Franklin Hall 306, 601 East Kirkwood Avenue. Bloomington, Indiana 47405
Phone: (812) 855-9086 | Fax: (812) 855-4418 | Email: intlserv@indiana.edu
November 11–20, 2009
International Education Week is an opportunity to celebrate the benefits of international education and exchange worldwide. This joint initiative of the US Department of State and the US Department of Education is part of our efforts to promote programs that prepare Americans for a global environment and attract future leaders from abroad to study, learn, and exchange experiences in the United States.
November 11; 5:00–8:00pm
⇒ Student & Scholar Advising ⇒ Living in the US ⇒ Money and Banking
Financial institutions in the United States offer many kinds of financial services, including checking and savings accounts, foreign currency conversion, bank drafts, money orders, credit cards, loans, inter-bank transfer, traveler’s checks, safe-deposit boxes for storing valuables, and investment services. The following credit unions and banks are located on or near the University.
All financial institutions offer similar services, with slight differences. Take the time to learn about differences in services and fees before choosing a bank or credit union. Be careful to select the account that best meets your financial needs. Opening an account is like entering into a contract. Be sure to read everything and ask questions if anything is not clear to you.
As you begin to settle in to life in Bloomington, Indiana, you will most likely want to open a bank account. Before you go to a bank, you should be familiar with the basic customer identification programs that financial institutions must follow in opening any new accounts.
In an effort to reduce money laundering, US financial institutions are required to verify the identity of every individual who opens a bank account. In compliance with federal regulations, all banks operating in the US have established Customer Identification Programs (CIP) that they are to follow for anyone who seeks to open an account. While the specifics of the CIP may vary from one bank to another, Department of Treasury regulations set the following minimal information that banks must obtain from you before allowing you to open an account:
The Treasury Department regulations clarify that for a non-US person, the identification number shall be one or more of the following:
It is important to remember that banks establish their own customer identification programs and may ask for additional documentation than is described above because they are ultimately responsible for establishing the identity of their customers.
Documents you should take with you to open your account:
Banks are required to report any interest earned on your account. For this reason, they will ask you for a taxpayer identification number such as the Social Security Number (SSN) issued to those who work, or the Individual Taxpayer Identification Number (ITIN) issued by the Internal Revenue Service to those individuals who are not eligible for a Social Security Number. Although the banks would greatly prefer that you already have one of these numbers, you can still open a bank account if you do not have one.
If you are eligible for a Social Security Number, we recommend that you apply for your Social Security Number as soon as possible. You are eligible for a Social Security Number if you are in a work-related non-immigrant status, such as H-1B, TN, R-1, J-1, or if you are an F-1 student approved for curricular practical training, optional practical training, or have already secured on-campus employment. If you have already applied for the SSN before you try to open a bank account, you should take a copy of the receipt notice with you. The receipt notice can serve as additional documentation that can help establish your identity. As soon as you receive your SSN, you should inform your bank.
If you are an F-1 student who is not employed, you are not eligible for a Social Security Number. You must apply for an ITIN through the IRS instead. ITIN application procedures require that you present evidence that you own an interest-bearing bank account. You cannot obtain an ITIN until you can establish that you have opened an account with a bank. Once you have submitted your ITIN application, it will take the IRS approximately 4–6 weeks to assign you a number. If your bank account does not pay any interest, then you must wait to file for your ITIN when you file your required tax forms in April.
When opening a bank account, you generally have two options: a savings account and a checking account.
Some type of checking account is a necessity. A checking account allows you a convenient way to make purchases without having to carry large sums of cash with you, and to pay bills by mail. You should never send cash through the mail—checks are safer.
Banks usually have several types of checking accounts available. Some may earn interest, others may not. Some accounts have a monthly service fee with no charge for each check written, while others have no monthly service fee but charge for each check written. Some charge no fees if a minimum balance is maintained.
When you open an account, you will be given temporary checks. In about 10 days you will receive checks imprinted with your name, address and account number. A certain number of checks are often free with new accounts, but there is usually a charge for additional checks.
If you write a check and there is not enough money in the account to cover it, the check will be returned to the financial institution. This is known as “bouncing a check.” Because a “bounced” check costs time and effort to both the financial institution and the business to whom the check was written, an accounting fee of $15–$25 will be charged by the financial institution in addition to any fees the business may charge. It’s against the law to knowingly write a check when there are insufficient funds in your account to cover the amount of the check. Keep accurate records of money spent.
A savings account is a place to save reserve funds or to save money for a special use. Financial institutions offer different kinds of savings accounts with varying interest/dividend rates depending on the terms of the accounts. Many people have a checking account for their daily expenses and a savings account for reserve funds. It is easy to transfer money from one account to the other as needed.
These machines provide most banking services (deposits, withdrawals, account balances) and are usually located outside of financial institutions or in shopping areas. There are several ATM systems nationwide: MAC, CIRRUS, and PLUS. ATMs are usually open 24 hours a day, seven days a week. Some systems may allow you to withdraw cash from your Bloomington account while traveling in another state or country. To take advantage of this convenient service, you need a personal ATM card. You can apply for one from your financial institution. When you receive the card, you will also receive a password or code-number called a PIN (Personal Identification Number). You must use both the PIN and the card to gain access to your account. For security purposes, you should memorize the PIN and not carry it with you. Your financial institution can tell you if there is a charge for using ATMs.
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