How to open a US bank account

Under the Customer Identification Program rules that implement the USA PATRIOT Act, a bank must collect your name, date of birth, address and an identification number, and must verify your identity. For a non-US person, the rules explicitly permit a passport number and country of issuance, or a similar government-issued document, in place of a taxpayer identification number.

So the requirement is documentary, not numeric. Banks that insist on an SSN are applying their own internal policy, which they are entitled to do — and which another bank down the street may not share.

What to bring: your passport, your visa or I-94 record, a second form of ID if you have one (a foreign driver's license works), proof of a US address such as a lease, utility bill or official letter, and your SSN or ITIN if you have one. An opening deposit is often required and can be small.

An ITIN — the IRS's Individual Taxpayer Identification Number for people ineligible for an SSN — is accepted far more widely than people expect and is worth obtaining if you will be here a while and cannot get an SSN.

Some banks will let you begin the process from abroad, particularly international banks with a US presence and banks with dedicated relocation desks. Ask before you fly.

Start with credit unions. They are member-owned nonprofits, generally have lower fees, better savings rates and more flexible newcomer policies than large banks, and deposits are insured to the same $250,000 through the NCUA. Many have membership open to anyone living in a given county.

Large national banks are the fallback and have the advantage of branches everywhere, which matters for cash deposits and cashier's checks. Their newcomer flexibility varies branch to branch — if one says no, try another branch or another bank before concluding the answer is no.

Online-only banks generally offer the best interest rates and no monthly fees, but many require an SSN for automated identity verification, so they are usually a second account rather than the first.

Ask explicitly: 'Do you have an account for customers without a Social Security number?' and 'Do you have international student or newcomer accounts?' The specific phrasing routes you to the staff who know the process.

Open a checking account for daily use and a savings account for anything you are not spending this month — the interest difference between a large bank's default savings rate and a high-yield account is substantial and costs nothing to capture.

Set up direct deposit immediately: it usually waives the monthly fee, and paper checks are still common and slow.

Monthly maintenance fees of $5 to $15 are common on standard checking accounts and are almost always waivable — by direct deposit, a minimum balance, a set number of card transactions, or student status. Ask what waives it before opening, and if nothing does, choose a different account.

Overdraft fees are the expensive ones, historically around $35 per transaction. You must opt in for debit card and ATM overdraft coverage — if you do not, transactions are simply declined at no cost, which is usually what you want. Many banks have now cut or eliminated these fees under regulatory pressure; ask what yours charges.

Out-of-network ATM fees are charged twice: by the ATM owner and by your bank. Use your own bank's network, take cash back at supermarket checkouts, or choose an account that reimburses ATM fees.

Foreign transaction fees of around 3 percent apply to card use abroad on most accounts, and some banks charge them on foreign-currency online purchases too. Cards without them exist and are worth having.

Wire transfers cost $15 to $50 domestically and more internationally, and the exchange rate margin is usually the bigger cost. Specialist transfer services are consistently cheaper for moving money in from abroad.

Confirm your deposits are insured: $250,000 per depositor, per insured bank, per ownership category, through the FDIC or NCUA. Check the FDIC's BankFind if you are unsure an institution is covered — some fintech apps are not banks themselves and the distinction has cost people money.

Paper checks persist in the US in a way they do not elsewhere — for rent, contractors and deposits. Your account comes with a routing number and account number, which together are what employers need for direct deposit and what utilities need for autopay.

Zelle moves money between US bank accounts in minutes and is built into most banking apps. Treat it like cash: transfers are effectively irreversible, which makes it the preferred tool of scammers demanding payment. Never send it to someone you have not met.

ACH transfers are the slower, free rails behind direct deposit and bill payment, typically settling in one to three business days.

Your bank account does not build credit — deposit accounts are not reported to credit bureaus. A secured credit card from the same institution is usually the cleanest first step, and many banks will approve one for existing customers who have no credit file.

Keep an eye on the account's insurance category if you hold large balances, and use account alerts for low balances and unusual transactions. Federal rules give you strong protection against unauthorized electronic transfers if you report promptly — protection that weakens the longer you wait.