Lori Meadows
International students often need to open a local bank account in their host country to save on cash conversions, receive living expense funds, and build a local credit history. While requirements vary across countries, most banks require an initial deposit, passport, and proof of residence. International students in the US, for example, need specific types of student visas to open a bank account, while in the UK, a legal resident can open and maintain a bank account. In Canada, there are no restrictions on international students holding multiple bank accounts.
| Characteristics | Values |
|---|---|
| Number of bank accounts | There is no rule specifying that an international student cannot have more than one bank account. |
| Country | Requirements vary by country. |
| Documents | Passport, proof of residence, proof of identity, proof of enrolment, student visa, birth certificate, driver's license, etc. |
| Initial deposit | Required in most countries. |
| Social security number | Not required in the US. |
| Language | Some countries may require proficiency in the local language. |
| Residency | Required in some countries, such as the UK. |
| Online account opening | May not be available in some countries or banks. |
| International transfer fees | May be applicable in some countries. |
| Paper statements | Some banks may charge for paper statements. |
| Overdraft | May not be available or limited for international students. |
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What You'll Learn
International students can have two bank accounts in Canada
Most international students will only need a checking account to pay for living costs while studying in Canada. However, you may want to open a savings account if you are working or want to save money for travel or emergencies. Many Canadian banks offer benefits to students, such as waiving monthly fees, providing advice on budgeting, and offering reward points or shopping discounts.
When choosing a bank, it is worth considering which banks are closest to your university and which have ATMs on or near campus, as you will be charged a transaction fee every time you use an ATM from a different bank. Banks such as CIBC offer benefits to international students, such as the ability to send money internationally with no transfer fee and a free SPC+ membership.
To open a bank account in Canada as an international student, you will need to present documents to prove your legal status in the country. It is recommended that you book an in-person appointment to do this, as it will be less complicated to present these documents in person.
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The benefits of having a local US bank account
International students can benefit from opening a local US bank account in several ways. Firstly, it can help them avoid international transaction and currency exchange fees, which can be costly. A local US bank account will also provide greater convenience when making payments for everyday purchases, bills, travel, and emergencies. Additionally, students can receive their paychecks, financial aid, scholarships, and other payments directly into their US bank accounts, giving them faster access to their funds.
Having a local US bank account can also offer security benefits. Most US banks have security protocols to prevent identity theft and fraud, and accounts are insured by the Federal Deposit Insurance Corporation (FDIC), which protects against fraud, cyberattacks, and bank failure. Furthermore, a US bank account can help international students build a local credit history, which may be beneficial if they plan to stay and work in the US after their studies.
When choosing a bank, students should consider factors such as fees, services offered, ease of opening an account, and their individual banking needs. Some banks may have partnerships with international banks, which can reduce costs. Students should also look for banks with a wide ATM network, as using another bank's ATM may incur charges. National banks like Chase and Bank of America have branches and ATMs across the country, making them a convenient choice for students who travel frequently.
Overall, opening a local US bank account can provide international students with greater financial security, convenience, and the ability to manage their money more effectively during their time in the US.
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Documents required to open a bank account in the US
International students can open a bank account in the US, and it is advisable to do so to avoid the high fees associated with using a foreign bank account. While the specific requirements vary between banks, here is a list of documents you will likely need to open a bank account as an international student in the US:
- Proof of identity: You will need at least one form of primary ID, such as a passport, visa, or driver's license. Some banks may require two forms of identification, including a secondary ID, such as a student ID or a foreign driver's license.
- Student visa: You will need a specific type of student visa, such as an F1 visa, J1 Visa, or M1 Visa, to validate your legal right to reside and study in the US.
- Proof of enrollment: Official documentation from your college or university is required to prove your enrolment status.
- Proof of address: You will need to provide both a foreign and US address.
- Tax identification number: A US tax identification number, such as a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN), is often required. However, if you are not eligible for an SSN or ITIN, you may need to fill out Form W-8BEN.
- Initial deposit: Most banks require an initial deposit to activate your account. The amount varies between banks but is typically between $100 and $200.
It is important to note that you will likely need to visit a physical bank branch in the US to open your account, as very few banks allow you to open an account entirely online or from abroad. Additionally, consider exploring college credit unions, which often require fewer documents and offer perks tailored to students.
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Differences in bank accounts for international students in the UK
In the UK, international students can open and maintain a bank account as long as they are legal residents. There are two types of bank accounts in the UK: a current account and a savings account. A current account allows you to deposit and withdraw money as often as you like, and a debit card is usually provided when you open one. Savings accounts, on the other hand, are for collecting money over a longer period. Some students may consider opening one of these if they are working or want to save money for travel or emergencies.
When opening a bank account in the UK as an international student, you will need to provide some form of identification, such as a passport, birth certificate, or driver's license. Some banks may also require proof of residence. It is worth noting that some banks in the UK, such as Barclays, require students to have lived in the country for at least three years to be eligible for their student accounts.
There are many banks in the UK, and it is important to choose one that suits your needs. Some factors to consider include the bank's location, whether they offer student accounts with perks like overdrafts and discounts, and the cost of international transfer fees.
Having a local bank account as an international student in the UK can provide several benefits. It can help save on cash conversions and provide a convenient way to receive living expenses or income. Additionally, having a local account can help build a local credit history, which may be useful if you plan to stay in the country after graduation.
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Why international students might need two bank accounts
International students may need two bank accounts for a variety of reasons, including:
Saving on cash conversions and bank fees
Using foreign bank accounts in some countries, such as the US, can be costly due to high exchange rates, international transaction fees, ATM fees, and telegraphic bank transfer fees. By having a local bank account, international students can save on these fees and conveniently manage their finances.
Receiving living expense funds
If an international student secures loans or scholarships for living expenses that are paid directly to the university, the university will typically transfer the money to the student's local bank account. Therefore, having a local bank account is necessary to access these funds.
Building a local credit history
International students who plan to stay and work in the host country after graduation may benefit from building a local credit history. Having a local bank account can be a step towards establishing financial credibility in the host country.
Separating funds for different purposes
Some international students prefer to have multiple bank accounts to separate their funds for different purposes, such as everyday expenses, savings, and investments. This helps them manage their finances more effectively and build financial discipline.
Accessing better overdraft facilities
In some cases, international students may find that certain banks offer more favourable overdraft facilities or interest rates. By having two bank accounts, they can take advantage of the benefits offered by different banking institutions.
It is important to note that the regulations and requirements for opening bank accounts vary across countries and banking institutions. International students should research the specific rules and requirements of their host country and consult with their chosen banks to ensure they meet all the necessary criteria for opening multiple bank accounts.
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Frequently asked questions
There is no legal restriction on the number of bank accounts an international student can have in the US. However, some banks may have their own rules regarding the number of accounts a student can open.
Having a local US bank account can help international students save on international transaction fees, ATM fees, and telegraphic bank transfers. It can also be easier to pay rent, utilities, and cell phone bills with a local account.
Managing multiple bank accounts can be confusing, and there may be additional costs associated with certain accounts, such as paper statement fees.
You will typically need a student visa (such as an F1, J1, or M1 visa), a passport, and proof of enrollment at a college or university. Some banks may also require proof of residence and additional forms of identification, such as a birth certificate.
Yes, some banks in the US offer specific accounts for international students that may have benefits such as discounts on purchases made with a debit card. Additionally, online-only banks such as Monzo, Revolut, or Starling can be good for tracking spending and setting budgets.
