If you’re a non-U.S. citizen spending time in America, you’ll likely want a safe place to stash your cash and provide a foothold for your financial life in this country. One of the best ways to accomplish this can be opening a bank account. However, there can be some hurdles when you are not a citizen. Fortunately, with a little knowledge, you can probably establish a relationship with a bank when arriving on U.S. soil.
Here, you’ll learn how to open a bank account in the 50 states, including the answers to:
• Can a foreigner open a bank account in the U.S.?
• What kind of identification is needed to open a bank account?
• How can you get an ITIN for identification purposes?
• What are alternatives to a U.S.-based bank account?
Can a Foreigner Open a US Bank Account?
Yes, it is possible to open a U.S. bank account as a non-resident. You may find, however, that not all banks may allow this. You’ll need to check with a specific financial institution to learn their policies, including what forms of identification will be required.
For example, you might ask about the process of opening a checking account for a non-U.S. citizen or what is needed to start a savings account. Find out in advance what the requirements are so you know what types of ID and other credentials are going to be necessary. Then you can prepare just what it takes to get your bank account up and running. The goal is no surprises, right?
Recommended: What is a Savings Account and How Does it Work?
Typical Requirements for Opening a Bank Account
Ready to open a bank account? Even if you are a U.S. citizen, you will have a number of documentation requirements to open a bank account. According to the USA PATRIOT Act of 2001, financial institutions must verify the identity of someone who wants to open a bank account to the “extent reasonable and practical.”
How financial institutions choose to manage this process can vary, but here are typical requirements whether you are opening a bank account online or in person:
• Contact information (name, address, phone number, email address).
• Two forms of current government ID, such as a driver’s license and Social Security card.
• If you haven’t used a Social Security card as a form of ID, the financial institution will still ask for your Social Security number (SSN).
• A current bill (such as a water, electric, or other utility bill) to confirm your current address.
• Minimum opening deposit (this is often $25, but may be as little as $1 or even zero).
Check with your bank of choice (or a couple of financial institutions that you are considering) for more details.
Alternative Forms of Identification You Can Use
If you are new to America, you may not have all of the documents mentioned above. Opening a bank account in a foreign country can therefore seem problematic. But don’t panic: When applying for an account, you may be able to submit alternative paperwork. Other options can include the following:
• If you don’t have a driver’s license, then you may provide a government-issued state ID or a U.S. military ID. All must be current/unexpired.
• Other forms of secondary governmental IDs (besides a Social Security card) can include your original or certified birth certificate or your passport; a passport can also serve as your primary form of ID.
• An ITIN, or Individual Taxpayer Identification Number, if you’re not eligible for a Social Security number.
Next up: More about an ITIN, which can be a vital piece of identification for non-U.S. citizens, allowing them to bank in America.
What is ITIN?
You may wonder, “What is an ITIN?” as you pursue a bank account as an immigrant. It’s an important point to learn more about and can unlock financial services for you. ITIN stands for an “Individual Taxpayer Identification Number,” as noted above, and, according to the IRS, this serves as a tax processing identification number.
The IRS issues this nine-digit number to people who need to have an identification number in the United States but are not eligible to get a Social Security number. A person’s immigration status is not relevant when applying for an ITIN because resident and non-resident aliens may each need to have this number.
Worth noting: Getting an ITIN does not authorize you to work in America. It is simply a number that is used for tax-reporting purposes.
How to Apply for an ITIN
If you are not a U.S. citizen and want to apply for an ITIN, you have a few options. The IRS lists the steps for a couple of different options:
• If you’d like to apply by mail, provide your IRS Form W-7 , proof of identity, tax return, and foreign status documents to the following address:
◦ IRS Austin Service Center, ITIN Operation, PO Box 149342, Austin, TX 78714-9342
◦ No return envelope is required for your documents to be returned. However, if you want your documents returned more quickly, you can include a prepaid express mail envelope or courier envelope.
• If you will need these original documents within the next 14 weeks (which can be how long processing takes), you may decide to apply in person at a Certifying Acceptance Agent (CAA). You can submit certified copies rather than the originals.
◦ If you’re waiting for your original documents and 14 weeks have passed, call 800-908-9982 in the United States or 267-941-1000 outside the country for an update on their return.
• Make an appointment at an official IRS Taxpayer Assistance Center . Multilingual operators are available.
Once you receive your ITIN, you can move ahead with opening a bank account.
Opening a Bank Account Without a SSN or ITIN
Can you open a bank account without an SSN or ITIN? You may well find that some banks and credit unions are willing to accept other forms of identification. For example, they might use:
• A passport number and the country that issued it.
• An alien identification card number.
