Megan Brooks
Choosing a bank as an international student can be a challenging task, especially when you are new to a country. There are a few important factors to consider when choosing a bank account. Firstly, you should ensure the bank offers the services you require, such as online banking and access to ATMs. Secondly, it is important to consider the fees associated with the account, including transaction, transfer, and foreign currency conversion fees. Lastly, it is worth looking into the bank's reputation and financial stability to ensure your money will be secure. While there are hundreds of banks in the US, JP Morgan Chase, Bank of America, and Wells Fargo are some of the most popular choices for international students.
| Characteristics | Values |
|---|---|
| Number of ATMs | Choose a bank with many ATMs near you or nationwide to avoid withdrawal charges |
| Fees | Choose a bank with no monthly fees or service charges, no transaction, transfer or foreign currency conversion fees |
| Online Banking | Choose a bank with online banking |
| Financial Stability | Choose a bank with FDIC insurance or good reputation to ensure your money is safe |
| Identification Requirements | Choose a bank with identification requirements you can meet, e.g. passport, ITIN, EAD, student ID card, birth certificate, driver's license |
| Credit Score | Choose a bank that helps you build a credit score, e.g. through an overdraft facility or credit card |
| Special Accounts | Choose a bank that offers special accounts for international students, e.g. Chase College Checking Account |
| Virtual Banks | CloudBank 247, Discover Bank, Ally Bank, E-Trade |
| National Banks | Bank of America, Chase, Wells Fargo |
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What You'll Learn
Account fees and charges
When choosing a bank, it is important to consider the fees they charge for different services. Monthly service fees, sometimes called maintenance fees, are charged by banks to maintain your bank account every month. They typically range between $6 and $50 per month, but some banks may charge more. These fees are easily avoidable, as they are frequently waived for student accounts, and they can also be avoided by maintaining a minimum daily balance, making regular monthly deposits, or opting for paperless statements. Bank of America, for example, waives student account fees as long as you are a student, but they do charge a $15 fee for international incoming wires.
Other banks may require you to have a minimum amount of money to open an account, which can range from $25 to 200,000 Indian rupees. Some banks, like US Bank, offer accounts with no minimum balance requirements and low initial deposits of $25. Additionally, some banks may charge extra for using a different bank's ATM to withdraw money, so it is advisable to choose a bank with ATMs located across the country or near your college or lodging, such as Bank of America or Chase.
It is also important to consider the fees associated with specific transactions, such as transfers and foreign currency conversion. Different banks charge varying levels of fees for these transactions, so selecting the most appropriate option can help you save money and budget effectively. For example, HSBC Premier Checking offers complimentary wire transfers, but the account has steeper requirements. Alternatively, Wise (formerly TransferWise) charges low, transparent fees for converting currencies and sending money internationally, and their multi-currency account and debit card let you hold money in over 40 currencies.
Some banks may also offer accounts with no charges on debit card swipes or foreign transactions, such as Lorien Finance, or accounts with no overdraft fees, such as Clear Access Banking. Other banks, like Swadesh, offer free checking accounts, credit cards with no interest rates, and other benefits, but these accounts may be completely digital and unable to provide paper checks. Ultimately, the best bank for you will be one that meets your needs and offers the services you require at a price that is affordable for you.
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Bank reputation and financial stability
When choosing a bank as an international student, it is important to consider the bank's reputation and financial stability to ensure your money is secure.
Firstly, it is advisable to opt for a national bank with a strong presence across the country, such as Bank of America or Chase, rather than a state-specific bank. National banks provide the convenience of accessing your funds through a wider network of ATMs, which is especially useful if you plan to travel or move between states. Additionally, larger banks with a significant number of branches and ATMs can offer greater stability and security for your funds. For example, JP Morgan Chase Bank has the most ATMs in the US, with over 16,000 locations, followed by Bank of America, with approximately 15,000 ATMs.
Secondly, consider the financial stability of the bank and ensure your deposits are insured. Look for banks that are insured by the Federal Deposit Insurance Corporation (FDIC). This insurance protects your deposits up to a certain limit in the unlikely event that the bank fails. By choosing an FDIC-insured bank, you can have peace of mind knowing that your funds are secure.
Thirdly, research the bank's reputation for customer service and its track record in serving international students. Some banks, such as Bank of America, are known for waiving student account fees and offering special accounts for students under 25 with no monthly maintenance or overdraft fees. Others, like PNC Bank, provide virtual wallet services with free online and mobile banking and no monthly service charges for up to six years. International-focused banks, such as Adro, can also offer unique benefits, like setting up a US bank account before obtaining your visa.
Lastly, consider the bank's reputation for innovation and digital services. Online-only banks, such as Ally, Simple, and Chime, often cater specifically to students and offer competitive features. These virtual banks provide convenient access to your finances and can be a good option if you are comfortable with digital banking.
In summary, when selecting a bank as an international student, prioritize national banks with a strong presence across the country, ensuring easy access to your funds. Opt for banks insured by the FDIC to protect your deposits. Research the bank's reputation for customer service, especially towards international students, and take advantage of accounts with waived fees and beneficial features. Lastly, consider online-only banks for their convenience and competitive offerings. By considering these factors, you can make an informed decision about the reputation and financial stability of the bank you choose.
