Banking & Finances

Estimated Expenses

Money & Banking

Estimated Expenses

International students planning to enroll on a student (F-1 or J-1) visa must complete the Undergraduate International Student Information Form and provide proof of financial support. Financial support may be obtained from more than one source, and documentation can be no more than six months old.

Before an I-20 or DS 2019 Form will be issued, the student must be admitted to the university and provide assurance that sufficient financial resources are available to cover the costs of the first year of study and that adequate funding will be available for subsequent years. The estimated costs for the 2008-09 academic year are listed below. Please note that tuition and fees generally increase about 4 percent each year.

Estimated Costs for the 2008-2009 Academic Year

Banking & Finances

U.S. Currency

U.S. Currency is in the form of coins and bills (notes) and the unit of exchange is the Dollar ($). The Dollar is divided into the following coins: i.e.: penny (1 cent), nickel (5 cents), dime (10 cents) and quarter (25 cents). Americans frequently refer to the coins not by their value but by their name, for example 25 cents is frequently called a quarter. Dollar bills come in denominations of $1, $5, $10, $20, $50 and $100.

Unlike currency in other countries, U.S. dollar bills (notes) are all the same color and also the same size. Hence, you have to be careful at first when you distinguish bills and have to pay careful attention to the value of the bill. This is also important for safety reasons, as it is possible for someone to misinterpret that you have a lot of money if they see a lot of green bills!

Opening a Bank Account

It is very important to open a bank account to deposit any money that you have brought from overseas, to establish a safe and easy mode of accessing and managing your finances and also to earn some interest. You will soon realize that, unlike in your home country, you do not need to carry currency around and most financial transactions, even the relatively small ones such as buying groceries, paying utility bills, etc., are done without the use of cash using a debit or credit card. It is also not a good idea to carry large amounts of cash in your person or to store cash in your dorm room or apartment.

There are many banks in the Fairfax area and there are two banks located inside GMU's Fairfax campus, namely the United Bank and the Apple Federal Credit Union. Most banks are open from 9 a.m. - 3 p.m. and some banks are open for a few hours on Saturday, too. In addition, many banks have branches and automated teller machines located in many places in the community and also throughout the country.

Other banks in the area:

Wachovia: www.wachovia.com (for locations)
BB & T: www.BBandT.com , 4117 Chain Bridge Rd, 8521 Braddock Rd, 7393-A Lee Highway
Chevy Chase: 1-800 987-BANK
Bank of America: 1-800 432-1000

Banks in the US are privately owned and therefore each bank offers different types of accounts and different interest rates. It would be prudent to inquire and compare the type of services, accounts, fees, etc. from several local banks before opening an account to determine which one will best suit you. You can talk to a bank officer in the bank's new accounts department to find out more about all the options available.

The two most common types of accounts that students use are:

Checking Account (also called a Current Account in many countries)
This is the easiest way to access your money safely. Some checking accounts also allow you to earn a small interest. Many banks have free checking accounts (no fees involved to open an account). Most banks also give you an automated teller card/check (debit) card that can be used at many retail establishments for paying for goods/services and also to obtain cash withdrawals from automated teller machines (ATM) 24 hours a day.

Automated teller cards can also be used at ATM's that do not belong to your bank but they charge a small fee for each withdrawal (check with your bank and the ATM machine for fee amounts). Generally there is a limit on the amount of money you can withdraw with your ATM card. ATM/check cards are useful, safe and convenient, and money is withdrawn directly from your checking account. However, unlike a credit card you need to keep track of your use of the card so you do not exceed the balance available in your account and also protect your card and password for security reasons. If your card is lost or stolen, contact your bank immediately.

Please note that banks charge a fine (generally $5-$30) for overdrafts (An overdraft is when you have written a check for more money than what is available in your account. Stores can also charge a fee for a bounced check. Therefore, it is always a good idea to keep an account of the balance available.

Savings Account:

If you have brought money for the entire school year, or have additional funds that you would not need to access immediately, you could open a savings account in addition to a checking account. A savings account generally offers higher interest than a checking account. It also offers you the flexibility of withdrawals, often a limited number per period, and transfers between accounts.

Other types of accounts and services

If you wish to accrue higher interest on money that you will not need to withdraw, you can open a Money Market account or a Certificate of Deposit (CD). These are like fixed deposit accounts and interest rates are determined by the term of the deposit. If you wish to withdraw money before the term expiration date, you pay a penalty of losing the interest.

Internet banking is a convenient, secure method of accessing information on your bank account and can be used to transfer money between accounts in the same bank. More information can be found on the internet banking services on the bank's website.

24-Hour banking is a convenient feature offered by many banks. You can access your money for withdrawals, transfer between accounts and make deposits at your bank's ATM machines 24 hours a day. This is done with the use of your bank card/ATM card and your security PIN number. Your PIN will be issued to you when you receive your bank card. You should change the PIN after you receive it for security reasons.
Wire transfer of money from an overseas bank is a service offered by many banks for a fee.

Checks

Personal checks can be written for most goods and services and is a common method of paying bills. Please keep in mind that not all businesses accept checks. Generally when you write a check, the vendor may request some form of picture ID, such as a driver's license or passport. Blank checks should be kept safely and you should never sign blank checks. You need to order checks when you open an account.

Two-party checks are checks written by someone else in your name. To deposit these checks they have to be endorsed (signed) by you on the back on the check. Only sign the check when you are ready to deposit it, as it can be deposited by anyone once it is signed.

Safety Deposit Boxes

Most banks have safety deposit boxes that you can rent for a monthly/yearly fee. Only you have access to your safety deposit box and it is frequently a good place to store valuable items such as jewelry, passports and important documents.

Credit Cards

In the United States, the use of credit cards to purchase goods and services is a common phenomenon. Many banks, financial institutions, department stores, gas companies, etc. offer credit cards to the general public. As a new international student in the U.S., you may find if difficult to obtain a credit card at first, as credit card companies normally evaluate an applicant's credit history in the U.S. to determine if they will approve a credit card. However, frequently companies offer special students credit cards (with some restrictions). Once you have established some financial history in the U.S., it is not difficult to apply and obtain a credit card.

Each credit card comes with a maximum credit balance and you can make purchases using your card up to that balance. At the end of the month you will be sent a statement outlining all of your purchases and total balance. Good financial practice is to pay the balance in full at the end of each month. You do have a choice to only pay the minimum balance due on the account (which is indicated on your monthly statement) and then pay interest on the unpaid balance - this is the way credit card companies make money on your accounts. It is, however, not a financially sound decision to accrue debt in this manner as you pay very high interest on the balance. Money management is an important part of your success in the United States and it is best to have realistic and good spending habits right from the start.

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