What Major Is Best For Investment Banking?

Many students dream of working in investment banking because of the high salary, big bonuses, and fast career growth. But one common question always comes first:

“What major is best for investment banking?”

The simple answer:
There is no single perfect major, but some majors give you a better chance to get into investment banking than others.

In this blog, we will explain in easy language:

What investment banks really care about
Best majors for investment banking
Pros and cons of each major
How to choose if you are still confused
Examples and a small salary calculation

This guide is written in a way that even a class 10–12 student or first-year college student can understand.

What Do Investment Banks Look For in a Candidate?

Before choosing a major, you must understand what investment banks actually want. It’s not only about your degree name.

Most investment banks look for:

Strong academic record
- A high GPA/percentage (for example, GPA 3.5/4 or above, or above 75–80%).
- Shows you are serious, disciplined, and can handle pressure.
Quantitative and analytical skills
- You should be comfortable with numbers, calculations, and data.
- You will work with financial models, company valuations, and Excel sheets.
Basic knowledge of finance and accounting
- You must understand:
  - Profit, loss, balance sheet
  - Cash flow
  - Interest, returns, valuation, etc.
Communication skills
- You must explain complex numbers in simple words to clients and seniors.
- Good writing and speaking skills are very important.
Internships and real-world experience
- Investment banks love students who have internship experience in finance, accounting, or related areas.

So, the best major is usually the one that:

Helps you build strong finance knowledge
Improves your math and analysis skills
Still allows you to score a good GPA
Gives you a good Plan B job if banking doesn’t work out

Best Majors for Investment Banking

Let’s look at the top majors that usually work well for investment banking, with pros and cons.

Finance

If you ask, “What major is best for investment banking?”, the most common answer is Finance.

Why Finance is great:

You learn:
- Financial markets
- Corporate finance
- Investment analysis
- Valuation and financial modeling
It is directly related to the work you will do in investment banking.
Recruiters immediately understand your background.

Pros:

Very relevant to investment banking
Good for interviews, as many questions are about finance
Many internship opportunities in banks, insurance, and finance companies

Cons:

Many students choose Finance, so competition is high.
You must still work on extra skills (like Excel, PowerPoint, networking).

Example:
Riya is a BBA student with a major in Finance. She scores 8.5/10 CGPA, does an internship at a small investment firm, learns Excel and PowerPoint, and participates in a finance club. She becomes a strong candidate for an investment banking analyst role.

Accounting

Accounting is another excellent major for investment banking.

Why Accounting is useful:

Investment bankers spend a lot of time reading:
- Income statements
- Balance sheets
- Cash flow statements
An accounting major makes you very strong in understanding company numbers.

Pros:

Deep understanding of financial statements
Very useful for valuation and financial modeling
Good backup career as an accountant, auditor, or tax consultant

Cons:

Sometimes too focused on rules and compliance, not always on markets and investments
You may need to learn some finance topics separately (like valuation or M&A).

Example:
Rahul does a major in Accounting. During college, he takes extra courses in Corporate Finance and Financial Modeling. In interviews, he confidently explains how to read financial statements and analyze profits, which impresses investment banks.

Economics

Economics is also a very popular major for investment banking.

Why Economics works:

You learn:
- How markets work
- How interest rates, inflation, and GDP affect companies
- Microeconomics (firms and individuals) and macroeconomics (countries and global economy)

Pros:

Strong theoretical foundation for markets and businesses
Good analytical and logical reasoning training
Useful for many careers: banking, consulting, policy, research

Cons:

Sometimes more theoretical, less practical
You may need to learn accounting and modeling separately

Example:
Sarah studies Economics and takes a few accounting and finance electives. She practices stock valuation and case studies. A bank hires her because she understands both the big picture (economy) and company-level numbers.

Business Administration / Management

A Business Administration or Management major (like BBA) is also a good path.

What you learn:

Marketing, HR, Operations, Finance, and Strategy
Basics of how companies run

Pros:

Broad knowledge of business functions
Good base to choose Finance specialization in later years
Many internship options

Cons:

Too broad if you don’t specialize in Finance
You must focus on finance-related subjects if you want investment banking

Tip:
If you choose Business Administration, always try to major or concentrate in Finance and take extra accounting classes.

Mathematics / Statistics

Math or Statistics majors are great for students who love numbers.

Why they help:

Strong quantitative skills are valuable in modern investment banking
Very useful for roles in:
- Risk management
- Quantitative research
- Trading
- Data analysis

Pros:

Shows you are good with numbers and problem-solving
Great for more technical or quantitative roles in finance

Cons:

May not cover accounting and finance basics
Can be very difficult, which may hurt your GPA if you are not careful

Computer Science / Engineering

Surprisingly, Computer Science and some Engineering majors are also acceptable for investment banking, especially for technical roles.