• Another ID number issued by the government.
It can be a wise move to check in with a financial institution and see what their requirements are. By doing this, you can likely identify the right spot to open a bank account as a foreigner, using the forms of identification you can access.
Can Undocumented Immigrants Open a Bank Account?
What if you are an undocumented immigrant who wants to open a bank account? There are financial institutions which will accept you as a client without a Social Security number or ITIN.
You will likely need to provide:
• Proof of your name and date of birth. Acceptable documentation might be an unexpired passport, a domestic or foreign government-issued driver’s license, a birth certificate, or consular ID.
• Proof of your address. This might mean showing your driver’s license, a lease, or utility bill.
• An identification number. Assuming you don’t have an SSN or ITIN, an alien identification card number could be sufficient, or else a government-issued document (like a passport or foreign driver’s license) that proves your nationality or your residence.
There could be other requirements, depending on the financial institution where you want to open the account. However, the answer to “Can a non-U.S. citizen open a bank account?” (including those who are undocumented) is likely to be yes.
Benefits of Opening a Bank Account
Opening a bank account can be a vital step in establishing and maintaining your day-to-day financial life in the U.S. Let’s spell out some of the benefits. The Federal Deposit Insurance Corporation, or FDIC, lists numerous reasons why opening a bank account can be beneficial:
• Safety: A bank account can keep your money safe, and not only from theft. FDIC insurance keeps your money secure even if a bank fails, though that is a very rare occurrence.
• Convenience: You can seamlessly have a paycheck directly deposited into your account, eliminating the possibility of a lost or stolen paper check. You can pay bills from your account, and, with a debit card (provided by many accounts), you can easily swipe to pay for goods and services. You can also transfer money via P2P apps (or peer-to-peer apps), like Venmo and PayPal.
• Accountability: You can track your balance and the transactions made, and you’ll have a record of everything. You can set up alerts to stay informed about transactions and low balances. Also, once you have an account with a bank, you can then benefit from other services that the financial institution offers.
Depending on your situation, you may want to open an individual account solo or you might want to bank with another person, which will provide some joint bank account benefits. In either case, if you are a new owner of a checking account, it’s important to learn how to balance bank accounts and keep on top of your cash flow to avoid overdraft fees and the like.
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Alternative Accounts for Non-US Citizens
What if you are not a citizen, want to open a bank account, but don’t have or can’t get one of the standard accounts? Consider these options:
• See if a bank in your home country has a relationship with a bank in America. If a financial institution does have this kind of connection, it might pave the way for you to open an account at a U.S. bank.
• You can investigate an offshore account, which would be neither in your home country nor in the U.S. These accounts can have high minimum deposit and other requirements, but may suit some individuals.
• Another route may be to open an account with a financial services company which will allow you to receive your wages and move funds. Services such as Majority and Wise may provide options, though this may not give you all the benefits you seek from an online or traditional bank.
The Takeaway
Yes, you can open a bank account as a non-U.S. citizen and enjoy the convenience and security of a checking or savings account. However, extra steps are likely involved when it comes to providing forms of ID. An ITIN can be helpful when opening a bank account as a non-U.S. citizen. This form of identification can be worthwhile in getting your financial life up and running in America.
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FAQ
Can a non-resident open a bank account in the US?
The answer to “Can an immigrant open a bank account?” is yes. Opening a bank account in the U.S. as a foreigner comes with added steps: Those who don’t qualify for an SSN, or Social Security number, must identify themselves in another way, such as with an Individual Taxpayer Identification Number, or ITIN, that is acceptable to the financial institution.
How do I open a non-resident bank account?
You can check with a financial institution of choice to see whether they offer accounts to non-citizens and their specific policies on how a non-resident can open a bank account in the U.S. Ask what forms of ID you’ll need; you will likely be required to have an ITIN or an alternative document.
What identification is needed to open a bank account in the US?
Although specifics may vary by financial institution, in general, a bank will ask for contact information along with a document (say, a recent utility bill) that confirms your address; two forms of a government-issued ID; your Social Security number; and a minimum opening deposit. If someone isn’t eligible for a Social Security number, an ITIN may be an acceptable alternative. You may be able to open an account with neither an SSN nor an ITIN; check with financial institutions you are considering for details.
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SoFi members with direct deposit can earn up to 3.75% annual percentage yield (APY) interest on Savings account balances (including Vaults) and up to 2.50% APY on Checking account balances. There is no minimum direct deposit amount required to qualify for these rates. Members without direct deposit will earn 1.20% APY on all account balances in Checking and Savings (including Vaults). Interest rates are variable and subject to change at any time. These rates are current as of 12/16/2022. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet
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