Savanna Hoffman
International students can open a bank account in the US, which can help them eliminate foreign transaction fees and gain convenient ways to pay for essentials. When choosing a bank, students should consider the monthly fees, the proximity of the bank's ATMs to their campus, and the availability of international money transfer options. To open a bank account, international students typically need to provide a passport, visa, proof of address, and possibly a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).
| Characteristics | Values |
|---|---|
| Passport | Required |
| Visa | Required |
| I-20 or DS-2019 form | Required |
| Proof of address | Required |
| Social Security Number (SSN) | May not be required |
| Individual Taxpayer Identification Number (ITIN) | May be required |
| Proof of enrollment | Required |
| Proof of identification and immigration status | Required |
| Minimum age | 18 years |
| Monthly fees | May be waived for students |
| ATM availability | Important |
| FDIC insurance | Important |
| International money transfer options | Important |
| Mobile and online banking | Important |
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What You'll Learn
Documents needed to open an account
When opening a bank account as an international student, it is important to note that requirements vary by bank and state. It is advisable to open an account with a national bank, such as Bank of America or Chase, to have access to ATMs across the country.
- 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. Some banks may ask for a Social Security card or other identification issued by the US government.
- Proof of address: Documents that show proof of both a foreign and US address. This can include a utility bill or rental agreement.
- Government forms: Related to your studies in the country, such as proof of active enrollment in a qualifying educational institution or a letter proving you are enrolled in university.
- Tax identification number: Some banks may ask for a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN) from the IRS. If you do not have an SSN or ITIN, some banks will accept a passport number, a consular identification card, or other government-issued ID number.
It is important to check the specific requirements of your chosen bank and be prepared with all the necessary documentation before opening an account. Additionally, consider choosing a bank that offers benefits tailored to students, such as waived maintenance fees on student checking accounts, no foreign transaction fees, and convenient ways to access money.
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Choosing a bank
Account Type
There are two main types of bank accounts in the US: checking accounts and savings accounts. Checking accounts allow you to deposit, withdraw, and spend money freely, usually with a chequebook and a debit card. Savings accounts are designed for collecting money over a longer period and often offer interest on your balance. Some banks also offer hybrid accounts that combine features of both checking and savings accounts. Additionally, some banks provide special accounts for international students, so be sure to explore these options.
Fees and Charges
Many banks in the US charge monthly fees or service charges for their accounts. These fees may depend on the amount of money transferred and the minimum balance maintained. Some banks may also charge additional fees for services such as paper statements or using another bank's ATM. It is essential to understand the fee structure and any potential hidden charges before choosing a bank.
ATM Accessibility
Consider choosing a national bank with ATMs located across the country, especially if you are an international or out-of-state student. This will ensure that you can easily access your money wherever you are. However, if you plan to stay in-state, your local bank may be a more convenient option, especially if you already have an account with them.
Online Banking
Online banking services are crucial for international students, as they provide convenience and ease of managing your finances. Look for banks that offer robust online banking platforms and mobile apps that allow you to transfer funds, deposit cheques, and access other banking services from the comfort of your home or device.
FDIC Insurance
It is advisable to choose a bank that is secured by the Federal Deposit Insurance Corporation (FDIC). This insurance protects your deposits up to a certain limit, ensuring that you will receive your funds even if the bank fails. FDIC insurance provides an extra layer of security and peace of mind.
Other Considerations
When choosing a bank, you may also want to consider factors such as the bank's reputation, personalized financial solutions, and customer reviews. Additionally, some banks may require a minimum balance to open an account or proof of enrollment at your school. It is always a good idea to research the specific requirements and features offered by different banks, including specialised services for international students, to make an informed decision.
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Account management
As an international student, having a bank account in the US can help you eliminate foreign transaction fees and provide convenient ways to pay for essentials. It is also the first step towards building a credit history, which may make it easier to borrow money in the future.
When choosing a bank, it is advisable to opt for a national bank such as Bank of America, Chase, or Citibank, rather than a state-specific bank, so that you can use ATMs located across the country. You should also consider banks with low or no fees, a wide network of ATMs and branches near your campus or residence, and favourable international money transfer options and foreign currency transactions.
Once you've selected a bank, you can typically open your account in person or online. To open an account, you will need to provide proof of identification and immigration status in the US (passport, I-94, and I-20 or DS-2019), two forms of identification, a tax identification number, and documents that show proof of both a foreign and US address. Some banks may also require a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).
