American Bank Open Account Process Explained in Small Details

An American bank open account option could be challenging for a lot of people. Residents are less likely to face too much trouble, yet they’ll still have to bring in a variety of documents. However, non-residents are more likely to struggle here and there, not to mention the research involved.

There are more reasons wherefore you might need a bank account in the USA. Maybe you’re just trying to diversify your assets or perhaps you’re thinking of starting a business. Even if you travel a lot, having a local currency account is better than paying a fortune in conversion fees whenever you spend.

These being said, let’s take a look at what it takes to open a bank account in the USA and what kind of requirements you need to meet.

Main Considerations​

Before tackling the American bank open account process, you'll have to think about a few general things. They'll dictate the direction of the process. In other words, based on where you are or what you need, you could face some challenges or find a relatively straightforward process.

Most importantly, it depends on whether or not you’re a resident. If you have US residency, you’ll usually be asked for the SSN (Social Security Number) to prove it. Of course, there are more documents you need to bring in, but this is the element that makes the difference.

Non-residents will struggle a bit. Since you don’t have the classic SSN, you may need an ITIN. Then, there are also banks specifically aimed at foreigners. They’ll still have challenging verification processes, but they vary a little.

Then, if you're not a resident, you'll have to determine whether you want to open an account in person or over the Internet. Some banks allow opening accounts online, while others might be stricter.

If it’s a business account you’re after, keep in mind that taxes vary from one state to another. This means some states are seen as tax havens compared to others, so you may have to consider your location too.

Research types of accounts too, as there are more options:

• Checking accounts are designed for day-to-day operations and expenses. They often come with debit cards too.
• Savings accounts are more about storing money and gaining interest. Access to your funds could be limited, though.
• Money market accounts offer higher interest rates, but their requirements are also stricter. Plus, they require higher deposits.

It’s also worth considering certificates of deposit, brokerage accounts or individual retirement accounts, although they don’t necessarily operate like classic bank accounts.

Required Documents​

Before digging deeper, it’s important to realize that there are two sets of documents when considering an American bank open account procedure.

First, you have the general documents, which are standard and required by most banks and institutions. Second, you have the individual documents, which may vary from one bank to another. That’s why it’s important to research banks and consider their requirements as well.

When it comes to general documents, here’s what you’ll normally have to prepare:

• Proof of identity. This could be anything, but it has to be officially recognized and must include your photo, not to mention details like your date of birth. From this point of view, a passport is always recognized. Driver’s licenses are also accepted. Make sure they’re valid.
• Proof of address. Most American banks will require proof of address, meaning you can bring a bank statement, yet you'll usually be asked for a utility bill. A lease agreement may also work. Even if your foreign passport has the address on it, it doesn't always count.
• Social security number. The SSN is one of the main requirements when opening a bank account. Even if you don’t have one, you can still find banks that accept the ITIN (Individual Taxpayer Identification Number) instead.

These are the main requirements for residents. Non-residents may be asked for more:

• Proof of residence. This is similar to a proof of address, yet it’s also referred to as proof of tax residence. Normally, you can get it from the fiscal authorities in your country. For instance, if you’re British, you’ll need to contact the HMRC for a tax residence certificate.
• Personal references. Since it’s hard for an American bank to perform a KYC process for foreigners, extra references might be required. It doesn’t mean you can get them from a friend, as they’re usually required from your current bank.
• Extra verification documents. Different banks have different requirements. You could be asked for two utility bills, rather than one. You could also be asked for more forms of identification, not to mention other requirements if you open the account online, rather than in person.

How to Choose a Bank​

Choosing a bank for your American account is just like choosing a bank anywhere else. You obviously need to find a bank with a good reputation, but also a bank that’s been around for decades. A few industry awards are just as convincing.

Then, you need to consider the actual requirements in terms of documentation and decide if you can meet them. Explore the most common types of accounts too, as well as their fees and associated expenses.

This is common sense, but foreigners will need to know more about opening accounts in the USA. The local industry might be slightly different compared to other jurisdictions, so here’s what you can find.

Classic Banks​

These are the traditional banks you can find in any country. They’re quite varied. Some of them are national, others might be more local. Some of the leading names include Bank of America, Wells Fargo and Chase, just to name a few.

Credit Unions​

Credit unions are similar financial institutions, but they operate differently. Basically, they are member-owned. Sometimes, they may offer better deals than classic banks, as well as different types of accounts, so they’re worth a check.

Alternatives to Classic Banks​

Apart from the traditional banking institution, you can also start your American bank open account procedure with an online company.

Online banks often provide access to classic American bank accounts. Since they operate exclusively online, you won’t need to visit a branch. Fees are normally lower, while online features tend to offer more convenience.

Once again, like for any other banking institution, you’ll need to do a bit of homework and figure out which one is more suitable for your needs.

Such neobanks will usually require you to upload documents for verification, but they may also require video verifications through video calls.

FAQs​

Still unsure about the American bank open account process?

Can non-residents open an account in the USA?​

Absolutely, yet requirements are usually higher. For example, non-residents may have to provide more verification documents. Each bank has its own requirements for foreigners without residency, so it’s definitely worth researching options upfront.

Are online banks better than classic banks?​

Both options work well for different categories of people, so you’ll need to figure out what works for you. If you’re not a resident, online banks are often more attractive because most of them don’t require you to visit in person. Some do, so check upfront.

Can I open an American bank account without an SSN?​

Yes. However, most banks will require some sort of tax number. If you don’t have an SSN, you might be able to open a bank account with the ITIN. Non-residents from other countries may have to provide tax certificates from their own countries in order to be accepted in American banks.

Can I open an American bank account without visiting in person?​

Some banks allow American banks to open account processes without visiting in person. This benefit is mainly offered by neobanks and other institutions operating exclusively online. Other forms of verification will apply though, such as video calls with a bank representative.