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Account features and services
When choosing a bank account as an international student, it is important to consider the account features and services offered by different banks. Here are some key factors to keep in mind:
Account Types
In the US, there are two main types of bank accounts: checking accounts and savings accounts. Checking accounts are for day-to-day use, allowing you to deposit and withdraw money frequently and access your funds whenever needed. Savings accounts, on the other hand, are designed for longer-term deposits and often offer interest on your savings. Some banks may also offer specific student accounts or international student accounts with different features and requirements.
Fees and Charges
Many banks in the US charge monthly fees or service charges, although these may be waived for students. It is important to understand the fee structure, including any charges for transactions, transfers, foreign currency conversion, paper statements, and the use of other banks' ATMs. Some banks may also have minimum balance requirements or restrictions on the number of transactions.
Debit Cards and ATMs
As an international student, you may be eligible for a debit card linked to your checking or savings account. This will allow you to make purchases and withdraw cash from ATMs conveniently. Consider choosing a bank with a wide ATM network to avoid additional charges for using other banks' ATMs. Some banks may also offer features like temporarily locking and unlocking your debit card for added security.
Online and Mobile Banking
With the advancement of technology, many banks now offer online and mobile banking services, providing you with convenient access to your account information and transactions from anywhere. This can be especially useful for international students who may need to manage their finances remotely.
Overdraft Protection
When considering a checking account, look into the overdraft protection options offered by the bank. Overdraft protection allows you to make transactions even if you don't have sufficient funds in your account at the moment, preventing declined payments and NSF fees. Different banks may offer various overdraft options, such as linking to a savings account, a credit card, or an overdraft line of credit.
Financial Stability and Reputation
It is crucial to choose a bank that is financially stable and has a good reputation. Look for banks insured by the Federal Deposit Insurance Corporation (FDIC) to ensure your funds are protected even if the bank fails. Additionally, consider the bank's reputation for customer service, ease of use, and any additional perks or benefits they may offer to students.
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Ease of opening an account
International students can open a bank account in the US, and it is advisable to do so as soon as possible after arrival. This will enable you to manage your money, pay for expenses, and transfer money both domestically and internationally. It is also a requirement for receiving financial aid or scholarships, and for paying tuition or school fees.
There are two types of bank accounts in the US: a checking account and a savings account. A checking account allows you to deposit and withdraw money as often as you like, and you will usually receive a chequebook and a debit card. A savings account is for collecting money over the long term and will accrue interest. Most international students will only need a checking account for their living costs, but some may also wish to open a savings account.
When choosing a bank, it is important to consider the fees they charge for their services, the convenience of their locations and ATM networks, and whether they offer services tailored to international students. Some banks may require a minimum amount of money to open an account, and may ask for proof of enrolment at your 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.
It is possible to open a bank account over the phone or online, but it may be easier to do so in person in case there are any complications. Most 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 Authorisation Document (EAD). Some banks may have more stringent identification requirements, so it is a good idea to call ahead and ask about their specific requirements.
Some banks offer special accounts for international students, which may have different requirements or features than regular accounts. Bank of America, for example, offers an Advantage Banking account for international students, which provides access to language interpretation services in over 200 languages. Chase also offers a College Checking Account for international students, which enables free use of Chase ATMs and local payments, but does not support international transfers.
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Debit cards and credit scores
As an international student in the US, you will likely need a debit card to deposit and withdraw money to meet your living expenses. Most international students will only need to open a checking account to pay for their living costs while studying in the US. Many banks offer debit cards for international students, which can be linked to a checking or savings account. These debit cards can be used to make purchases and withdraw money from ATMs.
When choosing a bank, it is advisable to opt for a national bank such as Bank of America or Chase, as this will give you access to ATMs across the country. Bank of America, for example, has one of the lowest minimum balance requirements and no maintenance fees, and it offers a wide range of banking services and products. HSBC is another bank that provides international banking services for students, including credit cards and accounts to support your educational journey.
If you plan to continue working in the USA after your studies, choosing an account that will enable you to build a local credit history can be beneficial. This can make it easier to seek additional finance options in the future. For instance, you may be able to apply for an overdraft facility or a student credit card. Some banks offer credit cards to help you build a US credit score, such as HSBC's Premier and Elite cards.
When opening a bank account in the USA as an international student, you will typically need to provide your passport, student visa, acceptance letter from your university, and a debit/credit card from your bank account in your home country. Some banks may also require a valid study permit or other documentation proving your status as an international student. It is important to check the specific requirements of your chosen bank.
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Frequently asked questions
Some banks that are suitable for international students include Bank of America, Chase, PNC Bank, and Ally Bank.
It is important to consider the services offered by the bank, such as online banking and access to ATMs. Additionally, it is essential to look into the fees associated with the account, including transaction fees, transfer fees, and foreign currency conversion fees. The bank's reputation and financial stability are also crucial factors to ensure your money is safe.
Most banks require some form of government-issued identification, such as a passport, and may also ask for an Individual Taxpayer Identification Number (ITIN) or an Employment Authorization Document (EAD). It is recommended to call ahead and inquire about the specific requirements for international students.
A US bank account can make it easier for international students to manage their finances, especially when it comes to paying tuition fees and other expenses during their time studying abroad. It can also help with building a credit score, which is necessary for future loans, rentals, and other financial endeavours.
