Why should I open a bank account in the USA?
Even if you can access your local bank in your home country from abroad, opening a bank account in USA is still advised. Opening a bank account in USA has many benefits, including using it to pay for daily expenses like rent, tuition, and other bills without incurring any additional fees.
Carrying large amounts of cash might be risky, so opening a bank account in America can keep your money secure and accessible. The Paychecks from paid internships and off-campus jobs will be sent straight into your bank account in USA if you additionally apply for those positions. Let’s say you use a debit or credit card from your nation. As most supermarkets, convenience stores, and other commercial establishments accept cards, making them the dominant method of utilizing money in that situation, you will lose a significant amount of money in the form of currency conversion fees.
Can a non-resident open a bank account in the USA?
To open a bank account in USA, many banks ask for evidence of address and a Social Security number. Because you will not have these as a non-resident, you must look for alternatives.
Typically, the bank will want your Social Security number. Fortunately, there is a solution known as the ITIN. You can open a bank account with an Individual Taxpayer Identification Number (ITIN). Fill out the IRS Form W-7, IRS Application for Individual Taxpayer Identification Number, to acquire one. Creating a traditional bank account can be difficult for non-residents. Various choices, such as a multi-currency account, an overseas account, and a correspondent account, are available. These options may help you open an account in your home country.
How to apply for ITIN?
To apply for the Individual Taxpayer Identification Number, you just have to mail your W-7, identity proof, foreign status documents and tax return to the IRS. Make sure to include original documentation or certified copies from the issuing agency that prove your identity and foreign status.
Types of personal bank accounts in the USA
Checking and savings accounts are the two main categories of bank accounts in USA.
1. Checking Account
A checking account is a form of student bank account that functions like a dream, making it easy to manage your everyday expenses and pay your payments on time each month. It gives you a debit card to take out cash whenever you want. Always enquire about the required monthly payments and maintenance costs because they vary from account to account. Since it is simpler to control spending with this account, most students choose it.
2. Savings Account
A savings account is mainly utilized for long-term, high-interest deposits. This kind of account is advantageous for students who have significant financial assets. Most students first move their money to a savings account before moving it to a checking account. Don’t forget to inquire about service charges and minimum balances.
Documents required to open a bank account in the USA
What you’ll need to open a bank account in USA is
1. Include full name, residential address, residential phone, and campus phone
2. A letterhead bearing a college or university address
3. The second form of identification and your passport
4. A letter from your university certifying your enrollment
Documents like the I-94 card, I-20, DS-2019, and I-797 approval notification are required by some banks. It is recommended that international students establish student bank accounts the old-fashioned way by scheduling a face-to-face appointment. Although many banks will advertise that you can open a student bank account online, it is always preferable to do so in person. Connecting with a bank employee will help you better understand your financial status. Here is a complete guide to international student bank accounts!
Step-by-step guide on how to open a bank account in the USA
Once you’ve determined which bank is best for you, it’s time to open a bank account in USA. Opening an account can take anywhere from a few minutes to an hour, so prepare accordingly.
1. Gather all the paperwork you’ll need to bring.
2. Check the bank’s website for any additional goods they may require.
3. You may also be required to bring cash, ranging from $25 to $100, to deposit into the new account.
4. You must bring two forms of identification:
The first form of identification must be a driver’s license or passport issued in the United States. Foreign passports and Consular IDs, such as the Matricula Consular card, are accepted by some banks and credit unions.
A Social Security card, a birth certificate, or a bill containing your name and address can be used as the second form of identification.
5. At a traditional bank, a bank representative will sit with you and assist you in filling out any paperwork and answering any questions you may have. Online banks, however, still require the same information as traditional banks.
6. When you obtain your card in the mail, carefully read the instructions.
7. You will be asked to dial a number to activate the card or set up your PIN.
8. Keep an eye on your account to see your available money and avoid being charged any unexpected fees.