How To: open a bank account and handle banking transactions in the US

In case you are frequently going to the US on business or as a tourist, an American bank account will make any transactions a lot easier. We have done some research and found out what you should keep in mind when opening a bank account and what exactly it is you have to do.

DOES IT PAY OFF TO HAVE A BANK ACCOUNT?
An American bank account will make a lot of things a lot more easy and it will also be cheaper than handling all transactions from your account abroad. So, mostly even during a short stay, opening a bank account is definitely worth it. A checking account is similar to a German "Girokonto." You can draw money from your account or pay into your account with a check or a debit card. Usually, there will be no interest rate. Account fees vary from bank to bank, some don't even raise any at all. In addition, some banks allow the opening of Basic or Frill Accounts. The service for these accounts is often limited, for example you won't be able to write as many checks or draw money quite as often as elsewhere, but they have very low fees or none at all. Something that might interest students in the US is that many colleges/universities offer student accounts, which means all banking transactions can be handled on-campus.

WHAT DO I HAVE TO KEEP IN MIND?
You need ID in order to open a bank account. Americans usually only need their driver's license, you should have your passport with you. You will have to state a permanent address in the US and some banks require a Social Security Card. Usually, you may close an account by simply withdrawing the rest of your money and terminate the account. To be on the safe side, however, you had better ask about the conditions for closing the account before opening it. The fees can vary a lot in both type and amount, depending on the bank. At some banks you will have to pay for additional checks or all transactions with check or debit card. You should also ask whether you have to pay additional fees in case the savings in your account drop below a certain amount.

MONEY TRANSFER VIA CHECK?
In the US it is more common to pay bills with a check than by transfer. You mail the check to the invoicing party. So when you open an account you should pay special attention to how many checks you may use per month.

CREDIT OR DEBIT?
The credit card is a very common means of cashless payment and can be used almost anywhere by now. However, you will have to use the credit card from your home country, since American banks require a so-called credit history, which you as a foreigner won't have. Ask your local bank about the fees for using your card abroad. With your US debit card, you can pay in the store or draw money from an ATM (Automated Teller Machine). ATMs are not only to be found in banks, but also in many stores, kiosks and gas stations. Frequently the debit cards will have a credit card sign on them, e.g. VISA, but they cannot be used the same way as a credit card. Since the cards are not distinguishable at first sight, you will often be asked "credit or debit?" at the cash desk. If you pay "debit," you will have to enter your PIN number, for credit, your signature will be enough.