Spouses Network@UConn, Storrs, CT

Opening a US bank account

If you work at the university you will need to open a US bank account and even if you are just living in the US for more than a few months it is advisable to open a bank account in the US in order to manage your bills. The location of your bank branch is significant. Most people tend to prefer opening their accounts at banks in their neighborhoods or with offices close to campus. Before opening an account, it is a good idea to compare bank charges and fees at different banks.

Call the bank before you actually go there and ask them what kind of documents they will need you to bring when opening an account (passport, US address, Social Security number).

Important:
When you establish residency in the US you will need some money to rent a place (often a deposit which might be first AND last months’ rent, meaning that you will get the last month rent back only when you leave) - depending on the size of an apartment you might need up to $2000 upfront.

Also you have to know that the university actually pays you only after about 4-6 weeks after you started working, meaning that you will need a financial cushion to cover your living expenses for that period. In order to expedite the process make sure you sign all necessary forms as soon as possible, otherwise there might be even more delays until you see your much-needed first paycheck.

Transferring money to the US

Bank and credit cards
It seems that the easiest way to have immediate access to your money from your home country account is with a bank card. It seems advisable that you get an ATM card before you leave from your local bank, one with a 4-digit PIN (Personal Identification Number). Make sure it can be used in the US. The most common international network on ATMs in the US is Cirrus.

If your American bank is on-line with “Cirrus” or similar systems you can use your ATM card to withdraw up to $250 per day at all ATMs. It might be possible for you to increase the withdrawal amount with your home bank before you leave for the US. Check on transaction charges levied by your home bank. US banks will either take a nominal fee or will not charge at all. Try to get a back-up card from your bank in case your card becomes “de-magnetized”. This will save you having to request a new card via long distance.

Visa and Mastercard holders should check which services are available abroad (obtaining cash, rates for cash advances, etc.) prior to departure. American Express does not advance cash abroad to its credit card holders.

To obtain a cash advance in the US, simply go to your bank with your Visa or Mastercard and request an advance. You will receive your money instantly. You will be able to withdraw up to your credit limit or the cash limit of your card.

Note: Most credit card companies will begin to charge you interest on your credit card account from the time of a transaction rather than after the due date of your next credit card statement. This kind of transaction can be quite expensive and funds should be deposited in your credit card before you withdraw funds in the US. One should check with the credit card company as to the rate of interest charged on cash advances.

Another option for transferring your money is using a “debit card” that is issued by a bank or financial institution and linked to a money market/cash management account in your home country. When you withdraw money on your credit card account via an ATM machine in the US, the money is automatically transferred from your savings account to cover for the debit, and thus no interest is charged on the withdrawal. If you choose this option, set up the account and apply for the credit card as soon as possible, since it may take a while to establish a money market account, process your credit card application, and receive your card.

Wire transfer
Most banks will transfer funds electronically to an account in the US for a charge of approximately $30. The money will reach your account within 3-4 days. However, you will have to open an account in the US first and for that you will need a Social Security number and this requires someone to actually go to your home bank to arrange the wire transaction. Thus, unless someone close to you already has access to your bank account, you will have to arrange it before your departure. Make sure to ask your bank at home whether they offer this service and its cost. All US banks receive wire transfers.

Cash and/or Traveler’s Check
The advantage of bringing cash or traveler’s checks is that there is no waiting time for your money to clear. In addition, traveler’s checks and cash can be used for direct payment of rent, deposit, car, etc.

Carrying large amounts of cash is, however, risky, and you may have to pay an exchange service per traveler’s check. If you do decide to bring traveler’s checks, it is advisable to purchase them in large denominations.

Personal checks, money orders, and cashier’s checks
The exchange of foreign currency is generally difficult and expensive when you are already in the US (unless you use the banks right at the airport!). Not every bank will accept foreign currency and if they do the money sometimes needs to be sent to a larger branch and it might take days until you actually get your dollars plus the exchange rates are not very advantageous and the fees are high.
So, if you really want to bring cash, exchange your money into dollars at home already.Cashing any kind of overseas check at a local US bank will take at least 10 days to clear, and thus delay access to your funds. And the fees are often high.

source: modified from the Fulbright guide book

Sending money abroad

Unites States Postal Service
The United States Postal Service offers domestic, and international money orders as well as international wire transfers. Click here for more information.