How to Open a US Bank Account

Opening an account at a US bank is a strategic step not only for those planning to live and work in the country but also for individuals seeking to conduct financial transactions through the U.S. banking system.

Moreover, for international entrepreneurs and freelancers, having such an account simplifies dealings with U.S.-based clients and eliminates the need to lose money on currency conversion fees. Responsible use of American banking products can help build a strong credit history, which is highly regarded when applying for loans and mortgages in other countries.

In this article, we will explore how to get a US bank account, the benefits it offers, and whether it is possible to complete the process remotely.

Types of US Bank Accounts

The U.S. banking system offers a variety of account types tailored to different purposes. They range from everyday expenses to long-term savings and investments. There is no strict division between account categories; within a single category, hybrid options may exist. For instance, a Money Market Account combines features of both checking and savings accounts.

Checking Account

A Checking Account is the primary bank account in the U.S., designed for managing everyday finances, including automatic bill payments, transfers, and online shopping. This type of account is not suitable for long-term savings, as funds in it typically do not generate interest. However, balances are insured by the Federal Deposit Insurance Corporation (FDIC) for amounts up to $250,000.

Key features:

• Accessibility. Funds in a checking account are easily accessible at any time. Money can be accessed through debit cards, ATMs, checks, and online banking.
• Interest rates. Most checking accounts do not accrue interest on balances. Banks that offer interest-bearing checking accounts usually require a high average balance ($500—$5000).
• Fees. Banks typically charge $5—$15 per month for account maintenance. However, fees can often be waived if conditions are met, such as maintaining a minimum monthly balance or receiving regular direct deposits. Free withdrawals are available only at the bank’s own ATMs. Using third-party ATMs incurs a fee (usually $2—$5). Banks frequently charge overdraft penalties (usually $35 per transaction) if you spend more than your available balance.

Savings Account

A Savings Account is designed for storing and accumulating funds while earning interest. US bank savings account interest rates, typically rangе from 0.01% to 4% annually, depending on the bank and account terms. Previously, U.S. savings accounts were subject to Regulation D, which limited the number of transactions (transfers or withdrawals) to six per month. Although this regulation has been officially repealed, some banks continue to follow this rule voluntarily.

Key features:

• Fees. Most banks do not charge fees on accounts maintaining a minimum balance of $300—$500.
• Access to funds. Funds can be withdrawn through transfers, mobile banking, and ATMs. However, compared to checking accounts, access to savings account funds is more limited, often by the number of free transactions allowed per month.
• Insurance. Funds in savings accounts are also insured by the Federal Deposit Insurance Corporation (FDIC) for amounts up to $250,000.

The primary difference between a savings account and a regular checking account lies in the fees for low balances and penalties for exceeding transaction limits. Banks argue that these rules encourage the use of savings accounts for accumulation rather than daily transactions.

Types of savings accounts:

• Regular savings account. These accounts offer low interest rates but high accessibility.
• High-yield savings account. Typically available at online banks and, less frequently, at traditional banks. These accounts provide higher interest rates (up to 24% annually) but limit free transactions to as few as six per month (e.g., Ally Bank).
• Children’s savings account. A savings account for kids is a special banking product designed to help children learn the basics of financial literacy and teach them how to manage money. These accounts are often used by parents who want to instill skills like planning, saving, and taking responsibility for personal finances in their children. Such accounts typically come with no fees and have lower minimum balance requirements. For example, Chase Bank offers the «Chase First Banking» account for children aged 6 to 17. This account requires no minimum opening deposit and charges no monthly maintenance fees.

Money Market Account

A Money Market Account (MMA) is a hybrid type of bank account that combines features of both checking and savings accounts. These accounts typically offer higher interest rates and provide limited access to funds via checks and debit cards.

Key Features:

• Interest Rates. MMAs generally offer higher interest rates compared to standard savings accounts. Depending on market conditions and the bank, rates can reach 2–4%, although the current average rate is approximately 0.66%.
• Accessibility. Access to funds is limited (typically up to six free transactions per month), but specific terms depend on the bank’s policies.
• Minimum Balance. MMAs often require maintaining a minimum balance (ranging from $500 to $5000). While not always mandatory, meeting this requirement is often necessary to retain benefits such as higher interest rates.
• Insurance. Funds in Money Market Accounts are insured by the Federal Deposit Insurance Corporation (FDIC) for amounts up to $250,000.

Brokerage Account

A Brokerage Account is used for buying, selling, and holding various investment assets such as stocks, bonds, exchange-traded funds (ETFs), mutual funds, and other instruments. These accounts are typically opened through brokerage firms that provide access to capital markets.

