Banking accounts
It is very likely that you will wish to have an American bank account while you are a student in the United States. Having an American checking account will allow you write checks to local businesses for goods and services. Some banks also offer other features to their customers, such as debit cards, credit cards, and loan services.
Your first step is to contact several banks in your area and compare their requirements for checking accounts, and the services they offer. Some banks charge a fee for services, others do not. Also ask the bank what forms of identification you will need to open your account.
A checking account is an account at an American bank that allows you to write checks to cover expenses to businesses. Most businesses will accept a personal check as long as you have identification (passport, student ID card, driver’s license, etc.)
A “debit card” is a card issued by the bank that allows you to withdraw or deposit money to your bank account using an automatic teller machine (ATM) and to make purchases at stores that accept the card. The card works just as a check, but in most cases, the money comes out of your account immediately.
A “credit card” is a card issued by a bank that allows you to make purchases at most retailers. However, using a credit card creates a monthly bill that you will have to repay with interest. Some college students make the mistake of creating large credit card bills that they have difficulty repaying. Therefore, you should be very careful not to use the credit card in excess of your ability to repay. Some countries allow you to get a credit card while you are still overseas.
“Overdrawing” a bank account means that you took money from the checking account that was more than the amount of money you had in the account. It is also called “bouncing a check.” If you overdraw your account in payment to a business, you may also pay a fine to the business. In addition, you will pay additional fines to the bank and you will have to repay the amount you overdrew.
For instance, if you write a check to a restaurant for $40, and there is not enough money in your bank to pay for the check, you will have to repay the bank for the original $40, plus pay any fees the bank asks, plus pay any fees the restaurant requires. This could be very expensive.
If you overdraw your account too many times, or if you do not repay the amount of money you owe, you may be arrested and jailed. Therefore, it is very important that you keep up with your banking accounts and know how much money you have to spend.