As a newcomer to the U.S., finding a suitable place to keep and save your money is essential, but the process of opening a bank account may not be as straightforward as it seems. While American citizens can typically open an account with ease, foreigners, especially non-citizen residents, may encounter more hurdles and a lengthier process. However, opening a bank account is crucial for securing your funds and establishing a financial presence in the country. If you’re a non-citizen resident looking to open a bank account in the U.S., here’s what you need to know about the process.
The Basics
A savings account is a type of bank account designed to store money while earning a modest interest rate on the balance. It offers a safe and convenient place to save funds and is ideal for individuals looking to set aside money for emergencies, future expenses, or specific financial goals.
You’ll Need an ID
To open a savings account in the U.S. as a foreigner, one of the primary requirements is a valid form of identification. Most banks and financial institutions will ask for a government-issued photo ID, such as a passport with a valid visa or a driver’s license from the individual’s home country.
Social Security Numbers
While social security numbers are typically required for U.S. citizens to open financial accounts, non-U.S. citizens may still be able to open an account without one. Many banks offer Individual Taxpayer Identification Numbers (ITINs) as an alternative for those without a social security number. An ITIN is issued by the Internal Revenue Service (IRS) and allows foreigners to comply with U.S. tax requirements.
What’s Required
In addition to a valid ID, banks may require additional documentation to open a savings account for non-U.S. citizens. Commonly requested documents include proof of address, such as a utility bill or lease agreement, and proof of income or employment, which can be demonstrated through pay stubs, tax returns, or employment verification letters.
Online Banks
For non-U.S. citizens who may find it challenging to meet the requirements of traditional brick-and-mortar banks, online banks present a viable and convenient option. Online banks often have less stringent documentation requirements and may offer features like multilingual customer service and digital banking options.
Minimum Deposits
Many banks, both traditional and online, require a minimum initial deposit to open a savings account. The minimum deposit amount can vary significantly from one institution to another. Some banks may have no minimum deposit requirement, while others may ask for a specific sum, typically ranging from $25 to $500.
The Bottom Line
Opening a bank account as a foreign national can be a more complex and potentially stressful process compared to opening an account as an American citizen, particularly for those without resident-alien status.
If you are currently residing in your home country, it may be beneficial to explore U.S.-based multinational banks that have branches in your country. Opening an account with them before you relocate to the U.S. can be advantageous. Doing so allows international applicants to establish a business relationship with the bank, which can streamline the process of applying for a U.S. bank account at one of its branches in the United States.