Key features:

• Wide range of assets. A brokerage account allows you to invest in stocks, bonds, ETFs, mutual funds, options, futures, and cryptocurrencies (available at some brokerages).
• Flexibility. There are no restrictions on the frequency of transactions or access to funds. You can invest, withdraw money, or purchase new assets at any time.
• Risk. Unlike bank accounts, funds in brokerage accounts are not insured by the FDIC. Instead, protection is provided by the Securities Investor Protection Corporation (SIPC) up to $500,000 (including up to $250,000 in cash). This protection applies only in cases of broker bankruptcy and does not cover market losses.
• Fees. Many brokers offer accounts with zero or minimal fees for trading stocks and ETFs. However, they may charge fees for account management, purchasing mutual funds, or using margin trading.
• Tax obligations. Investment income, such as dividends or capital gains, is subject to taxation.

Not all brokers provide the same set of investment tools. For example, platforms like Robinhood offer access to stocks, ETFs, and cryptocurrencies but do not support bond or mutual fund trading. To trade more complex instruments, such as options or engage in margin trading, broker approval is required. This often involves signing additional agreements and maintaining a minimum account balance (typically $2000 for margin trading).

Individual Retirement Account

Individual Retirement Accounts (IRAs) are designed for long-term retirement savings. Contributions made with post-tax income are tax-exempt, while other US bank account types allow for pre-tax contributions, deferring taxes until funds are withdrawn. Typically, IRAs are available to non-residents only under conditions of long-term legal residency and significant employment history in the U.S.

Key features:

• Contribution limits. For 2024, the maximum annual contribution is $7000 for individuals under 50 years old and $8000 for those 50 and older, including catch-up contributions. The catch-up contribution category applies to individuals over the age of 50 who have insufficient retirement savings or significant gaps (a year or more) in making retirement contributions.
• Withdrawal restrictions. Funds can be withdrawn without penalties after age 59.5. Early withdrawals are subject to a 10% penalty unless for specific purposes, such as purchasing a first home or covering educational expenses.
• Investment opportunities. IRA funds can be invested in stocks, bonds, ETFs, mutual funds, and even real estate through specialized accounts.
• Insurance. IRAs are protected by the Securities Investor Protection Corporation (SIPC) up to $500,000, including $250,000 for cash balances.

Types of IRAs:

• Traditional IRA. Contributions are tax-deferred, meaning taxes are paid upon withdrawal of the total savings.
• Roth IRA. Contributions are taxed upfront, but earnings and withdrawals are tax-free.
• SEP IRA (Simplified Employee Pension IRA). Designed for small business owners and self-employed individuals. Allows contributions on behalf of employees or oneself (up to 25% of income or $66,000 in 2024).
• SIMPLE IRA (Savings Incentive Match Plan for Employees IRA). Created for small companies with up to 100 employees. Offers higher contribution limits than a Traditional IRA ($15,500 in 2024).

Business Account

Opening a US business bank account for non-residents is vital for conducting commercial activities. Having a separate account for business helps avoid mixing personal and corporate funds and is specifically designed to manage the finances of companies, small businesses, or self-employed entrepreneurs.

Business US bank account in details:

• Minimum balance. Most US bank business accounts require maintaining a certain minimum balance to qualify for benefits such as waived monthly fees or higher interest rates.
• Fees. Depending on the bank, fees may include monthly service charges, fees for exceeding transaction limits, or charges for depositing cash beyond a set limit.
• Transaction limits. Banks often impose limits on the number of free transactions, such as 100 per month.
• Online banking capabilities. A standout feature of business accounts is the ability to integrate with accounting software, simplifying financial management.

There are many individual types of business accounts in banks. For example, Bank of America helps open business accounts for different business needs: the Business Advantage Fundamentals™ Banking account, which is ideal for small businesses looking for a straightforward, low-cost option, and the Business Advantage Relationship Banking account, designed for businesses that need additional features such as lower fees and more personalized banking services.

Virtual Bank Account

A virtual bank account is a tool that allows you to open a bank account online in the United States. These accounts function similarly to traditional ones, offering payment details (such as IBAN or ACH). They are particularly popular among freelancers, entrepreneurs, and individuals handling international transactions. There are two primary ways to open a virtual bank account in the U.S.:

Opening an account on-site in the U.S.:

• Major banks like Chase Bank, Bank of America, and Wells Fargo offer online banking features similar to those of virtual accounts. Applicants are required to provide:
• Passport.
• Visa or proof of legal status.
• U.S. address (in some cases, the address of a friend or rental property may suffice).
• ITIN (Individual Taxpayer Identification Number) or SSN (Social Security Number).