Why they are useful:

Banks use a lot of technology for:
- Trading systems
- Data analysis
- Automation
Coding skills (Python, SQL, etc.) are becoming more valuable.

Pros:

Very strong job market even outside banking
Good for FinTech, quantitative roles, and analytics

Cons:

Recruiters may worry you don’t know enough finance and accounting
You must show extra effort in learning finance

Example:
Aman studies Computer Science but joins an investment club, completes online courses in Finance, and builds a stock analysis tool as a project. This combination makes him unique and attractive to investment banks.

Double Majors and Minors: A Powerful Combination

If your college allows, you can create a strong profile by combining majors or adding a minor.

Some powerful combinations:

Finance (Major) + Accounting (Minor)
- Very strong for traditional investment banking roles.
Finance (Major) + Computer Science (Minor)
- Great mix of finance knowledge and technical skills.
Economics (Major) + Finance (Minor)
- Good for understanding both markets and corporate finance.
Math/Statistics (Major) + Finance (Minor)
- Excellent for more quantitative roles.

This way, you cover two important areas and stand out from other candidates.

What About “Non-Traditional” Majors?

You can still get into investment banking even if your major is:

History
English
Psychology
Political Science
Other humanities

But in that case, you must:

Maintain a very high GPA
Show interest in finance by:
- Joining finance/investment clubs
- Doing internships in finance-related roles
- Taking online courses (e.g., basic accounting, corporate finance)
Be strong in communication and writing, which is a big plus in IB

Example:
Neha studies English Literature but joins a stock market club, completes a financial modeling course, and interns at a small financial advisory firm. In interviews, she explains how her strong writing and communication skills help her prepare client presentations. This makes her profile unique.

A Simple Salary and Bonus Calculation Example

Let’s look at a very basic salary example for an investment banking analyst (just for understanding).

Suppose an investment bank pays:

Base salary: $90,000 per year
Bonus: 50% of base salary (this can be higher or lower depending on performance and company)

Step-by-step calculation:

Base salary = $90,000
Bonus = 50% of $90,000

50% of $90,000 = 0.50 × 90,000 = $45,000
Total yearly pay = Base salary + Bonus

Total pay = $90,000 + $45,000 = $135,000 per year

Now, if we want to find the approximate monthly pay:

$135,000 ÷ 12 months = $11,250 per month

Of course, this is a simple example and does not include:

Taxes
Rent and living costs
Other expenses

But it helps you understand why many students want to enter investment banking and why choosing the right major and building the right skills is important.

How to Choose the Best Major for You

Here is a simple step-by-step method to choose your major.

Step 1: Check your interest

Ask yourself:

Do I enjoy numbers and calculations?
Do I like reading about business, markets, and companies?
Am I okay with long working hours in the future?

If you strongly dislike numbers, a pure finance path may feel stressful.

Step 2: Check your strengths

If you are strong in math and logic → consider Finance, Economics, Math, or Engineering.
If you are strong in writing and communication → consider Business/Finance + extra focus on presentations and communication.

Step 3: Think about Plan B

Investment banking is very competitive. You should choose a major that also gives you a good backup career.

For example:

Finance / Accounting: backup careers in corporate finance, accounting, audit, etc.
Economics: backup in policy, research, consulting, analytics.
Computer Science: backup in IT, software, data science.
Math / Statistics: backup in analytics, data science, risk, research.

Step 4: Research your college

Check:

What majors are available?
Are there finance clubs or investment societies?
Are there campus placements or internship tie-ups with banks?

Common Mistakes to Avoid

When choosing a major for investment banking, try to avoid these mistakes:

Choosing a very hard major and letting your GPA drop
- A very difficult major + low grades is worse than an easier major with excellent grades.
Ignoring accounting and finance completely
- Even if you choose Math, CS, or Engineering, you must learn basic finance.
No internships or practical exposure
- Only theory is not enough; banks want to see real-world experience.
Focusing only on the major name
- Your skills, internships, GPA, and networking matter as much as your major.

Also Read: What Is The Rule Of 72 In Finance?

Final Answer: What Major Is Best for Investment Banking?

Let’s answer the main question clearly.

The best majors for investment banking are usually:
- Finance
- Accounting
- Economics
- Business Administration (with Finance specialization)
Strong alternatives include:
- Mathematics / Statistics
- Computer Science / Engineering (with extra finance learning)