When you study abroad, you have to manage a lot of things such as your studies, time, the perfect balance between your lectures and other activities and the most important aspect – finances. A student bank account plays a vital role in managing your finances. You have to pay for various expenses such as accommodation expenses, travel costs, food and groceries. It is necessary to open a student bank account to make the payments seamlessly.

So, what exactly is the bank account for study abroad students?

A student bank account is a local bank account that is specifically designed to cater to the needs of university students. So, you can open an account with any local bank when you study abroad. Most bank accounts will come with debit cards too. However, before opening a bank account, please conduct thorough research.

  • Pro tip: Your research to find the right student account will be similar to the research to find the right education loan for studying abroad. So, get to know about the customer service, fees, interest rates and customer ratings. 

What are the benefits you can enjoy with a student bank account? 

1. Manage your finances

You have to consider some recurring expenses such as accommodation costs, travel expenses and living expenses. In such cases, a local bank account will be very helpful. Also, if you are planning to work part-time, please remember that your employer will transfer the amount to your bank account. 

Working part-time is a personal choice. Many students prefer working abroad while studying because it helps to earn some extra bucks. When you opt for an education loan for studying abroad purposes, it will cover major educational expenses. So, you don’t have to worry about the educational costs, but if you want to work while you learn, you have plenty of choices.  

2. Save the fees

If you transact using your bank account based in your home country, you will end up spending a big chunk of money on conversion fees. So, to avoid unnecessary fees, students can open a bank account and save money. 

3. University requirement

In most cases, when you opt for an abroad education loan, the living expenses are transferred to your university after the conversion of the currency. So, once you arrive at your study abroad destination, these universities will deposit these funds into your local bank account so that you can pay for your day-to-day expenses. 

4. Manage your abroad education loan

Most education loans for studying abroad come with a moratorium period where students are exempt from paying during the course and/or till they find employment. However, most students prefer to make a small contribution in the form of simple interest and partial interest because the education loan rate of interest begins to accrue soon after taking a student loan. 

We at Avanse Financial Services always advise our student fraternity to pay a small amount during the moratorium period as it also instils financially prudent habits.

Some tips for opening a bank account when you study abroad 

Choose the right bank: 

Most international universities will have tie-ups with a local bank to ease the journey of students studying abroad. However, it is necessary to shortlist a couple of banks in order to find the one that gives you more benefits. The banks closer to your accommodation and university will be an added advantage.   

Keep these documents ready 

  • Your valid passport and student visa
  • University confirmation letter
  • Your ID proof
  • Address proof with your local address 

Read the fine print 

Put your detective glasses on when you sit down to scrutinise fees, interest rates, freebies and other aspects. It is best to know your expectation from your bank account rather than selecting the bank account that entices you with multiple perks but comes with hidden costs. 

So, this information will come in handy when you open a bank account in your host country. However, if a lack of funds stops you from studying abroad, you can opt for a student loan in India. For more information on aspects such as education loan rate of interest, documents required and eligibility criteria, please feel free to connect with us.

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