How to open a bank account as an international student

As an international student, managing your finances abroad can seem stressful, but it does not need to be. You may be familiar with your local banking system or have held your bank account for years, but international students usually find it far easier to open a student bank account in their study destination to manage their money while they live overseas.

Why should you have a student bank account?

The top reasons are:

• Your Indian bank account or credit card company will likely charge you for each overseas transaction you make
• A local bank account provides a safe place to store your money while keeping it easily accessible.
• You’ll receive a debit card, enabling you to access your money at ATMs and make cashless payments.
• Many universities prefer to pay scholarships or other financial aid into a local bank account.
• If you plan to work part-time or expect to earn a stipend as a research student, employers typically prefer to pay salaries into local bank accounts.
• If you rent private accommodation, landlords often prefer to receive rental payments from a local bank account.
• Many utility companies and telecommunication service providers will only accept payments from a local bank account.

What documents are needed to open a student bank account?

To open a bank account abroad, you must prove your identity, and that you are living and studying in the country. To evidence this, you will usually need to supply the following documents:

• A copy of your passport.
• A copy of your university ID card and/or a copy of your confirmation of enrolment issued by the university.
• A copy of your student visa, or other immigration permission.
• Proof of address in the country you are opening your bank account, such as a letter from your university confirming your address.

Some banks may also request:

• Proof of your Indian (home) address
• A secondary form of identification, such as a driver’s licence
• Two or three passport-sized photographs
• Copies of previous bank statements
• A specific sum of money to deposit in the account

Copies of official documents may need to be notarised or certified as a true copy before the bank will accept them. Different banks have different requirements, so it’s advisable to carefully check you have all your documentation ready before you begin the application process.

What are the steps needed to open a student bank account abroad?

1. Start early

Do your research on local banking legislation before you leave India. In some countries, you can't apply for a bank account until you have commenced your studies, but others may allow you to open an account before you move. In Australia, for example, you can apply for a student bank account up to three months before you arrive.

2. Compare banks and account types

Before you apply for a student bank account, it is advisable to compare what different banks offer. Consider factors like interest rates or fees associated with the account, whether the bank has a branch in your local area, and whether you might need access to additional services such as a planned overdraft.

Depending on your study destination, you may be limited in the types of bank account you can open. In the UK, for example, most international students are only permitted to open a basic or current account, or similar accounts specifically designed for overseas students. These accounts include all the basic standard features, including a debit card and online and telephone banking facilities.

International students may also be permitted to apply for a credit card. This is a serious financial decision you should only make if you know you can make payments promptly, as failure to do so will hurt your credit rating and can have long-term financial implications.

Once you have chosen a bank and account, read all the small print before applying so you understand all the services and restrictions associated with the account.

3. Complete the application

Once you have chosen a bank and an account type, it’s time to start the application process. Be sure to have all the documentation you need to hand when you apply.

The actual process of applying for a bank account may vary between specific banks and countries. However, the most common methods are:

• Online application, where copies of all accompanying documentation are submitted digitally or in the post
• Online application followed by an in-branch appointment, where your identity and supporting documents are checked.
• In-person application that requires you to book an appointment at the local branch of your bank in advance.

How much time does it take to activate a student bank account?

Submitting your application for a student bank account does not normally take a long time and can often be completed online. It’s best to allow an hour or two for this part of the process, but it is often completed more quickly.

The verification processes involved at the bank’s end as they process your application can be lengthy. Your application may be approved in as little as 24 hours, but it is not uncommon for international students to wait several weeks for their bank account to be fully activated.

As such, it is recommended that you travel with sufficient funds to cover all your living expenses for at least the first four to six weeks of term.

Can universities offer support to international students opening bank accounts?

The International Office at your university will usually be able to provide you with support and guidance through the administrative process of opening a bank account. They may be able to connect you with banks that have a presence on campus, assist with any language barriers, or explain local banking regulations.

However, university staff will not usually be qualified to offer detailed financial advice, for which you would need to approach an external finance professional.

IDP Student Essentials service

Don’t forget, you can use the IDP Student Essentials service to connect with an expert and receive guidance and support in all matters relating to opening a student bank account in the UK, USA, Canada, Australia or New Zealand.