Bank accounts for international students
As an international student moving to a new country, arranging a new bank account should be high up on your to-do list. Making your funding easy to manage and readily available is essential as part of a positive experience studying abroad.
Why get a bank account in your new country as an international student
First and foremost, if you are moving abroad for your studies, there is a high possibility that you will be dealing with a different currency in your new country.
Attempting to pay for bills, withdraw cash, buy groceries and depositing funds with your existing bank account is likely to be a headache at best, with the likelihood of transaction fees at every turn.
The benefits of opening a bank account in your new country include:
- You will be given to a bank card (also known as a debit card, a check card, a payment card, and in Germany as an EC card) which can be used to pay for goods and services instead of using cash
- You can set up mobile and online banking with your domestic account and use your phone as a payment method
- You won’t be charged transaction/currency conversion fees for every payment
- You can use your bank account as proof of your address, should you need that for applying for jobs
- If you want to work part-time during your studies, It is much easier for employers to pay your wages into a domestic bank account
- In many countries, such as the UK, Germany and Australia, your student bank account will be free of charge
- Opening an account in your new country will allow you to start building up a credit rating in this country, which is useful if you want to stay in this country for a long period of time
Aside from these benefits, in some countries having a bank account local to that country is an essential requirement. For example, if you were to study in France, the following types of payments are only accepted from a French bank account:
- Your rental payments to private landlord
- French mobile phone contract payments
- Public transport payment cards
- Utility bills & insurance bills
What type of bank account do I need?
If you decide that opening a bank account in your new country is right for you, what kind of bank account should you open?
Generally, a simple current account is the best option for you as an international student.
Depending on your country, these types of accounts are usually free of charge and provide you with all the services that you will need, such as a bank card and online banking apps.
Current account
Current accounts may be known under different names around the world and are perfect for everyday use such as the paying of bills and buying goods.
You will come across several naming conventions depending on your country, including:
| Australia | Transaction account |
| Germany | Current account |
| USA | Checking account |
| Canada | Chequing account |
| UK | Current account |
A student account
In some countries, such as in Australia and the UK, it is possible to open a student-specific bank account. These are essentially the same as current accounts, but may come with features that make them more helpful for students.
These could include low or no monthly fees, low fees for sending money abroad, cashback on certain purchases, and arranged overdrafts, which are helpful if you need emergency funds.
If the option is available, it is usually worthwhile to pick a student specific bank account.
Savings account
A dedicated account for your savings is usually not required in your new country as an international student, but they can be useful if you want to put money aside for any emergency bills or large payments.
Do bear in mind that some savings accounts place restrictions on how much you can withdraw from your savings account over certain time periods with regards to interest you are hoping to accumulate on your savings.
Bank accounts for postgraduate students
For International students studying at postgraduate level, for example a masters or an MBA, having a dedicated bank account whilst studying abroad is as important as it is for undergraduate students.
The good news is, many banks allow postgraduate students to open one of their student bank accounts in just the same way as undergraduate students.
For example, in the UK, you may apply for the HSBC Student Bank Account as a masters student if you are beginning a postgraduate degree of at least 1 year in duration or if you are starting a second bachelor’s degree, as long as you have completed an undergraduate course within the last 3 years.
If you have already studied your undergraduate degree in another country, and you already have a student bank account in that country, it is possible that your bank will let you continue to use your bank account with the same perks, such as low or no monthly fees, if you extend your stay to include your postgraduate studies.
If you find that you have no option but to move to a new bank account because you have moved from undergraduate to postgraduate studies, many banks offer graduate bank accounts, which offer comparable terms to student accounts.
For example, in the UK, the Barclays Graduate Bank Account offers its customers an account with no monthly fees and an interest free overdraft of up to £1,500.
Banking fees for students
In many countries, bank accounts are free to open and use, but this is not a universal rule. You will also find that, even for bank accounts that are free to use, it is still possible to incur charges for certain transactions.
In some countries, for example the USA, it is more commonplace to pay a monthly fee for your bank account, but this fee is typically waived for a student account.
