Navigating Bank Account Options for International Students in the U.S.

The U.S. banking system can seem complex, especially for international students. This article breaks down the essentials of opening and managing bank accounts, providing clarity and guidance for a smoother financial transition to university life.

Understanding the Basics

Before diving into specific bank options, it's crucial to grasp the fundamental types of accounts and associated terminology.

Checking Accounts: Your Everyday Banking Hub

A checking account is designed for your day-to-day financial activities. It provides a secure place to store your money and allows easy access for managing daily expenses and paying bills. Key features include:

Accessibility: Access your funds whenever needed.
Debit Cards: Often provided upon opening an account, debit cards enable transactions using funds directly from your checking account. When applying for a debit card, you may need to provide your Government-issued photo ID or driver’s license, Passport and Birth certificate and Proof of address. Once you are approved for a checking account, a debit card is often provided to you.
Overdraft Protection: When you spend more money than available, you enter an overdraft. Banks offer options to manage this, such as:
- Linking a savings account for automatic transfers.
- Linking a credit card.
- Overdraft line of credit (based on creditworthiness).
- Overdraft coverage for one-time transactions.

Savings Accounts: Building Your Financial Future

A savings account is intended for longer-term deposits. It's where you store money not needed for daily expenses, often earning interest on the balance. This makes it ideal for:

Long-term goals: Saving for milestones.
Emergency funds: Creating a financial safety net.
Cultivating financial habits: Incorporating sound financial practices.
Overdraft protection: Some savings accounts offer overdraft protection for linked checking accounts within the same institution.

High-yield savings accounts, available at traditional and online banks, offer significantly higher interest rates, making them an excellent option for maximizing savings, particularly if you don't need frequent access to the funds. However, be sure to check for any requirements or fees associated with maintaining the account.

Decoding Bank Jargon

Banks often use specific terms and offer various benefits to attract students. Here's a breakdown of what some of them mean:

ATM Fees: U.S. banks typically charge fees for using ATMs from other banks. Choosing a bank with a wide ATM network can help avoid these charges.
Minimum Deposit: Some banks may require a minimum deposit to open a savings account.
Monthly Service Fees: These are fees charged monthly for maintaining the account, usually ranging from US$6 to $50. However, these fees are often waived for student accounts or can be avoided by maintaining a minimum balance or having regular monthly deposits. Always verify the bank's policy on monthly service fees.

Opening Your Bank Account: A Step-by-Step Guide

Opening a bank account is a crucial step for international students. Here's a detailed guide on how to do it:

Gather Required Documents:
- Identification: A valid passport with a photograph is essential. You may also need secondary forms of identification, such as a student ID card, birth certificate, driver’s license, or a letter from your university's international student and scholars office.
- Proof of Address: Students will need acceptable forms of identification and proof of address when opening a bank account.
- I-20 Form: An I-20 (certificate of eligibility for non-immigrant student status) or I-797 approval notice.
- Letter of Acceptance: A letter of acceptance from your university.
- Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN): While not always mandatory for opening basic accounts, an SSN or ITIN is often required for earning interest on savings accounts or applying for credit cards. As we can see with the types of accounts and the documents required to open such an account, there is a clear before and after having a SSN.
- Initial Deposit: An amount of money to deposit into the account (this amount varies between banks).
- Employment Authorization Card with photo.
Choose a Bank:
- Research different banks, considering factors like:
  - Monthly fees or service charges: Look for student accounts that may waive these fees.
  - ATM accessibility: Choose a bank with ATMs near your campus to avoid fees.
  - National vs. State Bank: Opt for a national bank like Bank of America or Chase for broader ATM access, especially if you're an international or out-of-state student.
  - FDIC Insurance: Ensure the bank is secured by the Federal Deposit Insurance Corporation (FDIC).
- Consider these popular options:
  - Traditional Banks: Well-known banks such as Chase, Bank of America and Wells Fargo are popular for their wide branch networks, online services, and international banking capabilities.
  - Credit Unions: These nonprofit institutions often provide better interest rates and lower fees than traditional banks. Some universities have partnerships with credit unions, which may offer student-focused services.
  - Online Banks: Banks like Ally Bank, Discover Bank, or Chime offer high-interest savings accounts and checking accounts with fewer fees. These banks are ideal for students who prefer online and mobile banking and don’t need access to a physical branch.
Set an Appointment:
- Many banks allow you to apply for a new bank account online in just a few minutes, by simply entering in the information you’re asked for.
- To open your bank account, set an appointment to meet with an associate at a financial center. Please bring all the required identification and documents shown above to your appointment.
Complete the Application:
- Visit the bank in person with all required documents. Although it is possible to open a bank account over the phone or online, if you are an international student it might be easier to open your account in person in case there are any complications.
- Fill out the application form, providing accurate information. You will need: Your full name, home address, home telephone number, your campus telephone number and your college address.
- Make your initial deposit. At the time of your account opening, you can fund it by making a deposit at the bank. You also may be able to electronically move funds to your account one of these ways:Direct Deposit, Wire transfer and eCheck.
Receive Your Debit Card:
- Once your application is approved, you will receive a debit card, which you can use to make purchases and withdraw cash.

Important Considerations

Soft Copies of Identification: Students may need to use original IDs when opening an account. Many banks do not consider screenshots or copies of IDs acceptable forms of identification. You may also want to check that your IDs are valid and not expired before opening an account.
Parental Presence: International students generally do not need a parent or guardian present to open a student checking account. Banks often base account holders’ eligibility on a certain age range or enrollment in an accredited educational institution.
Language Assistance: Whether or not you speak English proficiently, Bank of America is ready to provide advice and guidance to meet your financial needs. We have language interpretation services that allow us to assist you in over 206 languages. Simply visit your nearest financial center and request interpretation services for the language you’re most comfortable speaking.

