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For the vast majority of consumers, a bank account is one of the basic tools for financial security. But accessing something as essential as a bank account can be a challenge when you don’t have a Social Security number.
Without a bank account, non-U.S. citizens face a range of serious difficulties in managing their finances, including figuring out how to keep their money safe and how to avoid high fees for check-cashing services.
Fortunately, it is possible for non-U.S. citizens to open a checking account or savings account to prevent these issues, though it involves a bit more legwork and documentation than for U.S. citizens.
Key takeaways
- Non-U.S. citizens can open bank accounts in the U.S., but they may need to go through extra steps, especially if they’re nonresidents.
- Some banks and credit unions accept alternative forms of identification, such as an Individual Taxpayer Identification Number (ITIN), for non-U.S. citizens to open accounts.
- Opening a bank account can provide benefits such as lower fees, extra protection for your money and opportunities to build credit.
Required documents to open a U.S. bank account
To open an account, a bank or credit union needs to know it’s really you. It’s part of the U.S. government’s customer identification program, which sets the standards for how financial institutions should confirm their customers’ identities.
Verifying your identity will be different depending on the bank or credit union, but it typically involves providing the following:
- Photo ID
- Eligible documents to prove your name and birth date include an unexpired passport, a Permanent Resident Card and a foreign driver’s license.
- Proof of address
- A recent utility bill, formal letter with your name and address or employer paycheck can often serve as a proof of your current address.
- Initial deposit
- Not all banks or credit unions require an initial deposit but many do. Wells Fargo, for example, requires a $25 minimum deposit to open an Everyday Checking account.
- Individual Taxpayer Identification Number (ITIN)
- Many bank accounts pay interest, which is taxable income. Banks require an Individual Taxpayer Identification Number (ITIN) for nonresidents in order to supply information to the Internal Revenue Service (IRS) for tax-reporting purposes.
Many consumers are accustomed to doing tasks online, including opening a bank account, but non-U.S. citizens will likely find that’s not possible.
“Online account opening systems do not work well with individuals without [a Social Security number], due to the nature of identifying questions,” says Rebecca Morris Hoeft, CEO and founder of St. Paul, Minnesota-based Morris Hoeft Group.
As such, non-U.S. citizens may need to visit a physical bank branch and provide the required documentation in person to open a bank account in the U.S.
The necessity for citizens to visit a branch in order to open a bank account is a common practice. However, for nonresidents or noncitizens without a Social Security number, there are alternative identification options available. These options include providing a passport number, Alien Registration Number, U.S. immigration documents, driver’s license with photo, school ID with photo, or U.S. Employment Authorization Card with photo. Additionally, non-U.S. citizens can apply for an Individual Taxpayer Identification Number (ITIN) to meet their U.S. tax obligations.
Obtaining an ITIN involves completing Form W-7 and submitting it to the IRS along with proof of identity and foreign status documents. While the process of obtaining an ITIN can take around seven weeks or more, it is a necessary step for noncitizens to file their taxes in the U.S. Some banks and credit unions accept alternative IDs, such as ITIN, for opening accounts. Appointments can be scheduled with major banks like Bank of America, PNC Bank, Chase, and Citibank, which accept ITIN instead of a Social Security Number.
In addition to traditional banks, credit unions like DC Credit Union offer specialized accounts for non-U.S. citizens, while Bank On accounts are part of an industry initiative to provide banking services to unbanked customers. Despite the initial hurdles of obtaining alternative IDs, the benefits of having a bank account, such as lower fees, extra protection, access to direct deposit, saving opportunities, and credit-building possibilities, outweigh the challenges.
In conclusion, while the process of opening a bank account for non-U.S. citizens may involve additional steps, the financial security and opportunities that come with having a bank account make it a worthwhile endeavor.