While opening a US bank account for expats, non-residents may need to provide additional documents, such as business registration certificates, if the account is for commercial purposes.

Open a US bank account from abroad:
Many services provide opportunities to open international bank accounts online for free via platforms like Wise (formerly TransferWise), Payoneer, and Revolut. While these accounts may lack traditional banking tools like checkbooks, they provide access to:

• Debit cards.
• Virtual accounts.
• Credit and deposit features.

U.S. Banks to Open an Account

Opening a bank account in the U.S. begins with preparation and understanding which type of account best suits your needs: checking, savings, business, or investment. Once you’ve determined your requirements, the next step is researching banks to find the best options.

Criteria for choosing a bank:

• Availability for non-residents. Not all banks allow open bank accounts for foreigners in the USA. Some require a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN). It’s advisable to choose banks experienced in working with international clients and allowing account openings for non-residents.
• Document requirements. Banks’ documentation requirements can vary slightly. Some may require specific documents or permits from the state where the branch is located. Selecting a bank with straightforward and easy-to-meet requirements is recommended.
• Service conditions. Many banks require maintaining a minimum balance to avoid monthly fees or retain bonuses. If you plan to hold significant amounts in your account, inquire about options to earn interest on your balance.
• Ease of use. A user-friendly and functional online banking platform and 24/7 customer support are valuable features to consider.
• Additional services. It’s wise to evaluate the additional services offered by banks. Choosing a bank with a comprehensive service package can save you the trouble of seeking other institutions for supplementary services.

Top U.S. banks:

• Bank of America. One of the largest banks in the U.S., offering an extensive branch network and the ability to open a bank account in the USA for foreigners. 
• Chase bank. The largest bank in the U.S., with an extensive ATM network and no-fee services at its ATMs.
• Wells fargo. One of the oldest U.S. banks, popular among small businesses. The $10 monthly fee can be waived depending on the service package.
• Citibank. A global bank with strong international transfer capabilities and access to multi-currency accounts, ideal for international transactions.
• Capital one. A digital-first bank with no monthly fees for checking accounts.
• Ally bank (Online Bank). A fully digital bank with no branches, focusing on low fees.
• TD bank. A regional bank with a strong presence on the East Coast, particularly convenient for Canadian residents due to its simplified account setup process.
• PNC bank. A regional bank emphasizing personalized customer service.
• International banks (for foreign bank accounts of European clients). Specializing in multi-currency accounts and international transfers, with options to open U.S. dollar accounts in European branches.

US Personal Bank Accounts

You can open a bank account in the USA either online or by visiting a branch in person. Most American banks require in-person visits to comply with the Customer Identification Program (CIP) and Know Your Customer (KYC) regulations, which aim to prevent money laundering and terrorism financing. Even banks that offer online registration often require personal attendance at the final stages of the process.

Required documents for In-person account opening:

• Passport.
• U.S. visa or residence permit.
• Proof of residential address in the U.S.
• Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).

Required documents for open bank account online in the USA:

• Passport.
• Proof of residential address.
• SSN or ITIN.

Opening a no SSN bank account is significantly more challenging, as it is often mandatory, along with proof of a U.S. address and ITIN. It is essential to check the specific requirements and eligibility for non-residents with your chosen bank.

If traditional banks do not meet your needs, consider online banks or financial platforms that work with non-residents. These options often have more flexible requirements and may be better suited for international clients.

Opening Business Accounts in US Bank

Opening a business account in a major U.S. bank typically requires maintaining a minimum balance of $500 to $5000 to avoid monthly fees. Online banks often waive such requirements to attract a broader audience. However, for non-residents, the account opening process can take longer.

Main requirements:

• Legal company registration. Operating a business in the U.S. requires registering a legal entity, such as an LLC (Limited Liability Company), C-corp, S-corp, or Sole Proprietorship. The bank will require the following documents:
  • Certificate of formation/incorporation. Proof of the company’s legal registration.
  • Operating agreement. Required for LLCs, detailing the business’s management and ownership structure, if applicable.
• Employer Identification Number (EIN). The Employer Identification Number (EIN) is issued by the U.S. Internal Revenue Service (IRS) and is required by the bank to manage tax reporting for the account. EINs can be obtained for free via the IRS website or through paid third-party services for non-residents.
• Identification documents. A passport or another photo ID is required. U.S. residents can also use a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).
• Address verification. Proof of address can be provided through a lease agreement for an office or a utility bill in the company’s name.
• Certificate of good standing. This document confirms that the company is in compliance with regulations and operating in «good standing.»
• Information on owners and managers. Banks may request details about the company’s beneficial owners (holding more than 25% ownership) and management personnel.

