Opening a US Bank Account Remotely for Non-Residents
Opening a US bank account can unlock numerous opportunities and provide a range of financial benefits for non-residents. Whether it’s for business expansion, making international transactions more seamless, or gaining access to US-based services, having a US bank account can simplify global operations. From easier fund transfers to better currency conversion rates, the advantages of holding an account in one of the world's largest financial markets are substantial. However, opening a US bank account as a non-resident comes with its unique set of challenges and procedures that differ from those faced by US residents. Understanding these differences and knowing what to expect can make the process much more manageable and straightforward.
Why a non-resident may need a US bank account
Before diving into the steps to open a US bank account, it's important to understand why you might need one. Here are some of the main reasons non-residents seek a US bank account:
- E-commerce payments
If you work in e-commerce and have customers in the US, having a US bank account makes it easier to accept payments in dollars. Local transactions are faster and cheaper compared to international transfers.
- Purchasing goods and services
If you regularly buy goods or services in the US, a local bank account can save you time and money. While SWIFT payments are possible, they are often slow and come with high fees.
- Frequent travel to the US
If you're traveling to the US on a tourist or business visa, a US bank account can be practical. Although you can use your home country's debit card, withdrawing money from ATMs or making purchases can lead to high fees.
- Currency stability and savings
If your home country has an unstable currency, you might prefer to hold some of your savings in US dollars. A US bank account can provide a secure place for these funds, with deposit insurance adding an extra layer of protection.
The United States as a banking jurisdiction
Before looking into specific banks that cater to non-residents, it's essential to understand the pros and cons of the US banking system. Here are some key advantages:
- High reputation
The US is widely recognized as a reputable banking jurisdiction. Large payments from US accounts are so common that banks rarely question them. This ease of financial transactions makes dealing with offshore jurisdictions like Panama or Cyprus much smoother.
- No automatic exchange of information
Unlike many countries, the US has not adopted the Common Reporting Standard (CRS) for automatically exchanging financial information. This means personal banking details aren't automatically shared with foreign governments or organizations, offering an added layer of privacy.
- Deposit insurance
The US has a strong deposit insurance system through the FDIC, covering deposits up to $250,000 per account. This insurance extends to non-residents, ensuring that your money is protected in the event of a bank failure.
These factors make the US an attractive option for non-residents looking to open a bank account.
Unique aspects of US banking for non-residents
Banking is central to financial life in the US, with nearly 95% of American households having a bank account. For US residents, opening an account is straightforward—just provide a government ID and proof of address. But for non-residents, the situation is different.
While the Civil Rights Act of 1964 allows US banks to serve foreign individuals, stricter regulations came into play after September 11, 2001. The USA Patriot Act introduced tougher identity verification rules for foreigners looking to open a US bank account. Title III of the Act, focused on anti-money laundering and anti-terrorism, added more complexities for non-residents.
Understanding these nuances is crucial for non-residents navigating the US banking system.
Extra requirements for non-residents
Opening a US bank account as a non-resident requires more documentation compared to a resident. Here’s what you might need:
- SSN or ITIN
While non-residents typically don’t have a Social Security Number, obtaining an Individual Tax Identification Number (ITIN) is possible, even from outside the US.
- Identification
A passport or another valid ID card is required.
- US Address & Proof
You must provide a US address, usually verified through a utility bill or similar document.
- Minimum deposit & US phone number
Some banks may also require a minimum deposit or a US phone number for online banking access.
Even with an ITIN, the process isn't straightforward. Banks need to meet strict KYC (Know Your Customer) and AML (Anti-Money Laundering) requirements, which makes them cautious. Due to these regulations, only a limited number of banks are willing to work with non-residents.
Bank requirements vary by location
While federal laws govern banking regulations for non-residents, how they are applied can differ greatly based on location. Requirements for opening an account can vary from one bank to another, state to state, and even between branches of the same bank.
For example, TD Bank allows non-residents to open accounts, and in many branches, a passport is enough. However, if you visit a branch in New York, you may also need to provide a utility bill tied to a US address. Meanwhile, a TD Bank branch in New Jersey might not require this extra document. This variation highlights the importance of checking local branch policies before you proceed.
Banking rules are always evolving
US banking regulations are constantly changing, which means what works today may not work tomorrow. For example, while JPMorgan Chase previously worked with non-residents, it now generally refuses to open accounts for foreigners.
This means any advice or information on requirements is only accurate as of the publication date. Before heading to a bank, it’s essential to call the specific branch to confirm what documents and requirements they currently have. Make sure to clarify details such as:
- Do they require an ITIN?
- Is a US address necessary, and how can you confirm it? Will a lease agreement work?
- What is the minimum deposit?
- Are you required to prove the source of your funds?
- Will they accept all the documents you intend to provide?
If you go to the bank without confirming these details, you might face issues or even be barred from reapplying to that branch in the future. Planning ahead is crucial.
How can I open a US account online?
Currently, no US banks open personal bank accounts online for non-residents without an SSN, mainly due to strict KYC regulations and the Patriot Act. However, several alternatives exist that offer access to a US account remotely.
Payoneer
Payoneer provides US bank details and a physical debit card, though technically, the account is under Payoneer's name. It allows you to receive transfers from companies and marketplaces like Amazon, covering regions like the US, UK, EU, and more.
Pros:
- Easy registration and account setup
- Low fees and transparent pricing
- Can receive payments in multiple currencies
- Offers a debit card and has partnerships with major marketplaces
- No restrictions on incoming transfers
- Bonus programs for high transaction users
Cons:
- Cannot fund your account directly; only through incoming payments
- No solution for B2C credit card payments for e-commerce
- The account is not technically in your name; it’s under Payoneer’s name
Wise (formerly TransferWise)
Wise offers a multi-currency account, allowing you to hold funds in multiple currencies, including US dollars. It's particularly beneficial for individuals and small businesses looking for an easy way to receive global payments.
Pros:
- Easy to use and quick setup
- Allows receiving worldwide payments in multiple currencies
- Low transfer fees compared to traditional banks
- Access to over 50 currency wallets
- Transparent fee structure
Cons:
- No physical branches or in-person support
- Cannot fund the account with cash; only bank transfers are supported
- Some transaction limits apply
Zenus Bank
Zenus Bank aims to allow non-residents to open US bank accounts remotely. However, the launch has been delayed multiple times, and the service is currently not available. Interested users can join their waiting list for updates.
Pros:
- Promises the ability to open a US account fully remotely
- Ideal for non-residents looking for direct access to US banking
Cons:
- Not yet launched; multiple delays in launch dates
- Limited information on fees, requirements, and features until the official launch
Each alternative provides unique benefits and drawbacks, so it’s essential to choose the one that best fits your needs as a non-resident.
Final thoughts
If you decide to pursue opening an account through a US bank, make sure to do thorough research and confirm requirements directly with the bank branch. Regulations are constantly evolving, and requirements may differ depending on location and policy changes. Preparing in advance can save you time and increase your chances of a smooth banking experience.
In light of this, consider hiring a professional from SellerSail. Our team can guide you through the process, help gather the necessary documents, and navigate the unique challenges of opening a US bank account as a non-resident. With our support, you can ensure that every step is handled efficiently.
