Banking

There are numerous ways of banking options in the United States, and too many banks to list here. Finding the right bank for your needs depends on where you will be living, how much money (on a monthly average) you will need to keep in your account, and how often you will need to visit a branch to complete your transactions.

For convenience, you may wish to select a larger bank, that has convenient branches throughout Southern Califoinria. Options inlcude, Bank of America, Washington Mutual and Wells Fargo.

Opening an Account

To open a bank account in America, you will need to make a minimum deposit. Depending on the type of account you choose, the amount may be quite small (perhaps as little as $100).

When you want to put your money into a bank, there are a few things you will need, including:

  • Identification (social security card, taxpayer card, driver's license, or passport)
  • Student ID or I-20
  • Money (can be cash, check, travel check, or credit/debit card)

Types of Accounts

The most common types of accounts international students use are:

  • Checking Account

An account where funds are made available to the account holder and deducted when the account holder writes a check, uses a debit/check card, or withdraws funds from an ATM or branch of the bank. Usually a checking account does not pay interest; however, some checking accounts pay minimal interest on cash balances.

  • Savings Account

    A savings account gives you interest over your balance. It offers higher interest than the checking account, if the checking account pays interest. You can transfer and withdraw money freely from a savings account, but you must keep a minimum balance which is stated by the bank (usually $1,000 - $1,500).

  • CD Account

A CD account pays a specified amount of interest (higher rate than checking and saving account) over a specified amount (at least $5,000)of time. However, it may not be convenient since your money may be unavailable for a specified amount of time.

Helpful Tips

The following information provides you some useful tips when you choice a bank:

  • Calculate how often you will be transferring money from overseas accounts, how often you will be making deposits, and how many checks you will be writing every month.
  • determine how much money you will be keeping in your account. Most banks will waive fees for basic services if you maintain a minimum monthly balance in your account.
  • If you will be keeping large amounts of money in your account, consider a bank that offers an interest earning checking account, or a savings account that is linked to your checking account.
  • Find out what the banks available to you will charge for the services you need. Also find out what rules and restrictions exist for the account that you choose, and also what penalties will be charged if you don’t follow those rules.
  • Remember to choose a bank that is insured by the FDIC (Federal Deposit Insurance Corporation); it will mean that your funds will be insured by the US federal government up to $100,000, should anything happen to the bank.
  • You have many banks to choose from, so if the first one does not satisfy all your needs, simply change to a new one.

 

  

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