How Non-US Citizens Can Open A Bank Account

For the vast majority of consumers, a bank account is one of the basic tools for financial security. But accessing something as essential as a checking or savings account can be a challenge when you don’t have a Social Security number.

Without a bank account, non-U.S. citizens face serious difficulties managing their finances — from figuring out how to keep their money safe to avoiding steep fees from check-cashing services. According to the 2023 FDIC National Survey of Unbanked and Underbanked Households, 4.2 percent of U.S. households (approximately 5.6 million) were unbanked, and non-citizen immigrant status is one of the factors most strongly associated with being unbanked.

Fortunately, it is possible for non-U.S. citizens to open a checking or savings account, though it involves more legwork and documentation than it does for U.S. citizens. Here’s what you need to know.

Required documents to open a U.S. bank account

To open an account, a bank or credit union needs to know it’s really you. It’s part of the U.S. government’s customer identification program, which sets the standards for how financial institutions should confirm their customers’ identities.

Verifying your identity will be different depending on the bank or credit union, but it typically involves providing the following:

“One of the biggest hurdles I see for non-U.S. citizens is the assumption that you can handle everything online. Most banks’ online account-opening systems aren’t set up to process applications without a Social Security number, so you’ll almost certainly need to visit a branch in person. Plan to bring multiple forms of ID (your passport plus one additional document) and call ahead to confirm what the specific branch accepts.”

— Hanna Horvath, Managing Editor, Deposits at Bankrate

Alternative identification options

For a nonresident or noncitizen without a Social Security number, there are several alternative forms of identification that banks may accept. Often, you’ll need to provide one or more of the following:

• A passport number and country of issuance
• An Alien Registration Number
• Visa or other U.S. immigration documents
• Driver’s license with photo
• School ID with photo
• U.S. Employment Authorization Card with photo

How to get an ITIN

The IRS provides an Individual Taxpayer Identification Number (ITIN) to people who need a U.S. taxpayer ID but don’t have, or can’t get, a Social Security number from the Social Security Administration. This nine-digit number helps individuals meet their U.S. tax obligations. An ITIN is provided regardless of immigration status, as U.S. tax filing or reporting may be necessary for both residents and nonresidents.

An ITIN does not authorize someone to work in the U.S. and is used solely for federal tax reporting purposes. Getting an ITIN requires completion of Form W-7, which must generally be submitted along with a federal income tax return.

There are three ways to apply:

Option 1: Apply by mail

Complete Form W-7 and mail it with your tax return and original (or certified copies of) identity documents to:

Internal Revenue Service ITIN Operation P.O. Box 149342 Austin, TX 78714-9342

Option 2: Visit an IRS Taxpayer Assistance Center (TAC)

You can apply in person at a TAC, which is a free service. Staff can authenticate your identity documents and return them to you immediately. Appointments are required and can be scheduled through the IRS website.

Option 3: Use a Certifying Acceptance Agent (CAA)

CAAs are individuals or organizations authorized by the IRS to verify your identity documents on its behalf. This option allows you to avoid mailing original documents like your passport. CAAs may charge a fee for their services. Free CAA services are available at select Volunteer Income Tax Assistance (VITA) sites.

Banks and credit unions that accept alternative IDs

At first glance, many bank websites seem to indicate that alternative IDs are not accepted. Though many of the biggest banks list a Social Security number as a requirement on their websites, that may only apply to online account opening. In-branch processes are often more flexible.

Several major banks accept an ITIN instead of a Social Security number when you schedule an in-branch appointment:

Some credit unions also accept alternative IDs. For example, DC Credit Union in Washington offers a SAFE Checking Account specifically designed for non-U.S. citizens. Because the account earns no interest, it doesn’t require a tax ID number—only a foreign ID.

Bank document requirements and identification policies vary. Some community banks, like Integrity Bank & Trust (headquartered in Monument, Colorado), don’t require an SSN or ITIN to open an account at all. “We require proof of their U.S. address and the application if the individual has applied for an SSN or ITIN. Be prepared to explain the expected account activity,” says Susan Tillotson, retail development specialist at Integrity Bank & Trust.

Digital and fintech alternatives

If you’re having difficulty opening a traditional bank account, several fintech companies offer accounts that may be easier to access for non-U.S. citizens. Services like Wise (formerly TransferWise) and Revolut offer multi-currency accounts that can be opened with a passport and don’t require an SSN. However, these accounts may not carry FDIC insurance, which is an important consideration when deciding where to keep your money.

Regardless of which type of account you choose, it’s important to compare fees and minimum balance requirements. Read Bankrate’s guide to avoiding bank fees to make sure you aren’t paying too much to stash and manage your cash.

The benefits of opening a bank account

Filling out forms, going to an agent’s office and waiting for nearly two months may sound like a hassle, but the benefits of a bank account outweigh those troubles.

Some ways that bank accounts help consumers manage their money include:

• Lower fees: Without a checking account, cashing checks has to be done through check-cashing services or prepaid debit cards, which often charge high fees.
• Extra protection: Storing money in a bank account is much safer than keeping it in a drawer. If a bank is insured by the Federal Deposit Insurance Corp., or a credit union is insured by the National Credit Union Administration (NCUA), that means they offer federal deposit insurance up to $250,000 per depositor, per insured bank, per ownership category.
• Access to direct deposit: A checking account provides a convenient way to receive payments.
• Saving for the future: With a high-yield savings account, consumers can practice good habits for building up their wealth over time and staying prepared for emergencies. Some savings accounts allow for six withdrawals each month under Regulation D (in April 2020, the Federal Reserve removed the limit to provide consumers increased access to funds, but many banks today still enforce Reg D).
• Credit-building opportunities: Establishing a good banking history can provide a gateway to larger life goals such as buying a car or owning a home.

Bottom line

The banking industry’s traditional identification requirements may seem like a barrier to non-U.S. citizens when trying to open a bank account, but numerous banks and credit unions accept alternative forms of ID to make it easier. Though obtaining an ITIN does mean some extra work, the ability to open a checking account and savings account — and in some cases, apply for a home loan — can make a meaningful difference in achieving financial security.