world scholar

As a student, there is also a lot of things on your mind, the least of which is money. If you’re among one of the lucky few, perhaps your parents handle your money — but most of us have to do that for ourselves.

Unfortunately, money and the way you handle it is a very important and pertinent issue that you must be able to get your head around. Bringing lots of cash around is never a good idea, no matter where or when you travel. Unlike funds in a bank account, lost or stolen cash is, well, gone. It cannot be replaced.

That’s why it’s very important that you open a checking or savings account here in the United States.

A checking account will give you the most leeway on spending (providing there’s cash in the account), while most savings accounts only allow a limited number of account withdrawals.

Normally checking accounts don’t acquire interest unlike a savings account. It is, however, important to inquire to each individual bank about its practices. And it’s a good idea to start with a bank that’s located somewhere near your campus or dormitory.

Contrary to what you might think, a Social Security Number (SSN) is not required to open a regular bank account. Although it wouldn’t hurt to have one, and it does make it easier and less painful of a process. (For information on how to or to obtain an SSN, contact your college’s office for international students).

When obtaining any bank account, make sure the bank is insured by the Federal Deposit Insurance Corporation. The FDIC protects all of your deposits in the event that something were to happen to your money. You can check out whether a bank is FDIC-insured by visiting www2.fdic.gov/idasp. Additionally, insured banks have an FDIC label affixed to a visible wall near its tellers.

If you don’t have a SSN, you might have a Taxpayer Identification Number, which you can obtain from the Internal Revenue Service (irs.gov). Make sure to fill out a W-8 form, titled “Certificate of Foreign Status.” This form is also available at your local bank — be sure to explain to the bank representative that you’re a non-immigrant on an F-1 student visa and the representative will have you fill out the appropriate paperwork.

Additionally, you may be required to present your Visa to obtain a checking account, so it is probably a good idea to have it on hand in case when you go to open a bank account.

Here’s something else to consider: like buying a car, it is best to shop around for a bank before committing to one. But since you might not have a car, your only option may be the bank on campus or the one nearest to the dorms.

Some other things to consider when obtaining a checking account include:

• Debit/Check Cards

Many banks allow its customers the use of a debit or check card, which, when used at the local restaurant, clothing store, or ATM machine, funds are immediately deducted from your account. Some banks allow patrons a “money back” option at participating merchants, which saves a trip to the bank or ATM.

• Online Bill Paying

This is still a fairly new option, but a very convenient one. Since some banks only allow a certain number of written checks a month, this online service pays your bills (like telephone or cable) monthly.

• Check Writing

Believe it or not, some banks charge customers for boxes of checks. Depending on the design you choose, these can get pretty pricey. Some banks don’t return your canceled checks, so carbon copy checks, where the actual canceled check is kept on file with the bank, might be a good choice for you.

• Transaction Fees

Some banks have hidden fees or require a minimal account balance. If you go under this balance, you may be charged a fee. Also, if you do not have overdraft protection, the bank may charge you an overdraft fee for each transaction you complete where sufficient funds were not in the account to cover the charge. These can be quite hefty, so be careful but also be watchful of how much money you are spending each month.