EducationUSA Ukraine

PRE-DEPARTURE ORIENTATION 2013

BANKING IN THE US
In the U.S., there are credit unions, saving and loans associations, and full-service banks. You can open an account in any of them. You may
ant to open a checking account, savings account, or both.
CHECKING ACCOUNT
If you open a checking account, you ill be alloed to deposit money into it and ithdra money from it, at the bank or at a banking
machine. You ill also be able to rite checks for specific amounts of money that ill then be taken out of your account. !he bank ill give
you a checkbook containing many checks. !o make a purchase, you fill out the check for the e"act amount of the sale and indicate hom you
are paying. #hecks are used in the U.S. the same ay cash is used. $efore you begin shopping, make sure that personal checks are accepted
there. Alays have % forms of identification ith you hen you rite a check. Ask at the bank ho to !"## o$t %he%ks %o&&e%t#'.
&hen opening a checking account, some points to consider are'
1( )onth#' Se&*"%e Cha&+e -- Is there a basic monthly fee or a fee for each check ritten(
2( )"n",$, Ba#an%e -- )ften, if you have the minimum amount in your account, you do not need to pay a service
charge. Is the balance checked daily *you need to have the minimum amount in your account at the end of each day+, or is the average
balanced checked at the and of the month( ,ake sure you understand the bank-s policy for calculating the minimum balance.
3( -Inte&est Che%k"n+. -- *the money in your checking account is earning interest+ #onsider the above % points and the minimum balance to
earn interest. If you do not have this minimum amount in your account, you ill not gain the interest. Understand ho the minimum balance
is calculated.
.. /$udget #hecking0 -- 1or people ho do not have a lot of money in the account at any one time. !he monthly service charge is usually less
and often there is no minimum balance. !here might be a fee for each check ritten over a specified number. 1or e"ample, the first 23 checks
ritten in a month are free, end any after 23 are 453 each.
SA/INGS ACCOUNT
If you open a savings account, you ill be alloed to deposit money into it and ithdra money from it, at the bank or at a banking machine.
!his money usually earns interest.
Some points to consider hen opening a savings account are'
1( )onth#' Se&*"%e Cha&+e -- 6o much is it(
2( )"n",$, Ba#an%e -- &hat is the minimum needed in your account to avoid monthly service charges and to earn interest( ,ake sure you
understand ho the minimum balance is calculated.
7ealistically assess your financial situation and pick the bank ith the most economical plan for you.
TRANSACTIONS
&hen you deposit or ithdra money, you are making a transaction. &hen you open an account, you ill receive a checkbook *checking+
and or passbook *savings+ ith your account numbers listed on them. You need to kno these numbers in order to make a transaction. &hen
you deposit a check into an account, you must endorse *sign+ the back of it. Ask at the bank ho to en0o&se a %he%k %o&&e%t#'. !his is very
important if you ant to receive your money.
7emember - hen making a deposit, the money is not immediately available for use. #arefully read the bank literature to understand the
length of time to complete transactions.
!he bank ill periodically send you a bank statement. !his is a list of all transactions for that period. Alays check the statement against your
on records and contact the bank if you find any discrepancies. $e aare of ho much money is in your checking account at all times so that
you do not bounce a check, or rite a check for money that you do not have in your account. If your check bounces, you ill be fined by the
bank and probably by the organi8ation to hom you paid the check.
If you are making a transaction at the bank, you ant to bring % forms of identification ith you. If you are making a ithdraal, the teller
may ask, /ho ould you like it(/ !his means in hat denominations do you ant to receive your money.
You can also conduct transactions at an A!, *Automated !eller ,achine+, if the bank has provided you ith a bank card. Sometimes there is
a fee for this bank card. $e sure to find out about transactions fees at A!,-s. Sometimes if the A!, is from a different bank, you have to pay
an e"tra fee. Your card ill have a pin, a numeric code to access the account. 9o not share this pin ith anyone else and do not store it ith
your A!, card.
BANKING BASICS
)ne of the first things you ill ant to do upon arrival in your ne city is to open a bank account. !he 1oreign Students )ffice ill be able to
assist ith this: the topic ill most likely be discussed in your orientation program hen you arrive.
T1PES O2 ACCOUNTS
#hecking Account. You ill probably ant to open a checking account to pay bills. #ash should never be sent through the mail. Apart from
paying bills, use of checks in the US varies 1rom state to state. In most states, the ill be accepted for purchases in stores, as long as
2+ you live in the state, and %+ you can sho appropriate photo identification *passport, driver-s license, perhaps a
student 2. 9.+
;uestions to ask hen opening a checking account'
2+ Is there a minimum balance( %+ 9o I pay for each check I rite( <+ &hat is the overdraft charge(
Savings Account: A savings account is the place to keep money that you do not need immediately. You ill earn interest on the money in a
savings account, but you cannot rite checks from it. You may ish to open a checking and saving account at the same bank, so that you can
easily transfer funds beteen the to.
Automatic Teller Machines: ,ost accounts include bank cards that can be used to ithdra money from automatic teller machines *A!,-s+
across the country. Apply for this card at the same time you apply for your account. A!, machines are located not only at banks, but also in
shopping malls, gas stations, and most likely on your campus. ,ost banks charge a fee if you ithdra cash from an A!, oned by another
bank: some banks have begun charging even if the A!, belongs to the bank. $e sure to ask=
BRINGING )ONE1
!here are several options for bringing money to the U.S. !hese include'
Traveler's checks' Easy to carry, idely accepted, and replaceable if lost or stolen, traveler-s checks are a safe ay to physically bring money
ith you.
Wire transfer: )nce you have opened a bank account, it is possible to have money ired from a bank at home to your bank in the U.S. !he
transfer generally take 5 orking days and re>uires a fee. Some universities also allo you to use ire transfer to one of their accounts if you
need to make tuition payments in advance of your arrival.
$ank 9raft?#ashier-s #heck' !his is a check guaranteed by a bank end should be dran in US dollars. $ank draft can <3 days or more to
/clear,/ meaning you cannot access your money for that amount of time. 9o not bring a bank draft for money you need immediately=
)ONE1 )ATTERS3BUDGETING
$efore you go, you ant to have a good idea of ho much studying in the U.S. ill cost. )n your 2-%3 or IA@-AA, the school you are going to
ill list e"pense estimates. !hese estimates are usually >uite accurate. Use them to prepare a budget for yourself, including the items listed
belo. It is useful to figure it by month, since you may be in the US during academic vacation periods.
ITE) A,o$nt Nee0e0 !o& One Se,este& A,o$nt Nee0e0 4e& )onth
!uition B 1ees
6ousing
1ood *or /$oard/+
$ooks B Supplies
6ealth Insurance
!ransportation
#lothing
Entertainment?!ravel
!a"es
5HEN BUDGETING6 REA7ISTIC8
!he school you are going to go ill tell you e"actly ho much, if any, financial aid you ill receive.
!his amount ill not change for at least the first year after you arrive.
Employment opportunities are limited, and, if you are on a C-l visa, any employment must be approved by
your sponsor. You should not plan on orking to meet your e"penses.
1inally, any scholarship or felloship money you receive ill be ta"ed, as ill any money you earn
through orking. $e sure to deduct this amount from your total available.