An identification number can be one or more of the following:
- A taxpayer identification number;
- passport number and country of issuance;
- alien identification card number; or
- number and country of issuance of any other government-issued
document evidencing nationality or residence and bearing a photograph or
similar safeguard.
It is important to remember that banks establish their
own CIPs and may ask for additional documentation than is described above
because they are ultimately responsible for establishing the identity of
their customers.
Documentation to Bring with You
Documents you should take with you to open your account:
- Your unexpired passport
- Your I-94 card
- Your I-20, DS-2019, or I-797 approval notice
- Any secondary form of identification you may have
- Form W-8 BEN if you are a student not eligible for a
SSN or ITIN
- Letter from your institutions ISSS office
- To assist you, your institution's ISSS office may provide
you with a letter to the bank confirming your status at [your institution]
and asking for their assistance in opening your account.
Taxpayer Identification Numbers
Banks are required to report any earnings you receive on interest earned
on your account. For this reason they will ask you for a taxpayer identification
number such as the Social Security Number (SSN) issued to those who work
or the Individual Taxpayer Identification Number (ITIN) issued by the Internal
Revenue Service (IRS) to those individuals who are not eligible for a Social
Security Number. Although the banks would greatly prefer that you already
have one of these numbers, you can still open a bank account if you do not
have one.
If you are an F-1 student who is not employed, you are
not eligible for a Social Security Number. You must apply for an ITIN through
the IRS instead.
Once you have submitted your ITIN application, it will
take the IRS approximately 4 to 6 weeks to assign you a number. If your
the bank account does not pay any interest, then you must wait to file for
your ITIN when you file your required tax forms in April.
How Do I Open a Bank Account?
Some ESL schools have
relationships with banks where they refer their international students.
Ask your international student office or check their website for any guidance
to a specific bank. If a bank is used to seeing international students for
new accounts, things will go smoother.
How Do I Choose a Bank and an Account?
Banks offer many different financial services. You may wish to compare the
services and costs of several banks before choosing one at which to open
an account. If your school has a relationship with a particular bank for
all of its international students, you should certainly consider that bank
first. You will need a checking account for proper money management
(for writing checks, online bill payment, debit cards, etc.), and if you
have large amounts of money just sitting in your account, it may make sense
to open a savings account as well.
Ask how long it will take to "clear" a check
- that is, how long from the time a check is deposited in your account until
the time you are allowed to withdraw the funds. Typically wired funds are
available immediately, but the "hold" on checks (local, out-of-state
and foreign) varies by state and by bank, and can be several days to a week
or even longer.
Most major US banks offer "student checking",
accounts and services designed specifically for students - here's a small
sample:
Bank of America
Wachovia
Initial Money Needs on Arrival
You should evaluate your needs for the first few weeks of school - most
schools suggest bringing about $2,000 in readily available funds. You can
bring this amount in traveler's checks, or better yet, bring your foreign
bank card, after checking that it will work in US ATMs (automated teller
machines), to access an account at home. All other money can be wired to
your new US bank account after you arrive. Remember, if you have a scholarship,
assistantship or another form of employment, it will typically take a month
or more to get your first payment, so make sure you have enough money to
live for your first few weeks.
Before you arrive, find out from your bank at home how
to wire money to the US, and how much it will cost in fees. After you have
set up your new bank account, you can arrange the transfer by providing
your home bank with your US bank details. You will need to provide your
account number, the US bank's name and address, and the US bank's ABA number.
Wire transfers typically take between 2-5 days. Ask your home bank for a
confirmation once the funds are wired.
US Monetary System
The US Monetary System is a decimal system, with one dollar
equal to one hundred cents. One dollar is written as $1 or $1.00. One cent
is written as 1¢. One dollar and twenty-five cents would be written
as $1.25. Dollar amounts are written with a comma every three digits, so
one thousand dollars would be written as $1,000.00.
Paper currency is used for amounts of $1 or more, and coins
are used for amounts under $1. The most common coins and their dollar equivalencies
are as follows:
| Coin |
Figure on Front |
Value (Cents) |
Value (Dollars) |
Color |
| Penny |
Lincoln |
1 cent |
0.01 dollars |
Copper |
| Nickel |
Jefferson |
5 cents |
0.05 dollars |
Silver |
| Dime |
Roosevelt |
10 cents |
0.10 dollars |
Silver |
| Quarter |
Washington |
25 cents |
0.25 dollars |
Silver |
| Half Dollar |
Kennedy |
50 cents |
0.50 dollars |
Silver |
| Dollar |
Susan B. Anthony |
100 cents |
1.00 dollars |
Silver |
The front of the coin with the face is called "heads"
and the other side is called "tails". If you need to make a random
choice, you can toss a coin and call it "heads" or "tails"
while it is still in the air. If the side you call is up after the coin
lands, you win the coin toss.
Paper currency is most often circulated in the following
denominations: $1, $5, $10, $20, $50, and $100. Occasionally you will encounter
a $2 bill.
All currency is green and printed using special paper.
The slang term for a dollar bill is a "buck", so $20 might be
described as "twenty bucks".
Each denomination includes a picture of a famous American
statesman on the front. The following table describes the images on the
various denominations.
| Denomination |
Portrait on Front |
Illustration on Back |
| $1.00 |
George Washington |
Great Seal of the United States |
| $2.00 |
Thomas Jefferson |
Declaration of Independence |
| $5.00 |
Abraham Lincoln |
Lincoln Memorial |
| $10.00 |
Alexander Hamilton |
US Treasury Building |
| $20.00 |
Andrew Jackson |
White House |
| $50.00 |
Ulysses S. Grant |
US Capitol Building |
| $100.00 |
Benjamin Franklin |
Independence Hall |
Checking Accounts
To open a checking account, visit a bank and ask to open
a checking account. You will need to deposit money into the account when
you open it. You can deposit cash or traveler's checks, or arrange for a
wire transfer from your home bank (cost around $35). American Express also
offers a variety of services that make it easy to withdraw money from your
checking account back home. Additional deposits and withdrawals may be made
at any time.
