Best Student Accounts in Digital Banks
If you are an international student looking for a digital bank account, you have a lot of factors to consider. In addition to finding an account with low fees and good customer service, you should also ensure you can use it in your home country.
With so many options on the market, it can be challenging to know where to start. However, by researching and thinking about your needs, you can find the perfect digital bank account for your needs.
This post will discuss some of the best digital bank accounts for international students in 2023. By the end of this post, readers will know what factors to consider when choosing a digital bank account and which accounts offer the best features for their needs.
Start Working with Digital Banks Now with the Wise Bank!What is a Digital Bank Account?
A digital bank account is a type of bank account that allows customers to access their funds through an online platform. Digital bank accounts are similar to traditional bank accounts in that they allow customers to deposit and withdraw money, but they differ in that they do not have physical branches.
Instead, digital banks operate primarily through online and mobile platforms. This allows them to offer customers lower fees and higher interest rates than traditional banks.
A digital bank account offers a savings account with a great interest rate. The account is easy to use, and you can access it from anywhere in the world with an internet connection.
You can also link your savings account to your checking account to easily transfer money between the two accounts.Once you have created an account, you can deposit money into your savings account and earn interest on your balance.
The Benefits of a Digital Bank Account for International Students
There are many benefits to having a digital bank account for international students. Here are some of the most important pros:
Built-in Budgeting Features
Digital bank accounts come with built-in budgeting features that can help you manage your money while studying abroad. These budgeting tools can help you track your spending, set spending limits, and see where your money is going. Digital banks also offer features such as the ability to round up your purchases to the nearest dollar and save the difference.
Digital Bank Accounts are FDIC Insured
Digital bank accounts are FDIC insured for up to $250,000 per individual customer account, just like traditional bank accounts. This means that your money is safe in the event of a bank failure. You can use the FDIC’s BankFind tool to find out whether a bank is insured.
High-Interest Rates
Digital bank accounts typically offer higher interest rates than traditional ones. This means that you can earn more money on your balance by keeping your money in a digital account.
For example, the average interest rate on a savings account in the United States is 0.06%. However, some digital banks offer interest rates as high as over 1%.
24/7 Customer Service
Digital banks offer 24/7 customer service, so you can get help when you need it. This is in contrast to traditional banks, which only provide customer service during business hours. If you have a question or problem with your account, you can contact customer service and get help right away.
No Maintenance Fees
Most digital banks do not charge monthly maintenance fees, so you can keep your entire balance without worrying about paying a fee. This contrasts with traditional banks, which charge a monthly maintenance fee of $7 on average. You could save $84 per year by switching to a digital bank.
Cons for International Students Compared to Local Banks
There are also potential disadvantages to using a digital bank account for international students. Here are some of the most important drawbacks to consider:
Potential Foreign Transaction Fees
Some digital banks charge foreign transaction fees when you use your account to make purchases in a foreign currency. For example, if you live in the United States and use your digital bank account to make a purchase in Europe, you may be charged a foreign transaction fee. This means you would lose a percentage of the purchase price to fees.
Potential ATM Fees
Some digital banks charge ATM fees when you use an ATM to withdraw cash from your account. They may have a monthly limit on how much you can withdraw before they start charging you. If you intend to make ATM withdrawals often, you may want to consider a traditional bank account that does not charge ATM fees.
How to Choose a Student Account in a Digital Bank
There are a few things to consider when choosing a digital bank account for students. It is best to select an account that meets the following criteria:
Cheap International Transfers
Some digital banks charge high fees for international transfers, while others do not charge any fees. If you need to make international transfers often, choose a digital bank that charges low or no fees for international transfers.
Low Cost of Currency Conversion
Currency conversion fees can add up, so it is best to choose a digital bank that charges low or no fees for currency conversion. As an international student, you are likely to incur these fees when you make purchases in a foreign currency.
No Service Fees
Digital banks typically do not charge service fees, but some may charge for certain services such as wire transfers. If you need to use these services often, choose a digital bank that does not charge service fees.
