How to choose 🤔
Opening a US bank account as a non-resident can seem daunting, especially with the various options available. You need to consider several factors before making a decision. It's essential to evaluate your needs, such as whether you want the account for personal use, business transactions, or international transfers. Additionally, understanding the bank's requirements and features can help you make an informed choice.
Some banks offer better services than others, especially when it comes to non-resident accounts. It's crucial to know which banks cater to your specific requirements, whether it's ease of opening, safety, or features. In this article, we will evaluate multiple banks based on these criteria, providing you with a clear path to your new US bank account.
Offshore US banks 🌍
When exploring options, one alternative is to consider offshore US banks. These banks often provide services that cater to non-residents and can be a viable option for opening a USD bank account. However, it’s important to weigh the pros and cons before proceeding.
The main three Puerto Rican banks that have gained attention include Zenus Bank, FV Bank, and Strategic Bank. Among them, Zenus Bank stands out as a promising option. To open an account with Zenus, you need to provide a passport and proof of address. They allow residents of over 150 countries to apply, but there is a monthly fee of $20. This fee supports their claim of being a full reserve bank, which means they won’t lend out your deposits.
However, a significant drawback is that Puerto Rican banks are not regulated in the same way as their mainland US counterparts. This means your funds are not insured by FDIC, leaving you at greater risk if the bank fails. Therefore, while these banks may be easy to open, the security of your funds is a critical consideration.
Low fee transfers 💸
If you are looking for low-fee international transfers, Wise is a well-known option. Wise is not a bank but rather an electronic money institution. It offers a straightforward online process to open an account, and many users find it efficient for transferring USD internationally.
However, there are some limitations. Depending on your country of residence, you may face restrictions on features, including the inability to obtain a debit card. Furthermore, Wise does not provide the same level of protection for your funds as traditional banks, as it lacks FDIC insurance. Despite these drawbacks, Wise remains a popular choice for many non-residents due to its competitive transfer rates.
Business banks 🏢
If you run a US business or have a US LLC, you have access to some strong online banking options. Two of the most notable services are Mercury and RelayFi. Both companies offer a modern interface and are designed for online use, making the account setup process smooth and user-friendly.
Mercury provides some unique features, including unlimited virtual debit cards and a robust credit card option, which RelayFi does not. Furthermore, both banks offer substantial FDIC insurance coverage, with Mercury providing up to $5 million. This level of insurance gives users peace of mind regarding the safety of their funds.
However, a key requirement for both services is that you need to have a US LLC or an operating business. As a non-resident, this could limit your options if you don’t meet this criterion. Additionally, not all countries are supported by these banking services, so eligibility can vary.
Personal account ONLINE 🗺️
If you're looking for a personal bank account, Charles Schwab offers an excellent solution with its International Brokerage Account. This account functions as both a bank and brokerage account, allowing you to invest in US securities while enjoying the benefits of a bank account.
One of the standout features of the Schwab account is that it does not require a US address for opening. This is particularly advantageous for non-residents. The account comes with a debit card that has no foreign transaction fees and offers ATM fee reimbursements, making it ideal for international travelers.
The signup process is straightforward and can be completed online. Although there is a mention of a $25,000 minimum initial deposit, this requirement is often not enforced. Additionally, the funds in your Schwab account are protected up to $250,000, similar to FDIC insurance.
Top 5 US banks 🏦
For those who need a traditional banking experience, opening an account with one of the top five US banks is possible for non-residents. The major players include Chase, Bank of America, City, Wells Fargo, and PNC. However, the process can be more complex and may require an in-person visit.
To open an account at these banks, you typically need two forms of ID and proof of address. It's crucial to choose the right bank based on your needs, as customer service can vary significantly. Chase is often recommended for its relatively better service compared to others.
Be prepared to visit a branch in person, and be creative with your documentation if you lack a US address. Some banks have flexible policies regarding address verification. If you're denied at one branch, don't hesitate to try another branch or even a different bank.
Credit cards 💳
Obtaining a credit card as a non-resident without a social security number can be challenging. However, having an Individual Taxpayer Identification Number (ITIN) can significantly improve your chances. An ITIN is an alternative to the SSN and is issued by the IRS for tax purposes.
Once you have your ITIN, applying for a credit card becomes much simpler. While you can open a bank account without an ITIN, you'll need one to obtain a credit card. Some banks may require you to start with a secured credit card if you lack a US credit history.
To simplify the ITIN application process, consider using services that specialize in this area. Once you have your ITIN, you can apply for almost any credit card with the bank where you already have an account. This approach can help you build your credit history in the US over time.
In conclusion, opening a US bank account as a non-resident is entirely feasible with various options available. Whether you opt for an offshore bank, a traditional bank, or an online service, it’s essential to understand the requirements and features of each. By following the guidelines provided in this article, you can confidently navigate the process and find the right banking solution for your needs.
