An international student bank account is for students studying in colleges and universities abroad. Countries like the USA, the UK, Canada, and Australia are known for their high inflow of international students yearly, given the standard of education and quality of life that these countries offer.
As a student, when you move abroad to pursue your studies, you learn how to manage your assignments, work, social life, and, most importantly, money. For this, having an international student bank account is helpful and necessary to make the correct financial decisions and save as much money as possible.
What is an International Student Bank Account?
An international student bank account is designed to help international students on their study abroad journey manage their money better and benefit from rewards. It is ideal to make an international student bank account because of the host of features they offer, such as zero minimum balance, and cashless transactions. To open an international student bank account, you must be a student enrolled in a university with a valid student ID.
Bank Accounts for Students
There are two different types of international student bank accounts that you can select. Each has its characteristics and is best used for various purposes. When creating an international student bank account, research the different bank accounts available for students. To make it easier for you, we have listed the two main types of international bank accounts for students and their main differences:
Student Checking Account
A student checking account is meant for daily use, like making purchases, withdrawing cash, and paying bills. Generally, you will need a debit card to access your checking account. You may earn a little interest on the money you have in the account, but that depends on the bank.
Student Savings Account
A student savings account saves money and creates a safety net for emergencies. Access to this account is generally limited, and you can earn interest on your saved money. If you start earning through a student job as a teaching assistant or a barista, you can invest all your money into the student savings account and create a little trust fund for yourself.
Benefits of Opening a Bank account as an International Student
A student can always benefit from being an account holder, no matter the student's financial situation. Many banks offer several benefits for opening an international student bank account, some of which are:
- Eliminate the need for transaction fees:
You can make your payments in the local currency with your international student bank account and avoid any transaction fees that would generally occur with a normal bank account/debit card/credit card. The transaction fees are an additional expense you can altogether avoid by using an international student bank account and saving money.
- Track Finances:
Several international student bank accounts have provisions for tracking your spending. For example, they may have pie charts and percentages made at the end of the month, showing how you have spent your money - on travel, restaurants, or any other resources. This way, you know where you are spending your money.
- Enjoy Discounts and Offers:
As you open an international student bank account, banks offer discounts and offer online resources, hotels, restaurants, and entertainment. Students can use these freebies and benefit from the international money transfer service.
- Money Management:
Having an international student bank account teaches students money management skills while helping them improve how they save and budget. One of the biggest advantages of an international student bank account is that it teaches students to be more responsible with their money.
- Ease of Payment:
An international student bank account is accepted everywhere you go, making payments and transfers more accessible. On the other hand, local bank accounts have limitations, such as most of them being accepted in the most minor and significant places. Along with that, internet banking and phone banking also get more accessible with an international student bank account. You can find several branches of your bank across the city.
- Cashless Transactions:
With your international student bank account, you can carry out cashless transactions as you can pay on the go with mobile apps and payment apps like Apple Pay. This way, you save up on liquid cash and pay more sustainably.
- Build a Local Credit History:
If you choose to stay back in the country to explore post-graduation employment options, having an international student bank account from your time in college can help you build a good credit score over time, that too in a new country.
How to Open an International Student Bank Account?
You can open an international student bank account online with the help of online banks like UniZest and GoStudy. Some of the documents you will need are
- Passport - Scanned copy
- Photo ID
- Student ID
- Proof of residency in the country
- Proof of enrolment in a university
- Student Visa.
If you want to open an international student bank account in the UK, online banks like UniZest can make it easy for you. They offer a host of benefits, such as tracking and managing your finances online and availing offers and incentives crafted for students, along with a debit card upon opening an international student bank account with UniZest.
On the other hand, if you are opening an international student bank account in Australia, GoStudy Australia is an online international student bank account crafted for students who study in Australia. It is free to open and track, and with in-branch options for students, you can avail of discounts and banking benefits with GoStudy Australia.
In the USA, Lorien Finance is an e-account for students studying, helping you easily create your international student bank account. With Lorien Finance, you can find 360-degree support for a student's financial needs, from education loans and debit cards to a no-minimum balance account. Know more about how to open a student bank account in the USA.
International Student Bank Account vs. Normal Student Account
Critical differences between an international student bank account and a normal student bank account are necessary to note while choosing a bank account.
International Student Bank Account Normal Student Bank Account
You can open a zero-balance account. A minimum balance of a certain amount is required to maintain the account.
Take loans easily without worrying about overdraft fees. The overdraft Fee must be paid in case of additional expenses.
Banks offer cashback on products and services relevant to students. Banks provide a significantly lower number of rewards for normal bank accounts.
With the emergence of student-friendly services, the study abroad journeys of students have become easier and more accessible. All thanks to services like an international student bank account, students learn how to manage money and get financial independence.