How to open a bank account in the US for non-residents

Key Takeaways

Bank Requirements

• Not all US banks accept non-residents.
• Additional identification and documentation are required compared to US residents.
• In-person visits are typically mandatory.
• An Individual Taxpayer Identification Number (ITIN) might be necessary.

Step-by-Step Instruction for Opening a Bank Account

• Research and choose a bank.
• Gather the required documents.
• Schedule an appointment.
• Complete the application.
• Fund the account with the minimum deposit required.
• Receive account information.

Top 5 Foreigner-Friendly Banks

• Chase: Access to a vast network of ATMs and branches and offers various account options.
• Bank of America: Advantage SafeBalance Banking Account for international students and low maintenance fee, waivable with specific conditions.
• Wells Fargo: Global accessibility with branches in over 20 countries.
• HSBC: International bank with no foreign transaction fees.
• Capital One: No monthly maintenance, transaction, overdraft, ATM withdrawal or foreign transaction fees.

Most banks in the United States are known for having uptight and strict regulations. This was especially true when the USA PATRIOT Act was passed in 2001, requiring US banks and other financial institutions to up their game in verifying the identity of anyone looking to open a bank account.

The good news is that non-residents are allowed to open an account in the US. However, you’ll likely encounter a more rigorous process compared to what locals go through. It will involve more paperwork, identification and potentially longer wait times.

But don’t feel discouraged! While the process may seem complicated, knowing which documents to prepare can put you on the right track. Whether you’re an expat or an international student, we’ll guide you on how to open a bank account in the US as a non-resident. We’ll also explore additional options, like opening an Instarem account online.

Read on to learn more.

Types of Bank Accounts For Non-US Residents

In the US, bank accounts fall into two categories: those designed for personal use and those tailored for businesses. To get you started, here’s what they mean and their purpose:

Personal Account 

As the name implies, a personal bank account is mainly used for daily spending, savings, big purchases and other individual money transactions. Both savings and checking accounts are a part of this category.

While small banks in the US don’t accept non-residents, large banks like Wells Fargo, Bank of America and JP Morgan Chase typically allow them to open personal accounts.

Keep in mind that you have to go to the US in person to complete the process. This is due to stricter regulations implemented after the Patriot Act, requiring in-person visits for enhanced verification.

Business Account 

Also referred to as a corporate account, a business bank account supports companies in handling USD transactions, withdrawing funds, sending international wire transfers and more.

The only requirement for opening a US business account is owning a US-based business, which can either be an LLC (Limited Liability Company) or a C-corp (C corporation).

You can choose from three ways to set up a business account, including:

• At a traditional large bank
• Using virtual bank accounts
• Through an online-focused banking platform.

Before an account can be opened, you will be required to present proof of business address, articles of incorporation/organisation and an EIN confirmation letter for tax reporting, among other things.

Bank Account For Foreigners in the USA: What Documents Do You Need? 

Like any other financial institution, US banks will oblige you to prove your identity. Verifying your identity involves providing the bank or credit union with various details, including your address and phone number. This helps ensure the account is being opened by the rightful owner.

Here’s a brief overview of the required information:

• Personal information: Personal details such as your foreign and US addresses, date of birth, country of citizenship and occupation are usually requested.
  
  
• Primary ID: For your primary identification, you have to present one of the following identification depending on your circumstances:
  
  
• • A foreign passport with or without a visa;
  • U.S. non-immigrant visa and border crossing card;
  • Mexican, Guatemalan, Dominican or Colombian consular ID;
  • Canadian citizenship certificate card;
  • Green card with a photo or a state-issued ID with a photo.

• Secondary ID: As a secondary identification, your options include:
  
  
  • A foreign or US driver’s license;
  • A US-issued work ID card or badge;
  • Debit or major credit card with Visa® or Mastercard® logo;
  • A US State Department diplomatic ID;
  • A Mexican voter registration card with a photo;
  • A paycheck or pay stub from an employer;
  • A recent bank statement;
  • A recent utility bill with your name and address.

Moreover, you may also be required to present an ITIN (Individual Taxpayer Identification Number). The IRS issues ITINs to those who aren’t U.S. citizens or permanent residents, allowing them to file taxes legally.

