Opening a bank account in the U.S. may seem quick and easy for American citizens, but for non-U.S. citizens, the process can be more complex and time-consuming due to additional documentation requirements. If you are new to the U.S. and looking to set up a bank account, here is what you need to know.
How Opening a Savings Account Works in the U.S.
Having a U.S.-based bank account offers various benefits, such as paying bills, accessing ATM and debit cards, receiving funds through direct deposit, and using money transfer services like Venmo. However, the process for non-citizens differs due to federal regulations that categorize foreign individuals as resident or non-resident aliens.
- Resident aliens are considered lawful permanent residents or individuals meeting substantial presence tests.
- Non-resident aliens do not hold U.S. citizenship, green cards, or substantial presence in the U.S.
According to the Federal Financial Institutions Examination Council (FFIEC), non-resident alien deposits in U.S. banks range from hundreds of billions to approximately $1 trillion. Financial institutions have stringent identity verification protocols for non-American account applicants, including international students, business owners, and visa holders.
Legal permanent residents experience a similar account opening timeline to U.S. citizens. However, non-citizens must navigate differing document requirements and application processes based on their status and the institution they choose.
What You Need to Open an Account
To open a bank account, you must provide proof of identity, including your name, birth date, address, and a valid identification number. Original documents are required, as photocopies are typically not accepted. Additionally, a minimum deposit may be necessary to activate the account.
Identification
Bank account applicants need to present government-issued photo identification that confirms their nationality or residence status. For U.S. citizens, this can be a driver’s license or passport, while non-citizens may use a valid foreign passport, green card alien ID, or other recognized documents with photo ID.
Proof of Physical Address
Be prepared to show evidence of your current U.S. address, such as a utility bill or employer documentation. Some financial institutions may restrict membership to specific geographic regions, requiring proof of residency or employment within their service area.
Social Security Number or ITIN
While some accounts may be opened without a Social Security number, earning interest would necessitate having one or an Individual Taxpayer Identification Number (ITIN) due to tax obligations. Non-resident aliens without SSNs can apply for an ITIN using IRS Form W-7. Additional documentation, such as a home country tax ID, may also be requested by certain banks.
If you are a non-resident alien, opening an account may require an in-person visit to a bank branch, as post-9/11 security measures have limited online applications for foreign accounts. Minimum deposits vary by institution, but generally range from $5 to $50.
Challenges With Opening an Account
Diverse factors, such as nationality, income sources, and desired financial activities, can pose challenges for newcomers opening accounts. Banks may subject applications to added scrutiny or consider them higher risk based on various criteria, including the applicant’s country of origin, job responsibilities, or financial transactions.
- Home country regulations
- Professional roles impacting financial transactions
- Unusual banking activities
- Identity verification
- Source of wealth disclosure
Certain nationals, like Cuban residents in the U.S., face specific compliance requirements when opening bank accounts due to sanctions. International students must provide multiple forms of identification and immigration documents for account approval, with larger institutions often preferred for non-traditional applicants.
Can I Open a Bank Account Without SSN or ITIN?
Non-residents may open accounts without SSNs or ITINs, but earning interest mandates having one. Tax obligations apply to all interest earnings, even minimal amounts, necessitating taxpayer identification for compliance.
Can I Open an Online Bank Account if I’m Not a U.S. Citizen?
Non-resident aliens may encounter obstacles opening online accounts due to federal guidelines and internal policies limiting eligibility to U.S. citizens or legal residents with a U.S. address.
Can a Tourist Open a U.S. Bank Account?
Tourists seeking U.S. bank accounts should verify bank requirements and potential restrictions, such as requiring a U.S. physical address for account activation. Prepare necessary documents, like a tourist visa, before visiting a bank branch, ideally choosing multinational institutions for easier account approval.
Investopedia / Yurle Villegas
The Bottom Line
Foreign nationals face additional challenges when opening U.S. bank accounts, particularly those lacking resident-alien status. Consider establishing a relationship with a multinational bank with a home branch before moving to the U.S., facilitating smoother account application processes at U.S. branches.