Open a US Bank Account Online (for Non-Residents)

About Author: Hi, I’m Quinn Askeland. In 2014, I started Transumo after experiencing expensive, slow, and frustrating international money transfers and payments through banks. Once I discovered how to manage my own international currencies much better, I became driven to help others improve their transfers and payments. Fortunately, today, there are many excellent options. See My Full Bio.

Opening a US bank account online can open many doors especially if you’re a non-resident, have just arrived, or simply want to store USD. The challenge is opening accounts with traditional banks usually requires that you are an American citizen or resident. Fortunately, there are some great options these days.

Opening a US bank account with a traditional bank can be frustrating because of the requirements.

Fortunately:

In order to open a US account online you don’t need to be a resident, a citizen, or even be in the country.

But each has advantages and limitations.

In this post, I will point out a couple of excellent options and let you decide which may be better for you.

Disclosure: This post contains affiliate links and savings on transfers if you use some of the links! For more information, see my disclosures here.

Online Vs Traditional Accounts

Traditional or high street banks in the US offer a number of banking options like savings, bill payments, mortgages, loans, etc., and the money you hold with them is protected up to a certain amount (usually $250,000) by the Federal Deposit Insurance Corporation (FDIC).

Most high street banks require you to have a good credit score and a social security number (SSN) to open an account. 

However, some high street banks like Wells Fargo, Bank of America, Chase, and CitiBank offer bank accounts to immigrants, international students, and new arrivals even if you don’t have a social security number (but you need to be a US citizen or permanent resident to qualify for a social security number in the US).

These banks have both physical branches and mobile apps and let you send and receive money both locally and internationally (though this may be quite expensive). 

Non-US citizens and new arrivals face a lot of challenges in managing their finances, building a credit score, and avoiding high fees for check cashing services. 

However, online services like Wise (review) and Sable (review) are changing the game for immigrants and international students in the US.

It’s very easy to get an account with either of them (no credit checks, no social security number*), you can get both debit and prepaid credit cards, and even send money abroad affordably.

They don’t have branches and everything happens online. 

And while they don’t have a banking license in the US, they’re regulated financial institutions in the US.

More on them below – Opening a Digital Account Online

*For Sable you will need to give them your SSN if you are a US citizen or once you get one. For Wise no SSN is required if you get their account out of the US.

Types of Bank Accounts in the US (and why you might want them)

Here are the most common types of bank accounts in the US:

• Checking Accounts
• Saving Accounts
• Money Market Accounts

Checking Accounts

Checking accounts are for your day-to-day spending, receiving your wages, setting up direct debits, etc. 

They come with a debit card so you can have easy access to your money at all times (and often for free if you withdraw from an ATM in your bank’s network). Checking accounts may be free or paid – usually the fees are waived for students or if you receive a direct deposit every month or maintain a minimum balance in the account. 

And while you do earn some interest on the money you hold, it’s not much.

Savings Accounts

Savings accounts offer a higher rate of interest compared to Checking accounts, and usually don’t come with a checkbook or debit card. In fact, federal laws in the US limit the number of withdrawals you can make from a savings account every month. Some banks also charge users for withdrawing above a certain amount or the stipulated frequency (usually six withdrawals per month).

Money Market Accounts

Money Market Accounts offer the best of both worlds bundling both checking and savings account features into a single deposit account. This means you can earn interest on the balance while also being able to spend the money in your account with a debit card or checkbook. 

However, these accounts are also subjected to federal regulations, which means withdrawing money more than six times per month can attract fees. 

Student in the US or Immigrant? 

Local credit unions in your community or on campus could also offer ways to open bank accounts.

Credit unions in the US offer the same services as banks (checking and savings accounts, loans, mortgages, etc.) but tend to have better rates – think higher interest rate for savings, lower interest for loans, etc. 

They’re non-profit organizations that are co-owned by the people who use their financial products. Credit unions invest their profit to make their products better, while banks give these profits to shareholders. 

Some credit unions – like the DC credit union – offer checking accounts to non-US citizens without a social security number or Individual Taxpayer Identification Number (ITIN).

And yes, credit unions are regulated – the money you hold is protected by the National Credit Union Administration (NCUA) and you get a deposit guarantee.

Documents Needed for Traditional Banks

Each bank has different requirements for the type of ID they need to open a bank account. 

Usually these are:

• Photo ID proof like a driver’s license or passport
• US address proof like rental agreement, utility bills, etc.
• Social security number for US-citizens or 
• Individual Taxpayer Identification Number (ITIN) for non-residents

ITINs are available to certain resident and nonresident immigrants, their spouses and dependents who are not eligible for a social security number. You can get an ITIN by filling out a W-7 form on the IRS website. 

US banks also divide ID proof into two categories: Primary and Secondary. For example, Bank of America needs the following as primary and secondary ID proof for non-residents applying for a bank account.

Primary (Only one of the following is required)

• Foreign passport with or without passport visa (with photo)
• U.S. Non Immigrant visa and Border Crossing Card-DSP-150 (with photo)
• Mexican, Guatemalan, Dominican, Colombian Consular ID (with photo)
• Canadian Citizenship Certificate Card (with photo)

Secondary (Only one of the following is required)

• Foreign driver’s license with photo or U.S. driver’s license
• U.S. issued employment/work ID card or badge
• Debit or major credit card with Visa® or Mastercard® logo
• Major retail credit card from a nationally well-known company
• U.S. Department of State Diplomat ID
• Mexican Voter Registration Card (with photo)

Bottom Line

If you need to open a bank account online for receiving USD, we recommend an online account like Wise or Sable.

However neither are real banks and while you can use them like you would a normal bank account they have limitations.  

A lot depends on your needs.

However if you are moving to the US or have just arrived, building your credit score with a Sable account and then eventually opening a checking and savings account with a retail bank seems is a great way to quickly integrate with the US financial system.

On the other hand if you purely want an online account for receiving USD and don’t have things like a Social Security Number (SSN), US address or US ID Wise could well be a great way to go.

Happy Money!

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