One big question is how to carry money to college?
The various ways are
1. Currency
2. Travel cheques (TC)
3. Cash cards or Forex cards.
Let me explain the options first, and follow up with my analysis.
1. Currency: You can carry currency from India, just in case you are comfortable and confidence to carry the large sum of money directly and deposit it in the bank here.
There are issues with this, it is obviously not safe, and there are limits to the physical currency you can carry in one time. I think it is $4,000/- to bring into US in cash.
2. Travel Cheques:
These are more like the demand drafts (DD) we buy in India. The cheques have to be purchased at the face value, at the conversion rate for that day. Like currency these too have a premium attached to it, meaning, the price will be usually higher than the conversion rate. When I bought my TCs, the conversion rate was 60.03 and the TC costed 60.30. The price is usually similar to the currency notes. These are just like currency, but there are advantages to this over cash.
1. The travel cheques never expire. Once you have purchased them they can be used by you anytime.
2. They carry your signature: When you buy the TC, the seller will take your signature on the TC, and on his selling foil. And when you present the TC for clearance or you sell the TC at a vendor, the vendor will ask you to sign the TC in front of him. The signature will be checked online with the original sign you made while purchasing. ( I learnt this later ).
3. Security: These are numbered and are uniquely attached to you: In case you loose your TC, you need not panic. At the time of sale, the TC vendor will write the TC serial number on a secure foil and handover to you, that you are required to keep safely. Just in case you loose the TC, in any country (may be in transit or what ever), just call up the local AmeEx and tell them that you lost your TCs, and give them the TC numbers, and these will be frozen.
Even if some one tries to forge your sign, since you have alerted AmeEx, the TC will be secured. After confirming the loss, you can always ask for new TCs to be issued for the lost value for a minimum charge of as low as 150/- rupees.
Further all TC are eligible for clearance only when supported by a Govt issued ID like the passport. This makes the TC the safest way to carry money.
Once you reach the University, you can deposit the TC into the bank, and immediately the money will be credited into your account. If you give $100 Tc, you will get $100 right away into your bank.
At UNT, you are required to open Wells Fargo account. You would do this on the first or second or second day in UNT. So if you are bringing your TCs, immediatly deposit them into the account and enjoy the convenience of using your money immediately.
3. Cash Cards: HDFC Forex, ICICI Forex, Axis travel Card:
These are products that have become available recently in India. These are convenient to use and carry. You have to preload the card with rupees equivalent to $ and use as you go. You can only use upto the sum amount in the card. It can be swiped like a debit or credit card at point of sale. But there are big disadvantages as follows:
a) The card can be recharged ONLY FROM INDIA
b) The card does not carry the owners name. So the security is low, more over some stores may not accept as they are not sure if the card belongs to you!
c) Once anyone swipes, the money is gone. Even the bank people agree that there can be little chances of getting back. ***
d) The pin is given by the bank and you cannot reset the pin.
e) BIGGEST DISADVANTAGE: every time you withdraw money from an ATM using the card, you pay a fee of $2. If you think I will not need cash, think again, laundry, petty transactions, coke vending machines, etc all need $1 note or coins. You just cannot escape using currency.
f) LOSS: In a case that you loose the card, you to report to the Bank, most probably in India. They will replace the card, but THEY WILL SEND CARD TO YOUR INDIAN ADDRESS. Some one should bring the card for you.
g) There is a withdraw limit. Varies from bank to bank.
Final Judgement: Many people who bring cash cards get vexed up ending up paying $2 every time drawing money from ATM. Hence they pull out all the money from ATM and deposit into the bank account and use it. More over the disadvantages of limited acceptability, low ease of refill of card, and no contribution to credit history makes this a far less popular option.
*** Using a debit or credit card in US is by far the safest, safer than the cash card. Even if you loose your debit card and it is misused, there is a 99% chance that you get your entire money is about 2 weeks. If it is your credit card, 25% of the fraud money is returned immediately and full amount is 2 weeks time. You cannot get this assurance of security from any cash card.
My advise: Bring about $200 in cash, and rest all money is travel cheques. Take a cash card for not more than $300. This way your transition into american banking system will be smoother.
I hope my ideas helped you. Do post in your comments.
