When shifting to another country international students are advised to open a local bank account. The process can seem too complicated as banks in different countries have different systems. Thus, while students are busy preparing for moving to another country they tend to make mistakes in setting up their accounts. This blog will help reduce these mistakes and give you a step-by-step briefing on how to open a bank account for international students.
While we take care of all these queries you can focus on planning your university budget as an international student. The blog will answer questions like why opening a local bank account is important, things to keep in mind while choosing a bank, which bank to trust and what are the required documents.
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Also Read: If you are planning to open a Student Bank Account Online read this blog to understand the process one step at a time.
Why is opening a Local Bank Account Important for International Students?
As an International Student, opening a bank is very important so that you can save money and make easier loan repayments. The biggest profit of having a local account is that there will be no extra fee charges for currency conversions.
If you have taken loans or secured a scholarship then your bursar’s office will need you to open a local account to transfer your money easily. Opening a local bank can help you build a credit history in a new country which is useful in the longer run. Students are thus advised to open an account as soon as they reach their host country.
Also Read: Are you applying for education loans? If yes, know about the Interest Rates of Different Banks and NBFCs.
Things to Keep in Mind While Choosing a Bank
When choosing one bank over the other there are several things a student must consider. When opening an account in France, Germany, the US, the UK or Canada, whether applying for a credit or a savings account, these points will help you save money.
- Always check if the monthly maintenance charges are less.
- The bank should have little or no ATM withdrawal fees.
- The bank offers low loan interest rates and flexible repayment plans.
- The bank has decent Net Banking facilities for easy transitions.
- The customer service is quick and efficient.
- The bank should not have minimum balance limitations and even if it does the limitations should be manageable.
- There is a branch available near you.
- The overdraft limit should be more and monthly service fees should be less.
- Transfer fees should be less or nil.
- Currency conversion rates must be less in comparison to other banks.
- There should be access to generous rewards on payments.
Major Banks for Bank Account for International Students
In different countries, different banks are preferred. Here is a list of the top 5 banks in major countries where students mostly travel.
| Country | Trusted Banks |
| UK | Lloyds, HSBC, Barclays, Natwest, TSB. |
| USA | Bank of America, Wells Fargo, HSBC, USA, U.S. Bank. |
| France | Lydia, HSBC, Nickel, LCL, Société Générale. |
| Germany | N26, Deutsche Bank, DKB-Cash, Postbank, Volkswagen Bank. |
| Canada | CIBC, Scotiabank, RBC, BMO, ICICI. |
Documents Required
Mostly all banks ask for basic documents for verification purposes. In the list below are the necessary papers that must be presented during the time of applying. It is also advised that the applicant contacts the bank before switching countries so that they don’t miss any special papers needed.
- Passport and Student Visa for identification purposes.
- Second form of photo ID (driver’s licence or student card).
- Proof of residence.
- Proof of enrollment.
FAQs on How to Open Bank Account for International Students
All you need are the right documents to open a bank account in another country. Opening a bank account is not difficult for students in fact, by researching well you can end up making the most out of the services provided.
You might be allowed to fill in the application but to open a bank physical presence is mandatory. A student can only apply after shifting to the host country. This is why students must be mindful of carrying all the necessary documents in time.
When opening a bank account, always check the monthly maintenance charges. It is also important to see if the bank has little or no ATM withdrawal fees, low loan interest rates, flexible repayment plans, decent Net Banking facilities, quick customer service and minimum balance limitations.
No, while you can carry multiple current accounts and savings accounts, it is not allowed for a student to have more than 1 student bank account.
Out of the many banks, Lloyds, HSBC, Barclays, Natwest and TSB are the most trustable banks in the UK where students can make their bank accounts.
This was all about how to open a bank account for international students. To know more about education loans, the best bank accounts for students, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience.
