Opening a Bank Account in the US: Business vs. Personal

Opening a bank account in the US might feel a bit overwhelming, especially if you’ve just arrived in the country. But without one, everyday tasks like paying rent, receiving your paycheck, or sending money to family in other countries become challenging. We’ll walk you through the process in this guide.

At Remitly, we know the hurdles immigrants face, and we’re here to make your financial journey easier. Whether you’re a student, a worker, or just managing cross-border transactions, we’ll break down everything you need to know about opening a bank account in the US. 

Personal and business banking in the US  

The US banking system is complex and highly developed, with dual regulation at both the state and federal levels. With so many options, the type of bank account you choose will largely depend on your needs.

Importance of knowing your needs  

Different bank accounts serve different purposes. Consider factors such as how frequently you’ll access your money, whether you need a debit card, if you want to earn interest, and what types of transactions you’ll make most regularly. 

As an immigrant, you might need an account primarily to receive your salary, send money back home, or build savings in your new country. 

Many US banks also offer specialized accounts for different life situations, including dedicated options for students, seniors, or newcomers. 

Overview of bank account types  

Now that you’ve identified your priorities, you can decide which account type is the perfect match. In the US, your options will include the following: 

• Checking accounts: Designed for everyday transactions, such as withdrawing cash, paying bills, and making purchases. These accounts come with a debit card and check-writing abilities, allowing easy access to your money.
• Savings accounts: Intended for setting aside money and usually earn interest, helping your money grow over time. While you can withdraw funds from savings accounts, there may be limits on how often you can do so each month.
• Money market accounts: Combine features of both checking and savings accounts. They often offer higher interest rates than regular savings accounts but with limited check-writing abilities.
• Certificates of Deposit (CDs): Offer higher interest rates in exchange for leaving your money untouched for a specific period, ranging from a few months to several years.

The role of financial institutions  

In the US, you have several options when choosing where to open your bank account, such as:

• Traditional banks: These range from large national institutions with branches across the country to smaller regional or community banks. They offer in-person banking services but may have higher fees.
• Credit unions: Member-owned financial cooperatives that often provide more personalized service and better rates than traditional banks. However, they may have membership requirements.
• Online banks: Virtual banks that operate without physical branches. They offer lower fees and higher interest rates but without in-person customer service.
• Neobanks: These digital-only financial platforms usually operate through user-friendly mobile applications and often have fewer fees. Unfortunately, they may provide a more limited range of services. 

Necessary documentation to open a bank account  

Now that you know about bank and account types, what documentation do you need to get the process started?

1. Primary identification  

One of the cornerstones of the bank account application process is proving your identity using government-issued identification. Acceptable forms include:

• A valid US or foreign passport
• US driver’s license
• State-issued photo ID card
• Permanent resident card, or Green Card

Most banks will also request your Social Security number (SSN). This helps them verify your identity and report interest earned to the Internal Revenue Service (IRS). 

However, if you don’t have an SSN, there are alternatives. An Individual Taxpayer Identification Number (ITIN) is often accepted in place of an SSN for non-US citizens who aren’t eligible for the number. Some banks also offer accounts for customers without an SSN or ITIN, though options may be more limited.

It’s important to note that the new REAL ID card may streamline some of these requirements. Check with your preferred bank to confirm.

2. Personal information and proof of address 

Banks need to verify who you are and where you live as part of anti-money laundering regulations. In terms of Personal information, you must provide your:

• Date of birth
• Contact information, including phone number and email address
• Employment information, such as employer name, company address, and phone number

Meanwhile, the standard documents accepted as proof of address include:

• Utility bills—electricity, water, or gas—in your name
• Lease agreement or mortgage statement
• Property tax receipt
• Bank or credit card statement from another financial institution
• Vehicle registration or insurance policy

These documents need to be recent, usually from the last 30 to 90 days. They should also show your current address. If you’ve recently moved to the US or changed addresses, this requirement can sometimes cause hiccups. 

However, some banks may accept a letter from your employer or educational institution confirming your address. If you are staying with friends or family, a signed letter from them might do—check with the bank to confirm. 

3. Special considerations for non-US citizens  

If you’re not a US citizen, you may need to provide additional documentation.

• For international students: Your F-1 or M-1 student visa, an I-20 form, and a letter from your educational institution
• For temporary workers: Your work visa, such as the H-1B or H-2B visa, L-1, or TN
• For permanent residents: Your Green Card

Some banks may have more stringent requirements for non-citizens and will request information about your entry into the US, including your arrival date and the port of entry. Others specialize in serving immigrant communities and may offer more flexibility. 

