How to Open a Bank Account in the US as a Student

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Are you a student moving to the US and wondering how to manage your finances effectively? How to open a bank account in the US is one of the first and most essential steps for international students to settle in. It not only helps you manage your money securely but also makes everyday transactions, such as paying tuition, rent, and bills, hassle-free. However, the process can feel daunting if you’re unfamiliar with the US banking system. Don’t worry! This guide will walk you through the steps, requirements, and tips for success on how to open a bank account in the US as an international student.

Why Do Students Need to Open a Bank Account in the US?

Why is opening a bank account necessary while studying in the United States? is a question you may be wondering. Maybe your parents sent you money each month via an app or wire transfer, or they gave you a credit card to use. Perhaps you already have an account that you can access overseas with a local bank back home.

But you know what? Having a bank account in the United States is still a smart idea. This is the reason:

Access: In the event of an emergency, you might have to wait for a transfer to clear if you depend on a family member or caretaker to pay your bills. Additionally, you might not be able to use a credit card to pay at certain establishments. Your money will be accessible when you need it if you have a local bank account.
Budget: Having a local bank account makes it much simpler to monitor your earnings and expenses, particularly when you can access and control your accounts instantly from a computer or smartphone.
Cost: International exchange costs, automated teller machines (ATMs), and bank transfers can be highly expensive. You can reduce these costs and increase your savings by using a local bank account.
Security: The majority of Americans do not carry large amounts of cash. Keeping huge sums of money in a sock drawer or luggage in your college dorm room is also definitely not the best idea. A local bank account is used to safeguard your funds.
Work: If you choose to work on campus or apply for a paid internship or job outside campus, your earnings will be transferred to your US bank account.

Is it Possible for a Non-resident to Open a Bank Account in the US?

Many banks in the United States require proof of address and a Social Security number in order to open a bank account in the US. As a non-resident, you won’t have these, thus you’ll need to find other options. The bank will usually want your Social Security number. Thankfully, there is a remedy called the ITIN. An Individual Taxpayer Identification Number (ITIN) can be used to open a bank account.

By filling out IRS Form W-7, IRS Application for Individual Taxpayer Identification Number, you can get one. For non-residents, opening a standard bank account can be challenging. There are other options, including a correspondent account, an overseas account, and a multi-currency account. You might be able to open an account in your home country with the help of these solutions.

How can I Apply to get an ITIN?

You only need to mail the IRS your W-7, identity evidence, foreign status documentation, and tax return in order to apply for an Individual Taxpayer Identification Number. Verify your identification and foreign status with original documents or certified copies from the issuing organization.

How to Choose a Bank

Open a Bank Account in the US

Inquire with the international student office at your school or visit their website to see if they have a bank that they recommend to their international students. Your bank account establishing process will go considerably more smoothly if the bank is accustomed to working with international students. Another option would be to look for a bank that has a branch near your school. You should evaluate the services and prices offered by some banks before deciding which one to use to open a bank account in the US.

The bank’s interest rate for savings accounts, overdraft protection, and checking account interest rates should all be found out. The time it takes for a check to “clear,” or how long it takes from the moment you deposit it into your account until you are permitted to take the money out, is another thing you should research. The hold on domestic and overseas checks varies by size, originating bank, and drawing currency; this can be anywhere from a few days to a week, or even more for non-US (or non-US dollar-denominated) checks. In general, wired money is available instantly.

Types of Personal Bank Accounts in the USA

The two primary types of bank accounts in the United States are checking and savings accounts.

1. The checking account

One type of student bank account that works like a dream is a checking account, which makes it simple to keep track of your monthly payments and manage your daily spending. It provides you with a debit card so you can withdraw cash at any time. Because they differ from account to account, always ask about the necessary monthly payments and maintenance expenses. The majority of students select this account because it is easier to manage spending.

2. Savings account

The primary use of a savings account is for high-interest, long-term deposits. Students with substantial financial resources benefit from this type of account. Before transferring their funds to a checking account, the majority of students first move them to a savings account. Remember to ask about minimum balances and servicing fees.

The paperwork required to open a bank account in the US

To open a bank account in the US, you will require

Provide your full name, home phone number, residential address, and campus phone number.
A letterhead with an address from a college or university
The second form of identification and your passport
A document attesting to your enrollment from your university

Certain banks require documents such as the I-94 card, I-20, DS-2019, and I-797 approval notification. International students are advised to create student bank accounts the traditional way, which involves making an in-person appointment. It is usually better to open a student bank account in person, even though many institutions will suggest that you can do so online. You can have a better understanding of your financial situation by speaking with a bank staffer.

Comprehensive Procedures to Open a Bank Account in the US

It’s time to open a bank account in the US after you’ve decided which bank is best for you. It may take a few minutes to an hour to open an account, so plan appropriately.

