Whether you’re planning to move to the United States of America or you are simply looking for a bank account in US dollars, you’ll presumably find opening a US bank account online as a non-resident to be a complicated process filled with varied requirements and quite lengthy bureaucratic procedures. However, while it can be tough, it’s certainly not impossible.
When you apply to open a checking or savings account at a bank or credit union in the U.S., the financial institution will need to verify your name, date of birth, address and ID number. And If you’re a non-U.S. citizen, ID requirements may not be identical to those for a U.S. citizen, however, keep in mind that a financial institution may let a non-U.S. citizen open an account, but not all banks extend that ability to a non-resident alien. For tax purposes, the IRS (Internal Revenue Service) characterizes an outsider as somebody who isn’t a U.S. resident or U.S. national. A non-resident
alien has not passed the green card test or the significant presence test.
Benefits of Opening a Bank Account in the U.S
Opening a bank account comes with a number of benefits. These may include:
- Achieving monetary security. Most checking and savings accounts are insured up to certain limits by the Federal Deposit Insurance Corporation and the National Credit Union Administration.
- Usage of debit cards. In the United States of America, many banks and credit unions offer debit cards to accountholders which are used to withdraw money from an ATM or make an online purchase or pay for in-store purchases.
- Getting access to direct deposit.
- Paying bills.
- Building a financial history.
- Boosting your chances of getting a loan for businesses or assets purchases
- Avoiding fees. With your own bank account, you don’t have to depend on pricey check-cashing services.
Types of U.S Bank Accounts
Most US bank accounts are either checking or savings accounts. Outline below are the attributes of both.
Checking accounts work like current accounts in some countries and provide services such as:
- Internet banking
- Bills and supplementarypayments
- Wire transfers
- Immediate debits using a debit card
- ATM withdrawals
Savings accounts, on the other hand, allow you to deposit money away for a long time and pay interest on the amount deposited. Although there are some restrictions on how often you can withdraw money from this type of account still most individuals prefer to checking accounts.
Both checking and savings accounts come with the following:
- A routing number to identify your bank.
- An account number to identify your account.
Requirements for Opening a Bank Account in the U.S
A bank general requirements to open an account in the United States of America may include the following:
- Proof of identity. This can include a valid government-issued identification document such as an ID card or passport.
- Proof of address. This can be an Utility bills, bank or credit card statements or lease agreements.
- Social service number. This is usually the Social Security Number or a Taxpayer Identification Number.
- Finally, a Cash deposit set by the bank.
Keep in mind that requirement may vary depending on the state or financial institution.
Whether you’re a U.S. citizen or not, you typically must be at least 18 years old to open either a checking or savings account and typically must have a U.S. address. It also is possible for an undocumented immigrant to open a bank account in the U.S. The Key requirements include having an Individual Taxpayer Identification Number and a U.S. address.
But in most cases, a non-U.S. citizen cannot open an account online. Instead, you’d need to visit a branch for a bank to open the account.
Alternatives for Identification
Banks or unions typically accept alternative forms of ID for non-U.S. residents.
For example, if you don’t have a Social Security number, you may be able to obtain an Individual Taxpayer Identification Number that can be used to open an account. Individual Taxpayer Identification Numbers are available only to specific non-resident and and their dependents who can’t get a Social Security number.
Requirements for other types of ID from non-U.S. residents can differ among banks and credit unions. Bank of America, for instance, spells out these identification requirements.
For a primary ID, Bank of America wants one of the following:
- A Foreign passport.
- U.S. non-immigrant visa and border crossing card.
- Mexican, Guatemalan, Dominican or Colombian consular ID for south American or Canadian citizenship certificate card.
For a secondary ID, Bank of America asks for one of the following:
- Foreign driver’s license
- U.S.-issued work ID card.
- Debit card having either a Visa or Mastercard logo.
- Retail credit card from a well known company.
- U.S. State Department ID.
- Mexican voter registration card for a Mexican
Some banks or credit unions may accept an alien registration number card from a non-U.S. citizen who’s trying to open an account. The seven- to nine-digit alien registration number could be found on numerou. documents, such as a green card, from the U.S. Citizenship and Immigration Services
How To Apply for an ITIN (Individual Taxpayer Identification Number)
As mentioned earlier, ITIN is important for a non-resident looking to open a U.S bank account. Here are the steps for getting a Individual Taxpayer Identification Number:
- Fill out a W-7 application form and submit it to the IRS along with your finished tax return.
- Submit original documents verifying your identity and status as a foreigner.
While it may require a bit more time and endeavor to open a U.S. bank account as a non-U.S.resident, the benefits of doing so beats the steps required.
And as always, Damalion is an independent firm that assist in all ways possible including opening a bank account in the U.S as a non residents or citizen.