To acquire an ITIN, follow these steps:

1. Complete Form W-7: Available from the IRS website, this document gathers your personal information.
2. File your tax return: Attaching your tax return can expedite the processing of your ITIN application.
3. Gather valid identification documents: Refer to the list mentioned earlier in this guide.
4. Submit everything to the IRS: You can mail the forms and documents or visit an authorised location to apply in person.

After submitting your paperwork, you can anticipate receiving your newly issued ITIN within seven weeks. If you haven’t heard back within that timeframe, contact the IRS to check on the application’s status.

Remember, this is just a general overview. It’s always best to consult with your chosen financial institution and the IRS for the most accurate and up-to-date information on their specific requirements and procedures.

A Step-by-Step Guide on How to Open a Bank Account in The US for Non-Residents

Although the process for opening a bank account for non-US citizens can vary from bank to bank, there are general guidelines you can follow. Here’s a step-by-step guide to help you get started:

Step 1: Research and Choose a Bank

Remember that not all US banks offer accounts to non-residents. Make sure you research and compare different banks, focusing on:

• Non-resident friendly: Look for banks explicitly stating they accept non-resident applications.
• Account type options: Choose an account that suits your needs. Check the required opening deposits, which can range from US$25 to US$100 depending on the bank.
• Fees and minimum balances: Compare monthly maintenance fees, minimum balance requirements and international transaction fees.

Step 2: Gather Required Documents

Get your documents in order. Since the US banks require in-person appointments for non-residents, make sure you have everything ready such as your passport, bank statements, utility bills and more.

We highly recommend that you call your preferred bank and ask for a complete list of requirements. Maintain clear communication so you can ensure a smooth application process with little to no delays!

 Step 3: Schedule an Appointment

Before opening an account, schedule an appointment to ensure you have dedicated time with a banker who can assist you. You can also do walk-ins if scheduling is not available, but be prepared for potential wait times at the bank.

Step 4: Complete The Application 

Fill out the bank account application form carefully and accurately. Be prepared to provide your details, contact information and financial information.

Make sure that you also accurately answer any questions the banker may have regarding your application and financial situation.

Step 5: Fund The Account

Banks will require an initial deposit to open the account. Depending on the bank, you may be able to deposit cash at the branch or wire transfer funds from your international account.

 Step 6: Receive Your Account Information

Once your application is approved, you’ll receive your account details, including your account number, debit card (if applicable) and online banking credentials (if available).

Top 5 Foreigner-Friendly US Banks To Choose From

Now that you know the basic requirements and the step-by-step instructions on how to open US bank accounts for non-US residents, you might be wondering which banks are foreigner-friendly.

While the level of foreigner-friendliness can vary among banks, most of them are known for being accommodating to non-residents. However, banks that stand out for international clients are those with zero foreign transaction fees, low minimum balance requirements and minimal monthly fees.

Take a look at this quick rundown of excellent choices for non-residents, along with details about their offerings:

Chase Bank Account For Non-Residents

Chase, owned by JPMorgan Chase, is the largest bank in the US. It is one of the most popular choices for foreigners and expats in the US, providing various standard and premium checking accounts, including specialised accounts for children and students.

One popular account for everyday use is called Chase Total Checking. It has a $12 monthly fee, but you can avoid it by meeting certain conditions. With this account, you can easily send and receive money using Zelle, do your banking online or on your phone and pay your bills online too.

It also comes with an Account Alerts feature, allowing you to monitor your finances and protect your account.

Bank of America Bank Account For Non-Residents 

Considered the second-largest bank in the US, Bank of America offers an Advantage SafeBalance Banking Account for international students in the US who need a bank account. It has no overdraft fees, comes with a $0 Liability Guarantee and offers digital banking.

You can also waive the US$4.95 monthly maintenance fee if you meet the following conditions:

• You’re a student under the age of 25.
• You maintain a minimum daily balance of $500 or more in your account.
• You are enrolled in Bank of America’s Preferred Rewards program.

Other types of Advantage Banking also include Advantage Plus Banking and Advantage Relationship Banking. With each account, you’ll get custom alerts, debit card controls, fraud protection, mobile deposits and many other features.

Wells Fargo Bank Account For Non-Residents

Non-residents looking for a US bank accessible from their home country can explore Wells Fargo. It has branches in over 20 countries, including popular destinations like Australia, China, Canada, Germany, Japan, France and Ireland.