Crypto Friendliness
Some digital banks allow you to buy, sell, and hold cryptocurrencies such as Bitcoin. This is a good feature as it encourages you to start investing in cryptocurrencies early. If you are interested in cryptocurrencies, you should choose a crypto-friendly digital bank.
Best Crypto-Friendly Banks You Should KnowSign-up Bonus
Some digital banks offer sign-up bonuses when you open an account with them. For example, you may get a $10 bonus when you open an account and deposit $100. This is an excellent way to get started with a digital bank.
Best Digital Accounts Comparison
When choosing the best digital bank accounts for international students, it is vital to consider the Traders Union general rating for digital banks. The rating considers parameters such as the minimum deposit and the interest yield. The list below shows the best savings accounts in terms of supported countries and currencies, wire transfer fees, conversion fees, and the monthly fee required to maintain the account.
| Bank Account name | Supported Countries | Supported currencies | Wire Transfer Fee | Conversion fee | Account fee | |
|---|---|---|---|---|---|---|
37 countries as shown in this link |
21 currencies including US dollar, euro, polish zloty, and rand. |
0.4%+ local network fee for the supported currency. |
2% for converting Euros to Sterling |
No monthly fee. |
||
30+ countries including the ones listed here. |
30+ currencies |
Free |
No conversion fee for up to €1,000 each month but charges 0.5% if you exceed this limit for standard and plus plan holders. |
No monthly maintenance fee. |
||
Any country that accepts MasterCard |
GBP |
0.26 GBP fixed fee and 3.49 GDP variable fee |
Free-only the mastercard exchange rate applies |
No monthly fee |
||
50+ currencies |
From 0.41% |
Starts at 0.41% |
Free |
|
||
GBP, EUR, RON |
Free but subject to currency exchange fee |
Starts at 2.5% of the transaction value. |
The Simple Monese Account is free with no monthly fee. |
|
||
38 currencies |
Free for Premium customers and €0.99 for standard customers |
1.7% on the withdrawal amount |
N26 Standard account is free |
Overview of the Accounts
Below is a brief description of each student account mentioned above, including the key features like usability and supported currencies.
Starling Bank Student Account
The Starling student account is available to students in the United Kingdom. When you open a current account with Starling, you earn an interest of 0.05% AER on balances up to £85,000.
The account makes it easy to keep track of your savings through the ring-fencing feature. With this feature, you can only spend what is available on your everyday balance.
Starling supports 37 countries and 21 currencies. They charge a wire transfer fee of 0.4% and a conversion fee of 2%.
Monese Student Account
The best thing about the Monese student account is that it makes it easy to track and manage spending from your phone. Students can use this account to receive, send, and store their money.
As a student using a Monese account, you will receive push notifications in real-time, so you know where your money is going. When withdrawing or spending money abroad, you can rely on the real exchange rates with no hidden fees.
Monese supports over 30 countries, so you are assured of getting an account no matter your location. The wire transfer fee is free, and the bank will only charge you the currency exchange fee, which is 2.5% of the transacted amount.
N26 Student Account
The N26 student account is designed to make saving easy for students. It is 100% mobile and does not cost anything to maintain.
It is also possible to create shared spaces if students wish to cost-share. N26 also provides statistics that give students a better insight into their spending. It also has an instant payment feature that makes it easy to transfer money in seconds.
N26 supports over 20 countries and more than 38 currencies. You will only incur wire transfer and conversion fees if you are using a standard account. This included €0.99 and 1.7% of the withdrawal amount, respectively.
Revolut Student Account
Revolut student accounts make it easy to break down spending by categories and group them into meaningful sections. As a result, it’s easy to track what you spend your money on and adjust your budget.
To save better, you can use the Vaults feature to set up recurring savings or save the change. The account will round up your payments to the nearest pound and stash the remainder in your vault.
