A quick guide to setting up an international bank account for students
Studying abroad excited each one of us. Getting our visas and preparing to move out seems to be the happiest times of our lives. However, it also comes with some unique challenges that we have never faced before. One of the most important things you’ll need to handle is managing your finances while living in a different country.
Having an international bank account can make your life much easier by allowing you to access money, make smooth payments, and transfer funds without the hassle of currency exchange.
Let’s walk through the step-by-step process of setting up an international bank account, covering everything from the documents you’ll need to choose the best bank for your needs and understanding the fees.
1. Search for the best banks
Before opening an international bank account, it’s important to do some research on which banks offer services favorable to students. Many banks offer special student accounts with lower fees or perks like discounts, travel insurance, or no minimum balance requirement.
Here are a few things to consider when choosing a bank:
International accessibility: Look for a bank that has branches or partnerships with banks in your home country. This can make it easier to transfer money.
Online Banking features: Make sure the bank offers a user-friendly application or website so you can easily manage your account and make transactions from anywhere.
Student benefits: Many banks provide special student accounts, so check if your chosen bank offers any such features like lower fees or discounts on services.
Keep in mind, that it’s always a good idea to go with a bank that has an international presence. This way, you can easily access your funds when traveling or studying abroad.
2. Keep all your documents gathered
To open an international bank account, you will need to present a few important documents. Each bank may have slightly different requirements, but generally, you will need the following:
- A valid passport is required as proof of identity.
- A visa or residency permit shows your legal status in the country where you’re studying.
- Most banks will ask for a letter from your university or school to verify that you’re a registered student.
- You may need to provide a utility bill or rental agreement to confirm your address in the country.
- Some banks may ask for proof of income, especially if you’re opening a checking account with overdraft protection.
3. Understand the Fees and Charges
Different banks charge different fees for their services, so it’s important to understand the fees that come with your international bank account. Common fees include:
- Some banks charge a monthly fee for maintaining your account, while others offer fee-free accounts for students.
- If you’re using an ATM that’s not in your bank’s network, you may be charged a few for withdrawals.
- When it comes to sending money internationally, many banks may charge a fee for this service. But some money sending apps offer a convenient and cost-effective solution for exchange rates and allows you to send money to your home without charging any fees., By choosing the best app to transfer money, you can save more and send money abroad more efficiently.
4. Choose the right account type
Banks usually offer different types of accounts, so you’ll need to decide which one is the best for your needs.
Current account:
This is a basic checking account that allows you to deposit and withdraw money easily. It’s perfect for daily transactions like paying bills or shopping.
Savings account
If you want to save some of your money for the future, a savings account will earn you interest. However, it may not allow frequent withdrawals like a current account.
Student account
Some banks offer student accounts with special benefits such as lower fees and interest-free overdrafts. Make sure you check if the bank offers one of these accounts for students.
If you’re unsure about which account to open, speak to a bank representative who can guide you toward the best option.
5. Make your initial deposit
Once you have chosen the bank and the account type, the next step is to make your initial deposit. Most banks will require a minimum deposit to activate your account. The amount can vary, but it’s usually between $50 and $100.
Make sure you ask about the minimum deposit requirement before you go to the bank so you can prepare in advance.
6. Activate online banking and get your bank card
Once your account is open, you will be able to activate online banking. This is an important step. This will allow you to manage your account from anywhere in the world. The bank will also provide you with a debit or ATM card that you can use to withdraw money, make purchases, and pay for services.
Make sure you activate your online banking account and download the bank’s mobile app. This way, you can check your balance, make transfers, and pay bills while on the go.
7. Transfer funds and manage your account
After your account is set up, it’s time to send money from your country to your home country. Make sure you use the best app to transfer money if you want to avoid high fees and exchange rates. TangoPay, a revolutionized fintech app, allows you to send money from the UK to 70+ countries across the world with zero fees and unbeatable exchange rates. Therefore, it’s a great alternative to traditional bank transfers charging you hefty fees.
8. Consider using additional services
As you get settled in your new country, you may find that you need additional banking services, such as:
- If you need to exchange currency, check if your bank offers competitive rates.
- Some accounts allow you to borrow a small amount of money if you run out of funds.
- You may also consider applying for a credit card. However, make sure you look out of fees, interest rates, and spending limits.
Conclusion
Setting up an international bank account as a student is an important step in managing your finances. By carrying out the right research, and understanding the ins and outs of banking in your respective country, you can easily manage your finances with ease.
Good luck with your studies abroad. And remember to stay financially savvy!