Managing Your Finances: Transfers, Fees, and Funding

Effectively managing your bank account involves understanding how to transfer funds, avoid fees, and keep your account funded.

Sending and Receiving Money

International Wire Transfers: You can send international and domestic wire transfers using our Mobile Banking app and Online Banking.
- Required Information:
  - The exact amount of money you wish to send.
  - The recipient’s full legal name and current address.
  - An address and name for the recipient’s bank or transfer service provider.
  - The recipient’s bank account number and account type.
  - A SWIFT or BIC bank code for the recipient, where applicable.
  - Your purpose for the transfer.
  - Your driver’s license or other form of Government-approved ID, if sent from your bank branch.
- Mobile Validation: In addition, your mobile phone may be needed for a one-time passcode to validate the transfer.
- Transfer Time: International wire transfers generally take 1-5 business days. Transfer cut-off times, federal regulations, weekends and bank holidays can affect how long it takes to transfer money overseas.
Digital Transfers: Often times, banks allow you to set up digital transfers to external accounts online or via app.
- Fees: Some banks may not charge a fee for sending or receiving money from another bank when making digital transfers. Note that some banks charge a fee to move money to different banks, so you may want to check the terms and conditions prior to starting a transfer.
- Transfer Time: For transfers to or from different banking institutions may take 2-3 business days.

Funding Your Account

Direct Deposit: Direct deposit is a common electronic payment method used for a company’s payroll process. When employees enroll in direct deposit, a company can send money for single payments or on a recurring basis. To make a direct deposit, a company sends money directly to the account the employee has designated with their employer.
Wire Transfer: A wire transfer is another way to move money electronically between banks. A wire transfer relies on the individual bank to process the transaction and transfer the money from payer to payee. The money only moves when the bank confirms that there is enough money available to complete the transfer.
eCheck: An eCheck is a type of electronic funds transfer (EFT), which is an exchange of money between bank accounts. eChecks may be a one-time or recurring electronic payment used in place of a paper check. They are generally processed within 3 to 5 business days of being issued.

Maintaining Sufficient Funds

Minimum Deposit: You may not need to make a deposit when opening the account. However, you will need to add funds to the account prior to using it.
Overdraft Fees: If there isn’t enough money in your checking account to cover a purchase, you may be charged an overdraft fee.
PNC Alerts: PNC Alerts are free to customers. However, third party message and data rates may apply. These include fees your wireless carrier may charge you for data usage and text messaging services. PNC does not charge a fee for Mobile Banking, including PNC Alerts. However, third party message and data rates may apply.

Bank Account Options for International Students

Here's a look at some bank account options for international students in the US:

Bank	Account Name	Fees	Features
TD Bank	TD Student Checking or International Student Banking Package	\$0 if aged between 17 and 23 years old	Mobile banking, thousands of ATMs across the country, \$125 bonus (dependent on criteria), digital wallet, access to TD Global Transfer and savings and investment accounts
Capital One	360 Checking Account	\$0	Mobile banking, online bill pay, overdraft options, access to 40+ currencies and bank details to use as a local in certain countries
Santander	Student Value Checking	\$0 for students aged between 14 and 25 years old, fee waived with one transaction per month	Mobile banking, discounts on Santander savings accounts, no minimum balance, transfer money internationally
Bank of America	Advantage Banking account		Checking, savings and credit card accounts can help you eliminate foreign transaction fees and gain convenient ways to pay for books, food, rent and other essentials.
PNC	Simple Checking		A checking account is a place to deposit money that you receive by check or direct deposit, including financial aid awards and money from home. A checking account will provide you with an accurate, monthly record of any funds that were deposited, spent or withdrawn.

There are also banks that are state specific, such as the Bank of California, so it is always worth researching what your university state has on offer. There are also a number of online-only banks such as Monzo, Starling, Ally, Simple and Chime.

Read also: Banking Options at Penn State

Additional Banking Tips

Zelle®: Zelle® should only be used to send or receive money with people you know and trust. mobile phone number. Neither PNC nor Zelle® offers purchase protection for payments made with Zelle® - for example, if you do not receive the item you paid for, or the item is not as described or as you expected. Transactions typically occur in minutes between enrolled users. If the recipient has not enrolled, the payment will expire after 14 calendar days. See the PNC Zelle Terms of Use for additional terms and conditions.
PazeSM: Some merchants may require that an account be created with them before PazeSM can be used at checkout. Paze may not always be available during checkout for a given merchant. Enrollment in PNC Online Banking is required to use Paze. Terms and conditions and certain eligibility criteria apply.

Banking for younger children, teens and young adults.

Help empower children, teens and young adults on their path toward financial independence. Choose from an account with features that teens and young adults need or select our parent-owned account with guardrails for younger children. Designed to give kids hands-on experience using a debit card, while parents stay in control. Teens ages 16+ may apply as the sole owner of the account. Once your child needs to regularly deposit money into the account, such as when they start a job or need direct deposit, you can graduate them to a Bank of America Advantage SafeBalance Banking® account. The account number and debit card number will stay the same. Both accounts are automatically set to the Decline All overdraft setting and cannot be changed. Parents can set controls on spending categories, spending and withdrawal limits. your child can only view their account when they log in with their Online ID. SafeBalance® for Family Banking allows for one parent owner and one child on an account.

Read also: Is Citizens Bank Right for You?

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