Steps to open a bank account  

With all the basic requirements in place, you can start the step-by-step process of actually opening your bank account. Here’s how:

Step 1: Decide on the type of account  

Checking or savings account—which one will you choose? A checking account is ideal if you need to:

• Pay bills regularly
• Make frequent withdrawals
• Use a debit card for purchases
• Write checks

Key features of these accounts include monthly maintenance fees, minimum balance requirements, and ATM access. You could also enjoy overdraft protection options and mobile banking capabilities.

On the other hand, savings accounts are better if you want to:

• Earn interest on your money
• Keep funds separate from day-to-day spending
• Save toward specific goals
• Limit your ability to access cash impulsively

Many people opt to open both account types simultaneously, often linking them for easy transfers. 

Step 2: Gather the required documents 

Before visiting a bank or starting an online application, the necessary documents you need are:

• Primary identification, such as your passport, driver’s license, or other government-issued photo ID
• Secondary identification, like your SSN card, ITIN, or utility bill
• Proof of address
• Initial deposit in cash or check

Step 3: Applying online or in-person  

You have two main options for opening an account. For in-person applications, the process includes the following:

• Research banks and their requirements.
• Schedule an appointment.
• Provide all required documentation.
• Meet with a bank representative who will guide you through filling out the forms.
• Make your initial deposit.
• Receive temporary checks and/or a debit card, or have them mailed to you.

But if you’re making an online application:

• Visit the bank’s website or download their mobile app.
• Select the account type you want to open.
• Fill out the application form with your personal information.
• Upload or electronically verify your identification documents.
• Set up your initial deposit via electronic transfer from another account or mail a check.
• Wait for account approval and for your debit card to arrive by mail.

Choosing the right bank for your account needs  

To choose the right bank for your needs, you can compare features, fees, and the overall customer experience each option provides.

Comparing features

When evaluating banks, consider these key features:

• Mobile and online banking: Look for intuitive interfaces, comprehensive features, and good user reviews. Can you deposit checks remotely, transfer money easily, and get real-time notifications about your account activity?
• Debit card options: Most accounts come with a debit card, but features vary. Some offer contactless payment capabilities, integration with digital wallets like Apple Pay or Google Pay, or rewards programs.
• ATM network: Check the size and accessibility of the bank’s ATM network, especially in your local area and places you frequently visit. Using out-of-network ATMs often incurs fees.
• Branch availability: If you prefer in-person banking, check the location and hours of branches near your home or workplace.
• International services: If you regularly send money abroad, look for banks with favorable exchange rates and reasonable international transfer fees. Alternatively, consider using specialized services like Remitly for these transactions.
• Account integration: Many banks offer benefits for having multiple accounts with them, such as waived fees or higher interest rates.

Understanding monthly maintenance fees and overdraft fees  

Common fees to consider include:

• Monthly maintenance fees: Many accounts charge a monthly fee unless you maintain a minimum balance or meet other requirements.
• Overdraft fees: These are charged when you spend more money than you have in your account. Compare not just the fee amount but also the bank’s policies on overdraft protection.
• ATM fees: Using ATMs outside your bank’s network incurs fees from both your bank and the ATM operator.
• Wire transfer fees: Important if you need to move large sums of money quickly.
• Foreign transaction fees: Look out for these if you travel internationally or make purchases from foreign websites. 

Exploring customer service and accessibility 

Banking is a relationship, and customer service quality can mean a world of difference in your experience. The checklist below is fundamental for assessing your needs:

• Customer service hours: Some banks offer 24/7 support, while others have limited hours.
• Support channels: Consider whether you prefer phone support, live chat, email, or in-person assistance.
• Language support: Many banks offer customer service in multiple languages, which can be helpful for non-native English speakers.
• Accessibility features: Look for banks that offer accommodations such as screen reader compatibility for online banking or accessible branch facilities.
• Community focus: Some banks have customized programs or expertise serving immigrant communities or international customers.

Reading reviews from current customers can provide valuable insights into the real-world customer service experience at different financial institutions. 

Tips for a smooth account opening experience  

Initial deposit recommendations  

Most banks require an initial deposit when opening an account. The minimum amount varies:

• Many basic checking accounts require $25 USD to $100 USD to open
• Premium accounts may require $1,000 USD to $2,500 USD or more
• Some online banks have no minimum deposit requirement

Consider opening your account with slightly more than the required amount. This will help you avoid dropping below minimum balance thresholds that might trigger fees.