After gathering the required documents, you can open an American bank account online. Contact the bank representative or submit an online application with digital copies of all necessary documents. The bank will review the documents within 1–10 business days and once the documents are approved, the client receives account details and access.

Opening an Investment Bank Account

Opening an investment account in the U.S. allows individuals to invest in stocks, bonds, and other financial instruments. This type of account, also known as a brokerage account, is widely used by traders and investors seeking to profit from market opportunities.

Required documents:

• Identification documents. A valid passport and an additional form of identification, such as a driver’s license.
• Tax identification number. Social Security Number (SSN) for U.S. citizens and residents and individual Taxpayer Identification Number (ITIN) for non-residents.
• Proof of address. A utility bill or a rental agreement can be used to confirm residency.
• Financial information. Details about income and sources of funds and information on current investments and assets.

Some brokers cater to international clients by offering online services. In such cases, additional documentation may be required, including proof of taxpayer status in the client’s country of residence and details about their visa or permission to stay in the United States. This ensures compliance with both U.S. and international tax regulations, as well as adherence to residency requirements.

How to Open a Bank Account in the USA for Non-Residents

Non-residents have two primary options for opening a U.S. bank account. The first is to visit the U.S. in person and apply at a bank branch. The second is to open the account remotely, which saves on visa costs but limits the range of available financial services in the U.S. due to strict regulations aimed at preventing money laundering through American banks.

However, traditional banks now face competition from online banks. These digital institutions do not typically require a Social Security Number (SSN) to open an account, but they also lack extensive ATM networks for fee-free cash withdrawals. The specifics vary depending on the bank.

Required documents for US bank account for non-residents:

• Passport. Required for identity verification.
• Visa or residence permit. Needed to confirm legal status in the U.S.
• Additional photo ID. A driver’s license or national ID card is usually acceptable.
• Proof of address. Utility bills, rental agreements, or bank statements showing the applicant’s address are required.
• SSN or ITIN. Some banks mandate a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN).

Certain online banks and platforms, such as Chime, Wise, or Revolut, work with non-residents and offer remote account setup. However, these accounts may have functional limitations (e.g., for electronic payments only) and often require an ITIN or proof of a U.S. address, even if temporary (such as a friend’s address). A trusted U.S. resident partner can open an account and provide you with access. While practical, this approach may have legal and logistical risks.

Remote account opening without U.S. presence:

• International banks. Major international banks, such as HSBC, Citibank, or Standard Chartered, allow clients to open U.S. accounts before arriving in the country. This is particularly convenient for existing clients in other countries. For example, HSBC’s Global View service enables clients to open a U.S. account remotely through a local branch in their home country.
• Online banks. Fully digital banks like Wise, Revolut, or Chime enable account opening without being in the U.S. However, these accounts may come with restrictions and often require proof of a U.S. address or an ITIN.

Open up a US bank account in person:

• Traditional banks. Most traditional U.S. banks, such as Bank of America, Chase, and Wells Fargo, require applicants to be physically present at a branch for identity and document verification.
• Business accounts. For opening business accounts for foreign companies, banks typically require a meeting with a company representative to verify documents and authorize account access.

Problems with Opening an American Bank Account

Opening a bank account in the U.S. as a non-resident comes with several obstacles, the most significant being citizenship restrictions. Banks do not provide services to individuals from countries on U.S. sanction lists, such as North Korea, Iran, Syria, Cuba, Russia, Belarus, Venezuela, or Myanmar. Citizens of the mentioned countries face restrictions on entering the United States and accessing banking services within the country due to the Patriot Act, the Office of Foreign Assets Control (OFAC), and U.S. sanctions policy. OFAC sanctions lists are regularly updated, and non-residents may encounter account closures or denials when attempting to open accounts.

Most major banks, such as Chase, Bank of America, and Wells Fargo, require an in-person visit to open a USA bank account. This is due to their strict Know Your Customer (KYC) protocols and mandatory identity verification processes. These systems aim to prevent suspicious clients or sources of income from entering the U.S. financial market.

Online banks, including Wise, Mercury, and Payoneer, offer options for non-residents to open U.S. accounts. However, access to online banking services may be limited, and without a Social Security Number (SSN) or U.S. credit history, obtaining credit cards or loans is nearly impossible.

Banks conduct additional screenings for non-residents, which include:

• Verifying income sources.
• Evaluating the applicant’s country of origin.
• Ensuring compliance with sanctions lists.

Under U.S. laws such as the Bank Secrecy Act, financial institutions are obligated to thoroughly vet foreign clients, particularly for ties to terrorist organizations or military funding. This results in extended application review times, typically adding one to two weeks to the process.