You can withdraw money from your account using a check
or an Automatic Teller Machine (ATM) card. The check is a negotiable order
of withdrawal that tells the bank to pay the money to the payee by withdrawing
money from your account. When you open the checking account the bank will
provide you with an initial set of checks with your name and address printed
on top. Additional checks can be ordered in a variety of designs for a fee.
If there insufficient funds in your account to cover the
check, the check will "bounce" and your account will be overdrawn.
This means that the bank will refuse to honor the check and will return
it to the depositor. In addition, the bank will charge you a bounced check
fee of $15 to $35, so it is important to make sure you always have sufficient
funds in your account to cover any outstanding checks. If the payee tries
to deposit the check again (sometimes their bank will do this automatically),
you will be penalized with a second bounced check fee for the same check.
Many international students expect the bank to pay checks even when their
account is overdrawn, and get a rude and expensive shock when they discover
that the US banking system handles overdrawn accounts differently.
When writing a check, the amount of the check is written
twice, once using numerals and once using words. If you were writing a check
for $23.35, you would write the words as "Twenty-three and 35/100 dollars",
where the word "and" separates the dollar amount from the cents.
You would write $23.00 as "Twenty-three and NO/100 dollars". Draw
a horizontal line through any leftover space, to prevent someone from adding
extra digits to the amount.
Be careful in selecting an ATM to use, because the bank
that owns the ATM can charge a fee (typically $1.00) in addition to any
fees your own bank may charge for ATM withdrawals. So it is best to use
your ATM card to withdraw money only from ATMs owned by your bank. Although
you can make withdrawals from almost any ATM, deposits should be made only
at your bank's ATMs.
The two national ATM networks are PLUS (1-800-843-7587)
and CIRRUS (1-800-4-CIRRUS or 1-800-424-7787). (There are a few smaller
regional networks, such as Trinet, but most ATMs are on one of the national
networks.) The networks to which your bank's ATMs belong is indicated on
the back of your debit or credit card. Although you can use an ATM on the
other network, your bank will probably charge you a larger fee for using
an ATM that isn't on the bank's home network.
Some banks offer a debit card that combines the features
of an ATM card with a credit card. You can use it like a regular Visa card,
except the charges are directly debited from your checking account. This
is in contrast to regular credit cards, which provide a grace period of
20 to 25 days for you to pay the bill before interest is charged. On the
other hand, it helps avoid the temptation to carry a balance on the card.
If you don't already have a credit card, it is worthwhile because international
students sometimes find it difficult to qualify for a credit card after
arriving in the US.
If you have an ATM card from a foreign bank, ask the bank
whether your Personal Identification Number (PIN) will work in the US. Some
banks will give you a different PIN for transactions abroad.
Bank lobby hours typically run from 9:00 a.m. to 4:00 p.m.,
Monday through Friday. Some banks open as early as 8:00 a.m. or as late
as 10:00 a.m. Some banks are open on Saturdays. Very few banks are open
on Sunday. Most banks are closed during national holidays.
Credit Cards
If you pay for purchases at retail stores using a check,
they will want to see some form of identification, such as a driver's license
or a major credit card (Visa, MasterCard, Discover, and American Express).
A passport can also serve as a photo identification, but it isn't wise to
advertise that you're an international visitor. Also, checks are only accepted
if they are drawn on an in-state bank, so you cannot use them if you travel
out of state.
Credit cards are such an ingrained part of the American
way of life that you will have trouble making certain purchases with anything
other than a credit card. If you want to place an order by phone, cash a
check, rent a car, or buy airline tickets, you need to have a credit card.
So it is better to use a credit card to pay for purchases.
But you must take care to pay off your balance in full at the end of the
month. Otherwise you will incur interest on the balance. This can substantially
increase the balance due.
Because getting a major credit card is very difficult for
international students, you should take every opportunity to establish a
good credit record. Be careful to not bounce any checks. If you open a department
store credit card, pay the bills promptly. Mailing your payment late several
times or missing a single payment can ruin your credit rating. After you've
established a good credit history, it will be easier to get a major credit
card.
The major credit cards in the US are Visa, MasterCard,
American Express, and Discover. Visa and MasterCard are offered by many
banks and financial institutions. American Express and Discover Card are
each offered by only one financial institution, but are accepted by many
businesses.
Traveler's Checks
Traveler's Checks are one of the safest ways to transport
money. If the traveler's checks are lost or stolen, you can easily get them
replaced. Do not countersign the checks until you are ready to use them.
If you bring traveler's checks with you to the US, you
should bring traveler's checks that are denominated in US funds. Most businesses
will accept US-denominated traveler's checks. Taxi drivers and bus drivers
will not accept traveler's checks, so you should bring some US currency
with you as well.
The three largest sources of traveler's checks are American
Express (1-800-221-7282), Citicorp (1-800-645-6556), and Thomas Cook (1-800-223-9920).
Exchange Rates
Some banks will exchange foreign currency for a fee. No
bank, however, will exchange foreign coinage. You can also exchange currency
at the airport or at a major hotel. You can also exchange currency through
Thomas Cook Foreign Exchange. Call 1-800-287-7362 for the nearest location.
Courtesy of NAFSA: Association of International Educators | 