If you don’t have access to a US account from which to transfer funds, make your initial deposit in cash when applying in person. Some banks may also accept foreign checks, though these have a longer holding period before the funds become available.

Understand banking terms  

Familiarizing yourself with common banking terminology will help you better understand account features and avoid unexpected fees:

• Overdraft: When you spend more money than is available in your account. This results in fees unless you have overdraft protection.
• Overdraft protection: A service that prevents transactions from being declined if your account has insufficient funds, often by linking to a savings account or credit line.
• Direct deposit: When your employer electronically deposits your paycheck directly into your account.
• ACH transfer: An electronic, bank-to-bank money transfer processed through the Automated Clearing House network.
• Wire transfer: A same-day electronic transfer between banks, usually with higher fees than ACH transfers.
• Minimum balance requirement: The amount you need to maintain in your account to avoid monthly fees or to qualify for certain features.
• Interest rate: The percentage of your balance that the bank pays you for keeping money in your account (primarily for savings accounts).
• Annual Percentage Yield (APY): The effective annual rate of return, taking into account compounding interest.

Setting up for success after opening your account  

Setting up direct deposits and mobile banking  

Direct deposits give you faster access to your money compared to paper checks. They also eliminate the need to deposit checks physically while reducing the risk of lost or stolen checks. Verify if you qualify for direct deposit fee waivers on your account.

To set up direct deposit, you’ll need to provide your employer with:

• Your bank’s routing number
• Your account number
• A direct deposit form from your bank, if required

However, mobile banking puts account management at your fingertips. To set up:

• Download your bank’s official app from a trusted source 
• Create secure login credentials
• Enable biometric authentication if available
• Set up account alerts for low balances, large transactions, or suspicious activity

Managing accounts to avoid fees  

To avoid unnecessary fees:

• Monitor your balance regularly to avoid overdrafts.
• Understand your bank’s specific fee waiver requirements, such as maintaining a minimum balance or having a certain number of transactions each month.
• Set up low balance alerts to warn you before you risk dropping below minimum requirements.
• Link accounts for overdraft protection to avoid high overdraft fees.
• Use in-network ATMs to avoid ATM fees, or choose a bank that reimburses out-of-network ATM charges.
• Consider automatic transfers to savings to meet minimum balance requirements while building your emergency fund.
• Review your statements monthly to catch any errors or unexpected fees.

Additional financial products 

Once you’ve established your bank account, you might consider additional financial products to build your credit history and access other services. These products include:

• Secured credit cards: Require a security deposit and are often accessible to those with limited or no US credit history, making them a good starting point for building credit. 
• Credit builder loans: Help you establish a credit history and may be available through your bank or credit union.
• Personal loans: Beneficial if you want to finance larger purchases or consolidate debt. Terms and interest rates vary based on your credit history and relationship with the bank.
• Individual Retirement Accounts (IRAs): Provide tax advantages for long-term retirement savings.

FAQs 

Can I open a US bank account if I’m not a US citizen?

Yes, non-US citizens can open bank accounts in the United States. You’ll need to provide identification such as a passport and additional documents like your visa, Green Card, or other immigration permits. Some banks are more experienced with serving non-citizens, so research which institutions in your area are most immigrant-friendly.

What documents do I need to open a bank account in the US?

To open a bank account in the US, you need a government-issued photo ID such as a passport or driver’s license, proof of address, and your Social Security Number. Non-US citizens may be able to use an ITIN instead of an SSN. Some banks have programs specifically for immigrants that offer alternative documentation options.

How much money do I need to open a bank account?

Minimum opening deposits vary by bank and account type. Some accounts require no minimum deposit, while others may ask for $25 USD, $100 USD, or more to open. Premium accounts require higher initial deposits, often $1,000 USD or more. Online banks generally have lower minimum deposit requirements than traditional institutions.

Can I open a US bank account online?

Yes, many US banks allow you to open accounts entirely online. You’ll need to provide electronic versions of your identification documents and make your initial deposit through electronic transfer or by mailing a check. However, some accounts may still require in-person verification at a branch, particularly for non-US citizens.

How do I choose the best bank for my needs?

Consider factors like fee structures, minimum balance requirements, ATM access, branch locations, mobile banking capabilities, and customer service. Also, identify any specific needs you might have, such as international wire transfers or multilingual support.