Money and banking

US Currency

$0.01 (1¢) The coin is called a penny and is a copper-colored coin.
$0.05 (5¢) The coin is called a nickel and is a silver-colored coin, larger than a penny.
$0.10 (10¢) The coin is called a dime and is a silver-colored coin. It is the smallest size US coin, even smaller than the penny.
$0.25 (25¢) The coin is called a quarter and is a silver-colored coin. It is larger than a nickel.
A few silver-colored 50¢ coins (half-dollars) and $1.00 coins are also in circulation.

With the exception of some more recently-printed bills, paper money is all the same size and color. These bills come in $1, $5, $10, $20, $50, and $100 denominations; you may still find some old $2 bills in circulation too. Larger denominations are rarely seen.

Banking

Opening a bank account

Upon your arrival at Rensselaer, you will want to open a bank account at one of the several U.S. banks in Troy. The most convenient bank is located in the lower level of the Rensselaer Student Union, on the corner of 15th Street and Sage Avenue. All banks in Troy have procedures for handling funds from overseas.

Also, check your home bank's procedures for transferring money to a U.S. bank. Keep in mind that a personal or bank checks from abroad may require up to four weeks to clear in your U.S. account.

Checking and saving accounts

One of the first things you should do upon arrival is to deposit your money into a bank. It is unwise to keep large amounts of cash in your room or apartment! There are basically two types of accounts you can use at a bank.

A checking account is used for the payment of bills and shopping needs. A savings account is used to keep money you will not be using so that it may earn greater interest. There are many kinds of checking and saving accounts.

Most banks charge a service fee for the use of checking accounts for the servicing of each check that is written and for the monthly statement of the account. These service charges vary considerably from bank to bank, and can be dependent upon your daily balance, average monthly balance, and/or the number of checks you write. Each bank has different policies and charges; compare them before deciding.

Checking accounts are easy to open. It involves depositing a sum of money and filling out of the required forms. You will get a package of temporary checks the same day, while a set of checks with your name and address are ordered from the printer. These personalized checks take a few weeks to arrive.

If you are unsure how to write a check, the procedure is explained a little further on in this document. If you still have questions, speak to a bank representative or an ISSS staff member and ask them to show you how. It may be a little different from the way to which you are accustomed.

Most stores will require at least one form of picture identification, such as a driver's license or a Rensselaer ID, before they will accept a check.

Make sure you keep accurate records of your checks, since overdrawing, or writing a check when you do not have enough money in the account to cover it, will result in a large service charge; some charges may be as much $25.

When you receive your monthly statement, which contains records of your deposits and cancelled checks, be sure to compare it to your records.

Keep in mind that a personal check from a local bank may not be acceptable outside the Capital District (the metropolitan area including Troy). Therefore, we recommend that you carry Travelers Checks when you travel.

WARNING: Never send cash through the mail!

Automatic Teller Machines (ATMs)

Most banks in the U.S. offer automatic teller machines (ATMs) that allow 24 hours access to your savings and checking accounts. Your bank supplies a special card with a Personal Identification Number (PIN), which can be used on ATM machines. ATMs allow you to withdraw cash, deposit funds, or check balances in your account. Since most ATMs are part of a large network, you may be able to access your accounts from ATMs anywhere in the United States.

Credit and charge cards

Besides checks and cash, there are other accepted forms of payment, which include credit and charge cards. A credit card allows you to carry a balance from month to month. If you make a partial payment to what you owe, then an interest is charged on the outstanding balance. A charge card differs from a credit card in that the bills are to be paid in full each month. Charge cards typically have high monthly fees as compared to credit cards, which may have a low or no monthly fee at all.

Interest rates and monthly fees on credit cards vary widely, so you should look for better rates and fees before signing up for a credit card. Though a very convenient means of payment, credit cards must be used with caution. If they are not used wisely, high credit card debts can accumulate very quickly.

Because of the U.S. Patriot's Act, banks are now requiring the following to open a bank account:

In order to be able to make a wire transfer, you will need to have the following:

For special services at area banks, such as foreign drafts and transfer of money from overseas, consult the different banks directly.

Last modified: Apr 22, 2011
International Services for Students and Scholars, Phone: (518) 276-6266, Fax: (518) 276-4839