2 Opening and Using a Bank Account
Opening an Account: Step-by-Step
- Choose a Bank: Decide if you want to open an account at a traditional bank or an online bank. For your first account, a traditional bank might be easier since you can visit a branch in person if you need help.
- Gather Documents: To open an account, you’ll usually need:
- A government-issued ID (like a driver’s license or passport)
- Social Security number
- Proof of address (like a utility bill or a rental agreement)
To open a bank account in the United States, international students typically need to provide a variety of documents. The exact requirements can vary depending on the bank, but generally, you can expect to need the following:
- Passport: A valid passport is essential as it serves as the primary form of identification for international students.
- Student Visa (F-1, J-1, etc.): You’ll need to present the visa that allows you to study in the U.S.
- I-20 or DS-2019 Form: This document is issued by your educational institution and confirms your status as a student in the U.S.
- Proof of Enrollment: A letter from your university or college confirming your enrollment can be required.
- Proof of Residence: This could be a utility bill, lease agreement, or a letter from your university’s housing office. Some banks may help you if you don’t know your home address or still finalizing your apartment or house.
- Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN): While some banks may require an SSN, others might not, especially if you provide an ITIN or if you are opening a non-interest-bearing account.
- It’s advisable to contact the bank directly or visit their website to confirm the specific documents they require, as procedures can differ between institutions.
3. Visit the Bank or Go Online: If you’re opening an account in person, visit the bank and talk to a banker. If you’re doing it online, you’ll go to the bank’s website and fill out an application.
4. Choose Your Account Type: Most people will want to open both a checking and a savings account.
5. Make a Deposit: Some banks require a small initial deposit to open an account (like $25). You can usually deposit cash, a check, or transfer money from another account.
6. Set Up Online Banking: Once your account is open, you can set up online banking to manage your money from your phone or computer.
Using a Debit Card
Once your account is open, you’ll receive a debit card in the mail. This card is linked to your checking account and lets you spend money directly from your account. You can use it at:
- Stores: Swipe or insert the card at the checkout.
- Online: Enter your card number and details to make online purchases.
- ATMs: Withdraw cash from an ATM. Be sure to use your bank’s ATM to avoid extra fees.
Bank Fees
Banks sometimes charge fees for different services. Here are the most common ones and how to avoid them
- Monthly Maintenance Fee: Some banks charge a monthly fee just for having an account. You can often avoid this fee by keeping a minimum balance (e.g., $500 in your account). Also, most banks offer student accounts without maintenance fees (Be sure to provide student ID)!
- Example: Chase might charge a $12 monthly fee unless you have direct deposits or a certain balance.
- Overdraft Fee: If you spend more money than you have in your checking account, the bank may cover the extra amount, but charge you an overdraft fee (e.g., $35). To avoid this, always make sure you have enough money in your account before making a purchase.
- Example: If you only have $50 in your account, and you spend $60 on groceries, your bank might charge you $35 in fees for overdrawing.
- ATM Fees: If you use an ATM that’s not part of your bank’s network, you may be charged $2-$5 per transaction. Avoid these fees by using ATMs that belong to your bank.
