Opening a Bank Account
Once you arrive at your new institution, you will want to open a bank account at a local bank. It is sometimes possible to set up an account from abroad, and some international financial institutions allow you to write U.S. dollar checks on funds deposited abroad; but most local banks in the United States will want you to come in personally to set up your account. When you do so, bring your student identification, your passport, and the funds you wish to deposit.
Banks offer many different financial services. You may wish to compare the services and costs of several banks before choosing one at which to open an account. One bank may be more conveniently located than others; another may have more automated teller machines around town; a third may charge less to maintain a checking account; a fourth may allow you to do your banking from home via computer. Banks are competing for your business, so don’t be shy about asking questions. Ask your foreign-student adviser for recommendations on local banks.
A checking account will permit you to write checks to make purchases and pay bills. Most retailers and service providers will accept a personal check drawn on any U.S. bank (it need not be a local bank) as long as you can show appropriate identification (passport, student identification card, or driver’s license).
By using checks, it is easy to keep records of your purchases and payments. At most banks you need not keep a substantial sum (or “balance”11) in the account-just enough to cover your checks and any fees the bank charges to maintain the account. Many banks offer “overdraft protection,” enabling you to write a check that exceeds your balance with the understanding that you will pay interest on the overdraft amount. Finally, checking accounts have the advantage of providing you with immediate access to your funds.
Unlike most checking accounts, “savings accounts” earn interest on the balance in the account. If you plan to bring money for the entire academic year or for your entire academic program, you should be sure that your money earns interest! You can withdraw money from an ordinary savings account, but you cannot do so by writing a check.
Many banks offer so-called NOW (notice-of-withdrawal) accounts that combine the features of checking and savings accounts. With a NOW account, you may write a certain number of checks each month; such accounts can be very handy for students who maintain a relatively high balance and write relatively few checks.
Many students open a savings account and a checking account at the same bank so that they can transfer money from the interest-bearing savings account into their checking account as they need it.
Certificates of deposit (CDs) pay higher rates of interest than savings accounts, but your deposits must be made in certain amounts (usually in increments of $1,000 or more) and must remain in the bank for a specified period of time (usually a minimum of three months) before you can use them. The penalties for withdrawing money before the specified time has elapsed can be quite substantial. A CD account makes sense if you bring money that you will not need right away.
[Transferring funds to the US] [Other banking services]
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