After opening your account, you can utilise your bank's online and mobile banking platforms to monitor transactions, transfer money, and pay bills. You can also set up alerts to avoid potential fees, such as overdraft charges or out-of-network ATM fees. Building a solid credit history is crucial for future financial endeavours, so consider applying for a student credit card linked to your account.
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International money transfers
Firstly, it is advisable for international students to open a bank account with a national bank, such as Bank of America or Chase, rather than a state-specific bank. This is because national banks have ATMs located across the country, which can be convenient for students who may travel or move interstate. Additionally, it is recommended to choose a bank that is FDIC-insured, ensuring that you still receive your funds even if the bank goes out of business.
When it comes to sending and receiving international money transfers, there are a few options available. Traditional banks offer wire transfers, which are known for being safe, secure, and fast. However, they often charge fees and may have complex processes and hidden fees, such as charging a margin above the daily exchange rate. It is important to research the fees and charges involved, as they can vary depending on the amount of money transferred and the minimum balance maintained in the account. Additionally, some banks may charge the recipient a fee for receiving money from overseas.
As an alternative to traditional banks, international students can consider using money transfer specialists or non-bank payment service providers (PSPs). These third-party platforms, such as Wise (formerly TransferWise), OFX, CurrencyFair, and TorFX, often offer lower rates and simpler processes for transferring money between different currencies. They can be used alongside a traditional bank account, but it is important to note that they do not offer the same services as banks, such as overdrafts, loans, or interest on savings.
When deciding on a method for international money transfers, it is crucial to consider the safety and security of your funds. Wire transfers are generally considered safe since the funds go directly from one bank to another and then into the recipient's account. However, it is important to be cautious of scams and fraudulent activities. Be wary of emails with grammatical and spelling errors, fake checks, or requests from strangers to wire money. Always research the company or platform you are using for transfers, especially when dealing with large amounts of money.
In conclusion, international students should carefully consider their options for international money transfers. While traditional banks offer wire transfers, there are also alternative platforms with lower fees and simpler processes. By opening an account with a national bank and being mindful of potential risks, international students can effectively manage their finances and safely transfer money internationally.
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Building a credit history
To open a bank account as an international student in the US, you will need to provide two forms of identification, a tax identification number, and documents that show proof of both a foreign and US address. It is advisable to open your bank account with a national bank such as Bank of America or Chase, rather than a state-specific bank, so that you can use ATMs located across the country.
As an international student in the US, building a credit history is crucial. Credit refers to your ability to borrow money or access goods and services with the understanding that you'll pay for them later. Your credit score, which is a three-digit number, represents your creditworthiness. A good credit score will make it easier to secure loans, credit cards, and other financial products with favourable terms and lower interest rates.
The FICO score, created by the Fair Isaac Corporation, is the most common measurement used to identify your credit rating inside the US. This score is based on factors such as your payment history, the amount of debt you have, the length of your credit history, the types of credit you use, and recent credit inquiries. Lenders use this score to determine your lending risk.
- Use a credit card responsibly: One of the easiest ways to build credit is by using a credit card and paying off the charges each month or week. This will allow you to have regular use of the card and steady payments, which lenders like to see.
- Pay your utility bills on time: If you're renting a property, you'll have to pay utility bills such as gas, electric, phone, and internet. Set up monthly transfers from your bank account to ensure these bills are always paid on time. Making regular payments on your utilities is another way to prove to lenders that you are responsible and will be a suitable applicant for a loan or credit.
- Maintain a local bank account: Opening and maintaining a local bank account will demonstrate a financial history with that bank. This bank is more likely to offer you credit in the future if they can see your income and typical transactions.
- Pay off student loans: If you have taken out a student loan, such as one from Prodigy Finance, paying it off will help build your credit history. Prodigy Finance reports loan repayments to Experian in the United States and TransUnion in the United Kingdom.
Remember, building credit takes time, and it's important to start as soon as possible. Even without a Social Security Number (SSN), you can still engage in positive credit-building activities that will make a difference to your credit score.
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Frequently asked questions
You'll need a passport, visa, I-20 or DS-2019 form, proof of address, and possibly a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).
You should open a checking, savings, or credit card account. A checking or savings account will enable you to send and receive money via international wire transfers. A credit card will help you build a credit history, which is crucial if you want to borrow money in the future.
You should consider the bank's fees, accessibility, international services, and mobile and online banking capabilities. It is advisable to opt for a national bank with a wide network of ATMs and branches near your campus or residence.