To give you an idea of what to expect, we look at several popular study abroad destinations and the bank fees you can expect in that country.
| Country | Monthly fees | Other fees |
| Australia | Usually free for students | Minor fees of around 1% for withdrawing cash from ATM of another bank |
| Germany | Usually free for students | Minor fees of around 1% for withdrawing cash from ATM of another bank |
| USA | Usually free for student checking accounts for a limited time period (0-6 years) | Minor fees of around 1% for withdrawing cash from ATM of another bank |
| Canada | Usually free for students | Minor fees of around 1% for withdrawing cash from ATM of another bankFees for using arranged overdraft |
| UK | Usually free for students | Typically £0 – £25 fees for sending money abroadFees for using arranged overdraft |
Choosing the right bank account for you
If you are traveling to a new country, knowing where to look for a bank account is not always straightforward.
In most cases, we would recommend starting your search by looking at the student bank account options at the major banks of the country. From this you can establish the norms and most common bank account features, before comparing options from smaller banks.
Here are some links to the major banks in popular study abroad destinations to get you started:
| Country | Major banks to consider for your bank account |
| Australia | ANZ Bank CommBank National Australia Bank (NAB) Westpac |
| Germany | Deutsche Bank Commerzbank |
| USA | Bank of America Wells Fargo Chase CitiGroup |
| Canada | Royal Bank of Canada (RBC) Scotiabank Bank of Montreal (BMO) Toronto-Dominion Bank (TD) |
| UK | HSBC Lloyds Natwest Barclays |
The websites of banks are often the best place to get detailed information about the process involved in opening a bank account, and what documents you will need to provide to support your application.
To choose the correct bank account for you, we recommend making a list of accounts that catch your eye, and comparing the features.
Things to look for include:
- Are there any account opening fees chargeable to you for opening the account
- Is there a monthly fee for using the bank account
- Is there access to an easy to use online banking or mobile app
- Are there any perks available for choosing the account
- Are there any limits on debit transactions
- Are there ATM withdrawal fees
Bank account perks
Though not available in every country, some banks offer perks beyond low fees, and actually offer you cash (or equivalent) incentives to pick a bank account with them.
Canadian banks are particularly good examples of this at present. Examples of student bank account perks include:
| Country | Bank account | Perk |
| Canada | Scotiabank Student Banking Advantage® Plan | $100 cash $75 towards groceries |
| Royal Bank of Canada (RBC) | $100 cash | |
| Bank of Montreal (BMO) | Up to 12 months of Domino’s pizza (worth $190) | |
| UK | Barclays Student Additions Account | Free three-year subscription to Perlego’s online library of books, academic texts and toolsInterest free overdraft of up to £1,500 |
| Lloyds Classic Account | Earn up to 15% cashback on certain purchases when using your Visa Debit Card |
Whilst we certainly do not recommend picking your bank account solely based on what perk you can find, they can nevertheless be a nice little bonus if the account is right for you.
How to apply for your student bank account
Just like applying to university, the process of applying for a bank account can vary between countries and between banks.
So you know what to expect, we shall talk you through the common steps:
Check if you are eligible to apply
The first step of your application for a bank account is simply checking that you are eligible to apply. Banks publish this information on their website, so it is easy to find out.
Generally, requirements will include (but will not necessarily be all of these):
- You must be staying in the country for at least six months
- You have a valid student visa
- You have a fixed address in the country
- You have a phone number in the country
- You must be enrolled in a university course
Gather the required documents
Once you have checked that you are eligible to apply for a bank account, the next step is making sure you have the required documents to hand to support your application.
These documents will generally include:
- Proof of your address in the country (student ID, utility bill with your name and address, rental agreement etc.)
- Proof of your ID. Often two forms of identification are required (Your passport, drivers license, residence card)
- Proof of your university/college course
Make your application
Applications for bank accounts can be made online or in-person, by arranging an appointment at your local bank branch.
In most cases, you have to be residing in the country before making your application.
To apply online, gather your documents and follow the instructions given to you. You will have to enter your personal details, and may be asked to provide digital versions of your certificates, or visit a local branch to supply them in person.
Conclusion
As an international student, it really is important to consider opening a bank account in your new country. It will make your time abroad much easier to manage and save you money.
It may also simply be a requirement to have a domestic bank account, to allow you to pay for things like rental and health insurance.
Choosing the right account should be made carefully, and it pays to compare the options available to you.