American Bank Account
There may be many reasons that an individual would want to open up an American Bank Account while being a Citizen of a foreign nation.
Starting in 1964 with The Civil Rights Act, it has been possible for private companies and foreign nationals to open up a bank account in the United States. However, after the USA Patriot Act was enacted following the terrorist attacks of September 11th, 2001, it has been much harder for foreigners to open a bank account. Without an American bank account, it can be hard to do business in the U.S., it may be worth your time to understand how and whom can open an Account/
Why open an American bank account?
There are numerous benefits for individuals and businesses to open an American bank account that make it worth the difficulty. Unlike many other international bank accounts, there are rarely fees to use a checking account.
Additionally, the interest rates are usually more beneficial than other countries. As of June 2021, rates for a savings interest rate hover around .03% for most domestic banks , with online-only American banks yielding closer to .50% APR. There are also currency exchange rates that are beneficial when converting your home countries currency.
Purchasing items in America with a domestic savings account is perceived as way more legitimate than a foreign account. Lastly, the ease of access to features such as debit cards and ATM machines worldwide will make it so you are glad you have an American Bank account.
What will you need to Open an Account?
Any persons trying to open an account will need to verify their name, date of birth, physical address, and photo identification. Such forms of identity could be through; government-issued (or passport) from your home country, alien identification number from a green card, work visa, or student ID. While a social security number isn’t required to open a savings account in this country, it will reduce the questions from the bank. You may also file for an ITIN with the IRS if you are unable to get a Social Security number.
How to open the Account?
You will need to apply in person, there are essentially no ways for non-citizens to open an American bank account without going into a branch. In addition to either an ITIN or green card, you will need proof of an address in the United States.
In addition to the proper identification, tax number, and proof of address, you will also need a minimum deposit for the account. This amount ranges based on the bank you are choosing.
Types of Accounts
There are two main types of bank accounts in the United States, personal and corporate. Personal accounts are for reaching financial goals as an individual, like paying off personal debt or saving for a home. Corporate accounts are to keep track of business transactions and keep them separate from your personal property. Corporate accounts also allow you to authorize others to conduct business on behalf of the company.
International Accounts
If you do not qualify for an American domestic bank account, you may want to consider opening an international account. While you usually are required to keep a significant sum of money deposited, if you do not have a US address, this is an option.
At Nimrod Yaron & Co. we can consult with you regarding the process of opening an American bank account and other alternatives based on your specific situation.
