By Prateek Swain
The allure of studying abroad, particularly in the United States, has led many international students to seek the Golden Visa route — a pathway that combines education and immigration opportunities. Beyond the academic and career benefits, understanding the financial implications of this journey is paramount.
The Golden Visa Advantage
According to the US Department of State, more than 1.1 million foreign students were enrolled in US educational institutions during the 2020/2021 academic year, demonstrating the popularity of this pathway.
Main Benefits of a Golden Visa
The ability to live, work, study, and travel in the host country and its regions (such as the EU or Schengen area).
The possibility of obtaining citizenship after a certain period of residence or meeting other criteria.
The access to better education, health care, and social services in the host country.
The diversification of assets and income sources across different markets and currencies.
The protection from political and economic instability in the home country.
Costs and Opportunities
Studying abroad in the US entails significant financial outlays. According to the Institute of International Education, the average cost of tuition and fees for international students in the US for the 2021/2022 academic year was approximately $30,000. Factoring in living expenses, the total financial commitment can reach substantial figures, underscoring the importance of prudent financial planning.
Digital Banking
Digital banks are rapidly reshaping the banking landscape, offering innovative solutions tailored to the needs of international students. These platforms offer competitive exchange rates, lower fees, and user-friendly interfaces, aligning seamlessly with the requirements of mobile-savvy students.
Why open a US bank account?
By opening a US bank account, individuals can avoid these costs and risks and enjoy the following advantages:
They can transfer money from their home country bank account to their US bank account at a lower fee and a better exchange rate using online platforms or services such as TransferWise, Remitly, Swadesh or Xoom.
They can use their US debit card or cheque book to pay for expenses without incurring any foreign transaction fees or currency conversion fees.
They can utilise direct deposit to receive their salary or stipend if they work part-time or engage in an internship in the US.
They can establish their credit history and score by using a US credit card responsibly and making timely payments. This can help them qualify for better interest rates and terms for loans, mortgages.
They can access various financial products and services offered by US banks, such as savings accounts, certificates of deposit, money market accounts, individual retirement accounts, and more.
How to open a US bank account?
Opening a US bank account as an international student is not very difficult if individuals have the right documents and information. Here are the steps they need to follow:
They should choose a bank that suits their needs and preferences. Different banks can be compared based on their fees, features, locations, customer service, and more. Some of the major banks in the US include Bank of America, Chase, Wells Fargo, Citibank, HSBC, and others.
Visiting a branch of the chosen bank with the necessary documents and filling out an application form is the next step. Depending on the bank, individuals may also have the option to apply online or over the phone.
Once the application is approved, they will receive their account number, debit card, chequebook, and online banking credentials. They can then begin using their account and enjoy its benefits.
Conclusion
For international students embarking on a Golden Visa journey to study abroad in the US, strategic financial planning is paramount. Opening a USA bank account, especially through a digital banking platform, presents a tangible and multifaceted advantage. The financial savings, currency conversion benefits, and comprehensive financial management tools offered by digital banks position students for fiscal success as they pursue educational excellence and broader horizons in their academic and professional endeavours.
(Author is CEO, Swadesh Inc)
