Can a Non-Resident Open a Bank Account in the US?

Opening a bank account in the United States as a non-resident involves specific requirements and procedures. Financial institutions in the U.S. adhere to regulations designed to verify customer identities and ensure compliance. Obtaining a U.S. bank account can provide various benefits, including easier financial management for those with interests in the country.

Eligibility and Requirements for Non-Residents

A non-resident, in the context of US banking, refers to an individual who is not a U.S. citizen or a permanent resident and does not meet the IRS’s substantial presence test for tax purposes. These individuals can open bank accounts in the U.S. Banks are required to verify identities under the U.S. government’s customer identification program.

A primary form of identification, such as an unexpired passport, is required to prove your name and birth date. Some banks might request a secondary identification, such as a foreign driver’s license or a national ID card. Proving a physical U.S. address is also required. Acceptable documents often include a recent utility bill, a lease agreement, or an employer’s pay stub that clearly shows your name and current address.

Many banks require a Taxpayer Identification Number (TIN) for non-residents. For those without a Social Security Number (SSN), an Individual Taxpayer Identification Number (ITIN) serves this purpose. An ITIN is a nine-digit tax processing number issued by the IRS for individuals who have U.S. tax obligations but are not eligible for an SSN. While some banks may allow account opening without an ITIN initially, it often becomes necessary for interest-bearing accounts or for tax reporting purposes.

Relevant visa or immigration documents may also be required to confirm legal presence in the U.S. General eligibility criteria include being at least 18 years old and meeting any minimum deposit requirements set by the bank, which can range from $25 to $500 or more depending on the account type.

Opening the Account Process

After preparing documents, the next step is opening the account. Choosing a bank that has experience with non-resident accounts is a practical first consideration. Factors such as branch accessibility, online banking services, and fee structures should influence this decision. While many traditional U.S. banks require an in-person visit for non-residents, some institutions may offer remote or online application options.

For in-person applications, visiting a bank branch with your documents is the standard procedure. You will complete the bank’s application form, providing personal details, contact information, and your ITIN if applicable. The bank representative will verify your identification and address documents. For banks that offer remote or online applications, the process typically involves submitting scanned documents and undergoing identity verification, which might include video calls or mailing notarized copies of documents. Some online-only platforms also cater to non-residents, though personal accounts may still require a physical U.S. address.

After application and identity verification, an initial deposit is usually required to activate the account. This deposit can often be made through various methods, including credit or debit card, or a transfer from another financial institution. The minimum initial deposit can vary significantly between banks and account types. Following approval and initial funding, you will receive your debit card, account number, and access to online banking services, allowing you to manage your new U.S. bank account.

Account Management and Compliance

Maintaining a U.S. bank account as a non-resident involves ongoing responsibilities and specific compliance. It is important to regularly update your contact information with the bank to ensure you receive important notices and statements. Monitoring your transactions diligently helps in identifying any unauthorized activity or understanding account fees.

A compliance aspect for non-residents is related to the Foreign Account Tax Compliance Act (FATCA). This law requires foreign financial institutions to report accounts held by U.S. persons to the IRS, and U.S. banks must identify and report accounts held by non-resident aliens. To comply with FATCA and to avoid U.S. tax withholding on certain income, non-residents are generally required to submit IRS Form W-8BEN, known as the “Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals).” This form certifies your foreign status and can allow you to claim reduced tax withholding rates or exemptions, particularly if your home country has a tax treaty with the U.S. Without a valid W-8BEN, banks may be required to withhold tax, often at a 30% rate, on interest income or other U.S.-sourced payments.

Form W-8BEN is typically valid for three years, expiring on December 31st of the third calendar year after it is signed. Account holders are responsible for updating and resubmitting this form before its expiration to ensure continuous compliance and to prevent default withholding. Banks also implement transaction monitoring protocols, and non-residents might encounter scrutiny or limitations on large cash deposits or international transfers, which are measures taken to prevent illicit financial activities. Should the account no longer be needed, understanding the bank’s procedures for account closure, including any associated fees or final balance requirements, is advisable.