How to Open a Bank Account in the US as a Non-Citizen

Can a non-US citizen open a bank account?

Yes, it's possible to open a bank account in the US as a non-citizen. Some banks only allow US citizens, or those with a permanent address in the US to open an account. Others are open to non-residents, as long as they have a Social Security Number (SSN), and many will request that you visit them in-branch to complete the process. The nature of what is or isn’t allowed will vary on a bank-by-bank basis, so you’ll need to reach out directly and discover what your options are with the bank of your choosing.

The benefits of opening a bank account in the US as a foreign citizen

While it’s possible to transfer money to an international account while living in or working for a company in the US, it’s not an ideal solution. There are a host of reasons why opening an account in the US can be beneficial to non-residents.

• Using debit cards. While most international debit cards will work overseas (if you give your bank notice), they’ll be victim to hefty exchange rate fees. Having the freedom to use a local card will make purchases much simpler and cost-effective.

• Your paycheck. Rather than going through the hassle of being paid to a foreign account, then transferring the money (at a cost to you), your pay will be instantly deposited into an account which you regularly use.

• Paying bills. Bills are also simplified with a local account. You’ll be able to set up direct standing orders, and generally find it simpler to monitor what money is coming in and going out of your primary account for bill paying.

• Getting a loan. Your chances of getting a loan with the banking institution you’re using are significantly increased, thanks to your existing relationship with them.

What documentation do I need to open a bank account in the US?

Some banks will ask you to provide evidence of both a US and foreign address in order to open an account. Others may be more lenient. The documentation you’ll need to open an account in the US will vary from bank to bank, and could be different depending on if you apply in person or online.

Possible requirements include:

• Proof of US address

• Proof of a foreign address

• A valid driver's licence, passport or other official government identity document

• SSN or individual taxpayer identification number (ITIN)

• Debit/credit card from your home country

• Deposit payment

• Immigration documents

• Proof of income

These forms of documentation might also be broken down into primary and secondary categories. These will again differ depending on the bank in question. You should always expect to be asked for some form of ID (passport of driving licence), as well as proof of address.

How to find the required documentation?

You will hopefully know where your passport and primary ID card is (if not, start checking your shelves). But it might be harder to know how to locate things like official proof of address, or a social security number – assuming you even have one to begin with.

Social Security Numbers

Social security numbers are unique nine-digit numbers issued by the US government to track a person's income and determine their eligibility for certain social security benefits.

There are several different ways to apply for an SSN:

• Using the SS-5 form

• When making your visa application

• When making an application for employment authorisation

Individual Taxpayer Identification Number (ITIN)

If you're not eligible for an SNN, you may apply for an ITIN tax processing number instead.

You can download Form W-7 online and then apply either online or in-person. You should receive your ITIN by mail within seven weeks.

Proof of address

There are several places you should be able to find official proof of your address. This has to be in the form of an official documentation for it to be accepted by a US bank. Some good examples include:

• Utility bills

• Any existing bank statements

• Lease agreements

• Student enrollment documentation

How long does it take to open a bank account?

The process for a non-citizen is longer than it used to be, with stricter background checks and requirements than prior to the start of the century. With times for opening an account in the US varying, it’s important to start the process as early as possible.

Factors that can determine how long the process takes include:

• Whether you have all the necessary documentation

• The bank that you're applying to

• The type of account that you're opening

• Whether you're already in the US or applying from overseas

• Whether you're applying online or in person

• How long you've been in the country

It's often easier to apply once you're already living in the US and can visit a bank in person. If this is not a practical solution, and you need to apply for a bank account before arriving in the country, it will take a little more time to get it sorted.

Do you need a social security number to open a US bank account?

While many US banks ask for your Social Security Number as part of their application process, it's not a legal requirement. Some banks will accept an Individual Taxpayer Identification Number in the place of an SSN, and others may only require proof of your identity and address.

Depending on your circumstances, the following banks may consider your application for an account without an SSN.

• Bank of America

• US Bank

• Chase Bank

• TD Bank

• Citibank

• HSBC

• Wells Fargo

Different types of US banks

As you might expect, there are a variety of different options when opening a bank account in the US as a non-resident. First of all, you’ll want to decide between checking and saving accounts.

The former offers the ability to safely hold funds which can be easily accessed via a card for transactions, while the latter is best for building up money over time. Those staying in the US for a long time might need both.

Whichever account you choose, you need to decide what kind of bank you’ll operate through. Some of the most common options include:

• International banks. International banks are established banks like HSBC, Citibank and Barclays. It may be possible to set up an international bank account in US Dollars from your home country.

• Correspondent banks. This is a bank in your home country that's partnered with a US bank. A correspondent bank may set up an account in the US overseas, even if they are not an international bank. Get in touch with your home bank to find out if they have such partnerships.

• Online banks. These are banks that operate online and have no physical branches or in-person assistance. Online banks typically only accept applications from US residents.

• Local banks. These banks operate within a particular state or region. They're suitable for local people who won't be banking or using their cards outside their local area very often. Local banks are unlikely to open an account from overseas.

• Traditional banks. These are US banks that predominantly serve US customers. You'll probably need to visit the US to open an account with a traditional US bank.

US banks which offer accounts to non-residents

A lot of popular American banks will offer some kind of account to foreign customers. Here are some household names which non-residents of the US can apply for an account with:

• Citibank. With a strong presence in the US, Citibank is a good option for non-citizens owing to its wider global reach. With branches dotted across the world, it’s easier for both individuals and businesses to establish an account in their native country first, before transitioning to a US account.

• JPMorgan Chase. This bank does a particularly good job of managing international business accounts, with a focus on investment and account management support. Regular Chase customers can also benefit from traditional checking accounts without fees.

• Bank of America. Serving as one of the most recognisable institutions in the country, the Bank of America is the perfect choice for non-residents who have a fixed address in the US. They offer a wide variety of accounts, for both everyday banking and business purposes.

Can I open a US bank account online as a non-resident?

It is not possible to open an account with a local US bank online as a non-resident. This might be different with online banks in the rare circumstances that they offer accounts to non-US residents.

The same is not true of international banks, where the global nature of an account makes it easier to create an account from outside of the US. Reach out directly to the bank you want to open an account with for clarity on your options.

Do I need a US bank account to work in the US?

While it’s not a legal requirement to be paid into a US bank account while working for an American company, it is a lot easier and safer. It makes paying tax simpler, and means you won’t run the risk of making a mistake when you file your return at the end of the tax year.

This is something you’ll want to discuss with an employer during the hiring process. If you need further clarity on how to successfully transfer money to an international bank account, you can check out our useful guide on the subject.

How much does it cost to open a bank account?

Opening a bank account won’t cost you anything, but there can be fees associated with continuing to use one. These are usually paid in monthly instalments, or as part of a transaction or withdrawal. Some of the most common charges you can expect from a US bank are:

• Maintenance fees. These are monthly fees for using the service. Maintenance fees can vary depending on whether you choose a basic or more premium service. Some banks may waive this fee, providing you deposit a minimum amount each month.

• ATM fees. You can usually withdraw money for free from your bank's ATMs and other banks in the same network. You may be charged for withdrawing cash from ATMs on different networks.

• International transfer fees. If you plan to send money overseas regularly, using your bank might not be the best way to do so. Besides upfront international transfer fees, you may also find yourself charged a 'hidden fee' in the form of a poor exchange rate.

It's usually quicker, more convenient and cost-effective to use a specialist money transfer service to send money abroad, rather than a traditional bank-to-bank transfer.

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This communication is intended for marketing purposes only and does not constitute or provide legal, tax, investment or financial planning related advice.