Revolut supports over 30 countries and currencies. The account uses an interbank exchange rate if you want to convert your currency, which reduces the fees. You will only be charged a 0.5% conversion fee if you exceed €1,000 monthly.
Monzo Student Account
Monzo does not have a student account as such. However, its current account feature makes it one of the best accounts that students can have. With a Monzo account, students will have complete visibility into their finances.
They can also enjoy personalized budgeting since they can create custom spending categories to track their expenditures. Monzo will also round up your expenditure and save the change for you.
Monzo supports all countries that accept MasterCard. The wire transfer fees range between 0.26 and 3.49 GBP. For conversion, only the Mastercard exchange rate applies.
Wise Student Account
Wise, formerly TransferWise, is a student-friendly account that offers cheaper international money transfers. You can hold and manage your money in over 50 currencies. The best thing about Wise is that it uses the real exchange rate for all its transactions.
It also charges a low fee of 0.41% for both international money transfers and currency conversion. So, if you are looking to transfer money to your parents back home or to pay your tuition fees, you can do so without incurring high costs.
Best Digital Account for Students in the UK
If you are studying in the UK, the best digital account would be Revolut. It does not have monthly maintenance fees, and you can save on currency conversion and wire transfer fees. The account also offers unmatched budgeting and spending features, including spending categories and the vault.
If you enjoy investing in assets like crypto and stocks, Revolut also offers these features. For example, you can send, buy, and sell digital currencies without opening a separate account.
Best Digital Banks in the UKBest Digital Account for Students in the US
For students in the U.S., we recommend having a Wise digital account. The account won’t cost you anything to maintain. You will only be charged a small fee when you make an international money transfer or convert your currency.
The account also offers the real exchange rate for all transactions, which means you will not lose money on conversions. With Wise, you can hold your money in over 50 currencies. This means you can save on fees when traveling to different countries.
Best Digital Banks in the USThe Bottom Line
Digital bank accounts are the future of banking, and we believe that all international students should have one. Digital accounts can help you save on costs, manage your finances better, and enjoy unique features that are not available with traditional accounts. They are also more convenient since you can access them from anywhere in the world.
When choosing the best digital bank account for international students, consider the monthly maintenance, wire transfer, and currency conversion fees. You should also compare the features of each account to see which one best suits your needs. If you feel stuck, you can review the different accounts suggested in our article.
FAQs
How long does it take to send money abroad from the UK using Revolut?
The length of time will depend on the payment method you choose. The transfer will be instant if you’re making a payment to a Revolut user. However, it will take a few minutes to transfer to cards and a few business days for international transfers.
Can I use my Starling digital account abroad?
Yes, you can use your Starling digital account anywhere in the world that accepts Mastercard. You will only be charged a fee when you make a foreign transaction or withdraw cash from an ATM.
What is the best digital account for international students?
The best digital account for international students depends on your country of residence and specific needs. What suits you as a UK student may not be the best option for a student in the US, so you should do your research.
Can I still open an account with a local traditional bank?
Of course! If you feel more comfortable with a traditional bank or need certain services that digital banks don’t offer, go ahead. Remember that you may be charged higher fees for international transactions and currency conversion.
Team that worked on the article
Rinat Gismatullin is an entrepreneur and a business expert with 9 years of experience in trading. He focuses on long-term investing, but also uses intraday trading. He is a private consultant on investing in digital assets and personal finance. Rinat holds two degrees in Economy and Linguistics.
Gismatullin has been an author at Traders Union since 2019. His focus is creation of detailed reviews of brokerage companies and cryptocurrency exchanges, as well as analytical and educational articles on finance.
Rinat’s motto: Always be open to new experiments. By overcoming the hardships you will reach the stars that open to those who seek.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.
Olga has extensive experience in writing and editing articles about the specifics of working in the Forex market, cryptocurrency market, stock exchanges and also in the segment of financial investment in general. This level of expertise allows Olga to create unique and comprehensive articles, describing complex investment mechanisms in a simple and accessible way for traders of any level.
Olga’s motto: Do well and you’ll be well!