Compile all of the necessary documents.
Look for any other items the bank could need on their website.
In addition, you might need to provide $25 to $100 in cash to fund the new account.
Two types of identification are required:
- A U.S.-issued driver’s license or passport must be the primary form of identification. Certain banks and credit unions accept foreign passports and Consular IDs, including the Matricula Consular card.
- The second form of identification can be a bill with your name and address on it, a Social Security card, or a birth certificate.
At a typical bank, a bank professional will sit down with you to assist you with any paperwork and to address any issues you may have. However, the same information is still needed by online banks as by traditional banks.
Carefully read the instructions when you receive your card in the mail.
To activate the card or create your PIN, you will be prompted to phone a number.
Monitor your account to see how much money is accessible and to prevent any unforeseen expenses.

Best Banks to Open a Bank Account in the US

Open a Bank Account in the US

Before choosing a bank, it’s a good idea to confirm your requirements, such as why you want to open an account, the maintenance fee you’ll pay, which bank is closest to your school or residence hall, whether the bank has a mobile app, and whether international money transfers are easy.

1. Chase Bank

One of the largest banks in the nation, Chase Bank, has branches in almost every city and provides students between the ages of 17 and 24 with a legitimate checking account along with a sign-up incentive. Chase offers free service and a mobile application for its savings accounts. it is one of the best banks to open a Bank Account in the US for students.

2. Wells Fargo Bank

Wells Fargo Bank provides a reasonable interest rate together with a sign-up incentive. Due to its many locations and the largest ATM network in the country, which allows for 24/7 accessibility, this is one of the finest banks to open a bank account in the US

3. The Bank of America

Bank of America has more than 4200 locations and 16,000 automated teller machines across the country making it one of the best banks to open a bank account in the US for international students. There are no monthly fees associated with this account if you are a student under 25. Within the first 60 days of opening an account, you will additionally earn a $50 incentive if you request a debit card and execute ten eligible debit card purchases.

4. 360 Capital One

Since its mobile application has the highest customer satisfaction ratings among national banks, it may be a smart option to open a bank account in the US for students. You can open multiple accounts with 360 Capital One performance savings. One advantage of this bank is that it offers competitive rates without needing a minimum account balance, an opening deposit, or monthly fees.

What advantages come with opening a bank account in the US?

If you’re an international student with a bank account from your home country, the costs of your education and other expenses can mount up quickly. You may incur fees, such as currency conversion and foreign transaction fees if you access your account from your home country while in the United States. Creating a U.S. account will eliminate those extra expenses and offer many other advantages.

It’s easy to pay your phone, rent, and utility bills. Maintaining the convenience of bill payments is simple when automated transfers are set up for regular installments.

Get funds from another American account fast. Compared to a transaction into a foreign account, this transaction will expedite the arrival of your paycheck, financial aid, or scholarship cash.
Use your money wisely. Open a bank checking or savings account rather than storing large amounts of money you brought from home in your dorm room dresser.
Use a secured U.S. credit card to responsibly create a strong domestic credit score and begin constructing your American credit history. Applicants for secure cards are often required to have a bank account.
The greatest way to monitor your monthly expenses and savings is through your bank account. It helps with financial management. These 7 tips can also help you save money as a student studying overseas.

Things to consider before you open a bank account in the US

What is the minimum balance required in a bank account in the USA?
What are the monthly service fees?
What is the transaction limit?
Does the bank provide online and mobile banking services?
In what location are the branches?
What limitations apply to transfers of funds internationally?

Other Options for Student Bank Accounts in the US

There are numerous advantages to owning a bank account in the United States. However, there are other options you can choose from to handle your finances while living abroad in case you are unable to create a bank account in the United States.

1. Reloadable Prepaid Debit Cards

To add more money, you might choose to use a reloadable prepaid debit card. Additionally, you won’t be able to overdraw money with these cards. The main disadvantage is that it costs a high fee and doesn’t provide any ways to save money.

2. Neobanks

Neobanks are essentially app-based online banks that typically have outstanding features and competitive interest rates. This is the one for you if you don’t mind occasional technical issues and are at ease with having a virtual bank account in the United States!

3. Second-chance bank accounts

It might occasionally be challenging to be eligible for student bank accounts if your past bank account management is problematic. Furthermore, although this alternative bank account initially appears pricey, it eventually provides a better checking account.

The procedure to open a bank account in the US as a student is simple, but success depends on being prepared. The application procedure can be made simpler by choosing the appropriate account type and assembling the required paperwork, including your passport, visa, I-20 form, and evidence of residency. Spend some time looking into banks that provide accessible features like Internet banking and foreign transactions, cheap fees, and accounts that are ideal for students.

In addition to ensuring safe transactions and reducing currency translation costs, having a US bank account also helps you manage your money effectively. Once your account has been created, use the online resources to keep tabs on your spending and develop sound financial practices.

As a student in the United States, you will be well-prepared to handle your financial adventure with a little planning and the correct advice. Take control of your finances by beginning now!