Personal finance and money management are essential life skills for everyone, especially international students on F1 visa in the United States. Knowing how much money comes in and out of your account, as well as bank fees, assists you to make better financial decisions.
When using foreign bank accounts while studying in the United States, international students confront financial difficulties. The exchange rate between the United States and the rest of the world is exceptionally high. Furthermore, foreign transaction fees and ATM fees are unreasonably expensive. This makes managing their accounts both costly and inconvenient.
But there is a way out. Opening a domestic bank account in the United States allows for a smoother transfer to university or college. Using a US bank saves foreign transaction fees and gives you a convenient way to pay for your university fees and personal needs.
As an international student, opening a bank account is a simple process that you can do before or after arriving in the United States. While some banks permit you to open an account online, others may require you to visit a branch. Every bank has its own set of procedures and standards for assessing candidates.
Read Also: How Can I Change my J2 Visa to F1?
Before creating an international student bank account in the United States, you must complete certain usual documentation. Let’s get into the specifics down below.
Gather the necessary documents
To open a bank account as an international student in the US, you will need the following documents:
Student visa documents: Your student visa validates your legal right to reside and study in the United States. Only students holding specific types of student visas, such as an F1 visa (for academic studies), J1 Visa, or M1 Visa, are allowed to open a bank account. Check with the bank to ensure you have met all the requirements.
Passport: When opening a bank account, you must prove that you are who you say you are. Your passport acts as proof of identity. Banks require it because a passport is an official government document that requires a thorough vetting process before approval.
Proof of university enrollment: Proof of enrollment is the official document provided by a college or university that proves your enrollment status. Banks require international students to have it to affirm the state or school district they will study.
Secondary ID: An additional form of identification may also be required, such as a driver’s license or student identification card.
Most banks publish a list of documents that international students need to open a bank account on their website. Some may even request verification of financial accounts from their home country. To get a certified letter from the bank, for example, you’ll have to shell out a lot of money to have it couriered to you. To keep this from happening, you should verify and recheck that you have everything you need.
Select a Bank
Choosing which bank to work with is the next step to opening a bank account. Several financial institutions provide excellent plans for international students. These programs are designed with students in mind and help you get the most value for your money. Here’s a list of some popular banks in the US and their student banking options:
- Bank of America: Advantage Safe Balance Banking
- Capital One: 360 Checking Account
- Santander: Student Value Checking
- Chase: Chase College Checking
- HSBC USA: International Student Account
- TD Bank: TD Student Checking
- US Bank: Student Checking Account
- Wells Fargo: Student Checking Account
- Keybank: Student Checking Bank Account
In the United States, international students have the option of opening one of two bank accounts: a checking account or a savings account.
A checking account is one that you will use to make deposits and withdrawals from your bank on a regular basis. These accounts allow you to access your money whenever you want and provide a safe location to keep it. You can use these accounts to keep track of your daily expenditures and make bill payments.
A savings account is typically used for longer-term investments. When you save money over time or work part-time, you might earn a greater interest rate with a savings account.
You may be forced to pay for the following, depending on your bank account:
Monthly service or minimum balance: It is common for financial institutions to charge monthly service fees to customers who fail to maintain a particular minimum amount in their accounts, such as $1,000 or more. Nonetheless, some banks waive fees for students with student checking accounts.
Debit card: Student debit card fees may be monthly or per transaction. According to the Federal Reserve, the average debit card interchange fee for 2018 was $0.24 per transaction.
ATM: If you use the ATM too frequently in a billing period or use an ATM from a different bank, your bank may charge you a fee.
Transfer: These are the fees associated with moving money between banks or from one account to another.
When looking for a bank, you should research to see which one best fits your unique financial situation. Once you’ve decided on a bank, you may be required to pay an opening account charge. The amount is usually displayed on the bank’s website and will differ depending on the bank. For any issues with your account, don’t hesitate to contact a bank staff, who will be happy to help you.
Once you’ve settled in the United States, you’ll need to build a credit history to demonstrate to lenders that you’re financially responsible. Your credit history in your home country does not follow you to America. A good credit history in the United States can help you rent an apartment, qualify for a low-interest loan, and get lower vehicle insurance rates. Some firms will additionally check a prospective employee’s credit.
Consider applying for a secured credit card if you have no credit history in the United States. This card functions similarly to a standard credit card, with the exception that you deposit money into an account as collateral.
Using the secured card and paying off the balance each month is one of the finest strategies to create a strong credit history. If you continue to make on-time payments, you could be able to get an unsecured credit card.
You may take important security precautions to keep your financial information safe. Use strong and varied passwords, discard any emails asking account information—they aren’t legitimate—and routinely update digital devices to ensure they have the most up-to-date security protection. Sign up for text, email, or phone notifications for significant cash withdrawals, debit-card purchases, password changes, and possibly fraudulent account activity.
