types of accounts: checking accounts and savings accounts. Checking accounts allow you to deposit and withdraw money frequently and typically come with a debit card. Savings accounts, on the other hand, are designed for collecting money over the long term and may offer interest on your balance. Some banks also offer hybrid accounts that combine features of both checking and savings accounts.
Bank Charges
It is essential to understand the various charges associated with different banks and accounts. These may include opening fees, monthly fees, maintenance fees, transaction charges, and ATM fees. Compare the fee structures of different banks and look for accounts with low or waived fees for students. Some banks may also offer accounts with no minimum balance requirements, which can be beneficial if you are unsure about your financial situation.
Services and Convenience
Consider the services and conveniences offered by different banks. For example, online banking and mobile banking apps can be incredibly useful for managing your finances remotely, especially if you are an international student with a busy schedule. Additionally, look for banks with a wide network of ATMs, as this will make it more convenient and cost-effective to access your money.
Bonuses and Perks
Some banks provide bonuses and perks for student account holders, such as cashback rewards, discounts, welcome bonuses, or insurance coverage. These can help you save money and get more value from your account.
Location and Currency
If you are studying in a new country, it is advisable to choose a national bank rather than a state-specific bank, as this will give you access to ATMs and branches across the country. Additionally, be mindful of the currency used in your host country and consider the potential exchange rate fees you may incur when withdrawing or transferring money.
Recommendations
Some recommended banks for international students in the US include Bank of America, Wells Fargo, HSBC USA, US Bank, Capital One, and Santander. These banks offer various services and perks tailored to students.
Remember, the best bank for you will ultimately depend on your unique needs, budget, and financial goals. Taking the time to research and compare different banks will help you make an informed decision.
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Opening an account
International students can open a bank account in the US or UK, depending on where they are studying.
Opening a bank account in the US
International students can open a bank account in the US, which can help them eliminate foreign transaction fees and pay for essentials. It is also a way to start building a credit history, which can make it easier to borrow money in the future.
To open an account, students will typically need 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). They will also need to provide an ID, utility bill, or rental agreement that shows their physical address in the US, as well as government forms related to their domestic studies and a letter proving they are enrolled in university. Some banks may allow students to open an account online if they have a Social Security card or other US government-issued identification.
Opening a bank account in the UK
International students can open a basic or current account in the UK, which usually provides a visa debit card and is combined with an online banking service. To open an account, students will typically need evidence of their UK address, such as a letter from their college confirming their address, as well as evidence of their immigration permission.
Students can open an account with an online bank, which can be a safe option for those who are not yet comfortable setting up an account in English. Online banks often have lower or no fees and higher interest rates compared to traditional banks. However, they do not have physical locations or their own ATMs, so students may need to pay a fee to withdraw cash from other banks' ATMs.
Alternatively, international students can open an account with a local bank near their university or college, as these banks have accounts designed to serve students and are easier to join.
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Building a credit history
International students can get help from their bank. For instance, Bank of America provides language interpretation services in over 206 languages to assist with any financial needs. HSBC UK also provides an app that allows international students to check their balance, make payments, freeze their card, and chat for support.
As an international student, building a credit history can be challenging, especially if you don't have a social security number or credit history. However, it is crucial to establishing yourself financially in the United States. Here are some ways to build a credit history:
- Open a Local Bank Account: Having a local bank account in the US is the first step towards building credit. It is recommended to open a checking or savings account with a bank or credit union, as this can put you on the path towards building credit.
- Use a Credit Card Responsibly: One of the easiest ways to build credit is by using a credit card for daily purchases and paying off the charges each month. This demonstrates regular use of the card and steady payments, which lenders view favourably. It is important to make timely payments to show financial stability.
- Pay Utility Bills on Time: When renting a property, you will have to pay utility bills such as gas, electric, phone, and internet. Setting up monthly transfers to ensure these bills are paid on time helps build credit. Lenders view regular payments on utilities as a sign of responsible financial behaviour.
- Apply for Credit with a Co-Signer: If you have a co-signer with established credit history in the US, you can apply for credit cards or loans together. However, ensure your co-signer understands their responsibility for your debt if you cannot pay.
- Student Loans: Repaying student loans can also help build credit. Ensure that your loan repayments are reported to credit bureaus such as Experian and TransUnion.
While it takes time and finances to build credit, starting early and consistently engaging in positive credit-building activities will improve your credit score and financial future.
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Managing finances
Choosing a Bank
There are many banks to choose from, and it can be challenging to decide which one is best for you. Some of the best banks for international students in the US include Bank of America, Wells Fargo, HSBC USA, US Bank, Capital One, and Santander. Bank of America has many financial centres and ATMs conveniently located throughout the US and provides services in over 206 languages. HSBC offers exclusive offers from accommodation partners to help international students settle into a new life.
Opening an Account
Most international students will only need to open a checking account to pay for their living costs while studying. Some banks may allow you to open an account online if you have a Social Security card or other identification issued by the US government. However, you may need to open your account in person. It is a good idea to schedule an appointment at a local branch and prepare the necessary documents before your appointment. You don't necessarily need a Social Security Number (SSN) to open a bank account, but if you get a job while attending a US college, you will need to get one. Some banks may ask for some sort of tax identification number, which can be from your home country or provided by the US government.
Fees
Fees vary from bank to bank, so it is important to ask for a list of charges associated with the accounts you plan to open and review them closely. Be sure to check for any student benefits, as some banks waive maintenance fees on student checking accounts. Also, be aware of monthly fees or service charges, as many bank accounts will have these. Charges often depend on the amount of money you transfer and the minimum amount you wish to keep in your account. Some banks may also have additional charges for things like paper statements.
International Wire Transfers
If you need to transfer money from your home country, you can use international wire transfer services, which can be done in-person or online, as well as through peer-to-peer apps. Be sure to evaluate the fees, exchange rates, security, and transfer time before deciding which service to use.
Credit History
If you plan to stay in the US for a longer period, it is important to create a credit history to show lenders that you are financially responsible. A strong US credit record can help you rent an apartment, qualify for loans, and get favourable rates on car insurance. Some employers will also look at the credit of prospective employees. If you have no credit history in the US, consider applying for a secured credit card, which works like a regular credit card, except that you deposit money into an account as collateral.
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International wire transfers
There are several alternatives to traditional bank transfers, including online transfer services, phone transactions, specialised transfer services, and peer-to-peer apps. For example, TransferWise is a US-based online money transfer service that helps cut down costs by showing two local transfers instead of one international transfer.
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Frequently asked questions
Having a local bank account can help international students eliminate foreign transaction fees, and gain convenient ways to pay for essentials. It also helps students build a credit history, which can make it easier to borrow money in the future.
Some good banks for international students in the US include Bank of America, Wells Fargo, HSBC USA, US Bank, Capital One, and Santander.
HSBC UK offers bank accounts for international students who have lived in the UK for less than 3 years.
Some banks allow international students to open an account online if they have a Social Security card or other identification issued by the US government. However, most international students should plan to open their accounts in person. Some banks may ask for some sort of tax identification number, which can be provided by the student's home country or the US government. If you don’t have an SSN or ITIN, some banks will accept a passport, a consular identification card, or other government-issued ID.
Many banks offer loans to international students, but they often require a co-signer who is a US citizen. Some banks also offer discounts to international students when they use their debit cards to make purchases.
