Opening a bank account in the USA is often one of the first tasks for international students upon arrival. Since many everyday transactions in the US, such as paying rent, making purchases, or managing scholarships, are handled through local bank accounts, it's important to get informed about the different options early on. This guide will tell you about the pros and cons of opening a US bank account, what alternatives exist, and how Smarthlete recommends approaching this topic.
Having a personal bank account is particularly convenient for international students, as it significantly simplifies financial management in daily life. Here are the main reasons:
Easy transactions: A US bank account allows you to directly pay rent and other bills, and provides a local debit card for purchases.
Access to ATMs: With a US bank account, you often have access to a wide network of ATMs, making it easier to access cash for everyday needs.
Simple paycheck handling: If you have a campus job, your paycheck will typically be deposited directly into a US bank account.
Lower transaction fees: International wire transfers and transactions in foreign currencies can be expensive when processed through an account in Europe. A local account significantly reduces these fees.
Advantages of a US Bank Account
Convenient payment processing: Most universities accept US bank accounts or credit cards for paying tuition and other fees. With a US account, you avoid the high overseas fees charged on European accounts.
Local debit card: With a US debit card, you can withdraw cash from ATMs and make easy in-store payments.
Direct handling of daily expenses: Rent, bills, and memberships can be paid more easily and often without additional fees.
Easy access to cash: With a US bank account, you have access to a network of ATMs that are typically linked to your account.
Paycheck deposits: If you have a campus job, a US account is usually required, as your wages will be directly deposited there.
Access to services like Zelle, Venmo, etc.
Disadvantages of a US Bank Account
Cumbersome opening process: Opening an account can be time-consuming and often requires a personal visit to a branch. You'll typically need your I-20, passport, and visa.
Currency conversion: International students often need to convert Euros (or another currency) to US Dollars, which can lead to additional fees.
Possible maintenance fees: Many US banks charge monthly account maintenance fees, unless certain conditions (e.g., a minimum balance) are met.
Limited flexibility: Once you leave the country after your studies, maintaining the account can be quite difficult.
Smarthlete recommends that international students open a WISE account before considering a US bank account. Wise (formerly TransferWise) offers a multi-currency account specifically designed for international transactions, helping to avoid the high conversion and transaction fees of traditional banks.
Advantages of a Wise Account
Low transaction fees: Wise offers the best exchange rates on the market, meaning you pay less in fees when converting Euros to US Dollars.
Multi-currency account: You can hold balances in multiple currencies (Euros, Dollars, Pounds, etc.) and efficiently manage your finances.
Virtual and physical debit card: Wise provides a debit card that allows you to pay and withdraw cash globally without high foreign transaction fees.
Easy account opening: Wise account opening is completely online, without the need to visit a branch. You can set up your account before arriving in the USA and convert money to US Dollars to minimize fees on-site.
Security: Wise is fully regulated and offers a secure and cost-effective way to manage money internationally through transparent fee structures.
Disadvantages of a Wise Account
No local bank connection: Some US universities require a local US bank account for certain payments.
No access to ATM networks: Unlike traditional US banks, Wise has no own ATMs, so fees may apply for cash withdrawals.
Limited compatibility: Some American companies only accept local US bank accounts for payments (e.g., rent payments), which can be problematic in some cases.
Despite the many advantages of a Wise account, there are certain situations where opening a US bank account can be beneficial:
Longer stays: If you plan to stay in the US for more than a year, a local US bank account offers more flexibility.
Campus job income: If you take a job on campus, a US account is often the only way to receive your paycheck.
Special payments: Some universities do not accept transfers from international accounts for certain fees (e.g., campus housing rent).
If you decide to open a local bank account, keep the following steps in mind:
Gather the required documents:
Passport and visa
I-20 form
Proof of address (e.g., lease agreement or university letter)
Social Security Number (if available)
Choose the right bank:
Major US banks like Bank of America, Chase, or Wells Fargo offer special student account models.
Research the fees and conditions to find the best option.
Open an account at a branch:
Schedule an appointment at a branch after your arrival.
Clarify the account conditions (e.g., minimum balance, maintenance fees, debit card).
Receive your access details:
After opening the account, you will receive a debit card and online banking credentials.
Tip:
Ask your coach or the university's international office if they have recommendations for banks. There are often partnerships with local banks that offer better conditions for students.
If you plan to study in the USA for several years and possibly work on campus, opening a local US bank account may be worthwhile. However, for getting started and managing your finances, we recommend beginning with a Wise account. It is flexible, cost-effective, and easy to manage – ideal for the first few months in a new country.
If you need support with opening an account or have questions about the best options for you, our team is happy to assist. We'll help you make the best choice for your studies and daily life in the USA.