The various ways are
1. Currency
2. Travel cheques (TC)
3. Cash cards or Forex cards.
Let me explain the options first, and follow up with my analysis.
1. Currency: You can carry currency from India, just in case you are comfortable and confidence to carry the large sum of money directly and deposit it in the bank here.
There are issues with this, it is obviously not safe, and there are limits to the physical currency you can carry in one time. I think it is $4,000/- to bring into US in cash.
2. Travel Cheques:
These are more like the demand drafts (DD) we buy in India. The cheques have to be purchased at the face value, at the conversion rate for that day. Like currency these too have a premium attached to it, meaning, the price will be usually higher than the conversion rate. When I bought my TCs, the conversion rate was 60.03 and the TC costed 60.30. The price is usually similar to the currency notes. These are just like currency, but there are advantages to this over cash.
1. The travel cheques never expire. Once you have purchased them they can be used by you anytime.
2. They carry your signature: When you buy the TC, the seller will take your signature on the TC, and on his selling foil. And when you present the TC for clearance or you sell the TC at a vendor, the vendor will ask you to sign the TC in front of him. The signature will be checked online with the original sign you made while purchasing. ( I learnt this later ).
3. Security: These are numbered and are uniquely attached to you: In case you loose your TC, you need not panic. At the time of sale, the TC vendor will write the TC serial number on a secure foil and handover to you, that you are required to keep safely. Just in case you loose the TC, in any country (may be in transit or what ever), just call up the local AmeEx and tell them that you lost your TCs, and give them the TC numbers, and these will be frozen.
Even if some one tries to forge your sign, since you have alerted AmeEx, the TC will be secured. After confirming the loss, you can always ask for new TCs to be issued for the lost value for a minimum charge of as low as 150/- rupees.
Further all TC are eligible for clearance only when supported by a Govt issued ID like the passport. This makes the TC the safest way to carry money.
Once you reach the University, you can deposit the TC into the bank, and immediately the money will be credited into your account. If you give $100 Tc, you will get $100 right away into your bank.
At UNT, you are required to open Wells Fargo account. You would do this on the first or second or second day in UNT. So if you are bringing your TCs, immediatly deposit them into the account and enjoy the convenience of using your money immediately.
3. Cash Cards: HDFC Forex, ICICI Forex, Axis travel Card:
These are products that have become available recently in India. These are convenient to use and carry. You have to preload the card with rupees equivalent to $ and use as you go. You can only use upto the sum amount in the card. It can be swiped like a debit or credit card at point of sale. But there are big disadvantages as follows:
a) The card can be recharged ONLY FROM INDIA
b) The card does not carry the owners name. So the security is low, more over some stores may not accept as they are not sure if the card belongs to you!
c) Once anyone swipes, the money is gone. Even the bank people agree that there can be little chances of getting back. ***
d) The pin is given by the bank and you cannot reset the pin.
e) BIGGEST DISADVANTAGE: every time you withdraw money from an ATM using the card, you pay a fee of $2. If you think I will not need cash, think again, laundry, petty transactions, coke vending machines, etc all need $1 note or coins. You just cannot escape using currency.
f) LOSS: In a case that you loose the card, you to report to the Bank, most probably in India. They will replace the card, but THEY WILL SEND CARD TO YOUR INDIAN ADDRESS. Some one should bring the card for you.
g) There is a withdraw limit. Varies from bank to bank.
Final Judgement: Many people who bring cash cards get vexed up ending up paying $2 every time drawing money from ATM. Hence they pull out all the money from ATM and deposit into the bank account and use it. More over the disadvantages of limited acceptability, low ease of refill of card, and no contribution to credit history makes this a far less popular option.
*** Using a debit or credit card in US is by far the safest, safer than the cash card. Even if you loose your debit card and it is misused, there is a 99% chance that you get your entire money is about 2 weeks. If it is your credit card, 25% of the fraud money is returned immediately and full amount is 2 weeks time. You cannot get this assurance of security from any cash card.
My advise: Bring about $200 in cash, and rest all money is travel cheques. Take a cash card for not more than $300. This way your transition into american banking system will be smoother.
I hope my ideas helped you. Do post in your comments.