Additionally, while their Everyday Checking account features a competitive monthly fee of only US$10, it is easily waived by either maintaining a minimum daily balance of US$500 or making total qualifying electronic deposits of US$500 or more. Young adults and college students with specific linked cards can also benefit from fee-free accounts.

With a Wells Fargo account, non-residents can enjoy contactless debit cards, Bill Pay, mobile deposit and card control, to name a few.

HSBC Bank Account For Non-Residents

Offering bank accounts to people in more than 45 countries, HSBC is one of the most foreigner-friendly banks. For example, in the US, the bank offers a Premier Checking account that eliminates everyday and foreign transaction fees to simplify international banking.

Once you open an HSBC Premier account, you enjoy additional benefits such as:

• HSBC Global Money: This mobile app-based, prepaid multi-currency account lets you manage finances in eight different currencies.
• Global Transfers: Effortlessly move funds between your HSBC accounts across different countries.
• Global View: Gain a consolidated view of all your global HSBC accounts in one convenient location.

HSBC also allows you to waive a US$50 monthly maintenance fee if you have one of the following:

• At least US$5,000 in total direct deposits every month.
• At least US$75,000 in total deposits and/or investments.
• A U.S. residential mortgage loan with an original loan amount of at least $500,000.

Capital One Bank Account For Non-Residents 

Capital One is one the most technologically-focused banks in the US, with around 800 branches and 2000 ATMs in the country.

But what makes this bank the most ideal choice for non-residents is because of its fee-free banking and interest-earning accounts. It has zero monthly maintenance fees, no foreign transaction fees and no minimum balance requirements.

Plus, their accounts earn interest to help your money grow:

• 360 Performance Savings: A high-yield account with a competitive 4.35% APY (as of February 2024).
• 360 Checking: Earn interest on your everyday banking with a 0.10% APY (as of February 2024).

Foreigners also view Capitol One as favourable due to its reputation of being helpful and pleasant to deal with. The bank boasts dedicated international customer service teams, digital capabilities, specialised products and more.

A Good Starter: Instarem Account For Non-Residents in the US

Since most US banks require physical presence before non-residents can open an account, flying to the US may not always be possible. Paperwork-intensive procedures can also be a major hurdle, making the entire process complex and time-consuming.

Thankfully, Instarem provides a favourable starting point for non-residents in the US. We can be your ideal first step for managing your finances as you settle into a new country.

• Fast and Easy Setup: Ditch the paperwork and lengthy application processes. Instarem lets you open an account online within minutes, often ideal for urgent financial needs.
• Accessibility for Non-Residents: No minimum income or employment proof is required, making it accessible for newcomers settling in or short-term residents.
• International Money Transfer: Send and receive money internationally with competitive rates and transparent fees.
• Mobile-First Convenience: Manage your account on the go with our user-friendly app, eliminating the need for frequent physical branch visits.
• InstaPoints: Earn with each transfer and use them to save up on future payments.

Always keep in mind that Instarem is not a complete replacement for a US bank account in all situations. You might not find all the features and functionalities you’d expect from a traditional bank account, such as check writing or interest on your savings.

While Instarem can be a convenient and accessible option for some situations, it’s crucial to weigh the limitations against your specific needs before relying solely on it to manage your finances in the US.

However, if you decide on this digital route and explore what Instarem has to offer non-US citizens, we’re ready to assist you every step of the way. Download the app or sign up here today!

Frequently asked questions 

Can non-residents open bank accounts in the US?

Yes, non-resident aliens can open bank accounts in the US, but additional requirements and steps compared to US residents or citizens may apply. In-person visits are also required.

What documents are typically required to open a bank account as a non-resident?

Commonly required documents include a valid passport, proof of non-resident status (such as a visa), proof of address (utility bill or rental agreement) and sometimes a taxpayer identification number (ITIN).

Are there specific banks that are more accommodating to non-residents?

Yes, some banks offer specific programs or accounts designed for non-residents such as international students in the US. This includes Wells Fargo, Bank of America and HSBC.

*Disclaimer: This article is intended for informational purposes only. All details are accurate at the time of publishing. Instarem has no affiliation or relationship with products.