Reasons to Open a Bank Account in the US
There are many reasons you may want to establish a relationship with a financial institution in the United States. For U.S. citizens & permanent residents, it's easier to see how having a checking or savings account with a credible financial institution can be useful. If you're a foreign national who may be visiting for leisure, academics, a fellowship experience, or work, it may be more difficult to see the benefits.
You may find that having a U.S.-based checking or savings account can help with the following:
- Receiving direct deposit payments
- Keeping money safe
- Lower costs to fund management
Despite these and other benefits, as much as 4.2% (~5.6 million) of U.S. households are considered unbanked because they don't have a bank or credit union account (FDIC, 2023).
If you're interested in opening a checking or savings account with a financial institution in the United States, here's what you'll need to know to make an informed choice.
Step 1: Decide on Services and Products You Need
Identify which banking products or services you need. Understanding your goals—whether managing daily expenses, saving for the future, or borrowing—can help you select the most appropriate type of account:
- Checking Accounts: for everyday spending, bill payments, and direct deposits
- Savings Accounts: store money and earn modest interest
- Money Market Accounts: offer higher interest rates than savings accounts
- Certificates of Deposit (CDs): fixed interest rates over a set period
- Loans: personal, auto, home, and student loans based on eligibility & credit
Many financial institutions offer credit cards and other products to their members. It's important to research the eligibility for these services and consider the time frame of when you may want to use those financial products or services too.
Step 2: Choose the Right Financial Institution
Consider both traditional banks and credit unions. Each has pros and cons depending on your needs and eligibility:
- Banks: For-profit institutions that are generally FDIC-insured and may offer more extensive branch networks and digital tools
- Credit Unions: Nonprofit, member-owned institutions insured by the NCUA; often provide more favorable interest rates and personalized service
Not all banks and credit unions are insured by the Federal Deposit Insurance Corporation (FDIC) or National Credit Union Administration (NCUA), so do your homework on the financial institution you choose to give your business. Additionally, some financial products at an FDIC or NCUA-insured institution may not be covered. Typically, only checking and savings accounts are covered up to $250,000 per individual on the account.
Step 3: Understand That Processes Vary
Bank account opening procedures differ between institutions. Many allow online applications, particularly since online-only institutions are more prevalent now, while others may require in-person visits at a physical branch.
If you're looking for a physical branch location near a campus in the University of Illinois System, we have a Google map that includes lists of financial institutions close to each university's campus.
Requirements may vary depending on your residency status, visa, and type of account being requested. Contact the institution in advance to confirm what's needed.
Step 4: Be Prepared to Provide the Following
- Social Security Number (SSN)orIndividual Taxpayer Identification Number (ITIN)
- Proof of physical and mailing addresses (e.g., utility bill, lease agreement, or official correspondence)
- Government-issued photo ID (e.g., driver's license, passport)
- Initial deposit (amount varies by institution and account type)
Visa Status and ITIN Requirements
Your ability to open a U.S. bank account depends heavily on your visa status, length of stay, and documentation. Many banks welcome international students and workers but may have additional requirements for those without SSNs or long-term U.S. addresses. In such cases, banks may accept an ITIN instead, particularly for savings accounts and basic checking services.
Some institutions will help you complete the application for an Individual Taxpayer Identification Number (ITIN), Form W-7, if you don't already have one. Additionally, institutions who are also Certified Acceptance Agents (CAAs) can send the application materials directly to the IRS for processing on your behalf which may help reduce wait times which can be 7-11 weeks or longer (IRS, 2025).
Learn more and apply via the IRS ITIN portal or work with a Certifying Acceptance Agent (CAA).
Tips for Success
- Call ahead: Verify requirements with the bank before your visit
- Visit in person: Many banks require in-person verification for non-U.S. citizens
- Start with basic accounts: Establish a relationship and expand services over time
- Use international-friendly banks: Larger institutions often have experience with foreign nationals
Consumer Protections
Federal law prohibits financial institutions from discriminating based on national origin, race, or immigration status. If you feel your rights have been violated, submit a complaint through the Consumer Financial Protection Bureau (CFPB) complaint portal or the Illinois Department of Financial and Professional Regulation (IDFPR) File a Complaint page.
Additional Resources
References
- American Immigration Council. The facts about the individual taxpayer identification number (ITIN). (March 14, 2022).
- Bennet, R. (Jul. 1, 2024) How non-US citizens can open a bank account. Bankrate.
- Consumer Financial Protection Bureau. (Oct. 12, 2023) Can a lender consider the fact that I am not a U.S. citizen?
- Federal Deposit Insurance Corporation. (2023) How America banks: Household use of banking and financial services.
- Internal Revenue Service. (Mar. 12, 2025) How to apply for an ITIN.
- Internal Revenue Service. (Mar. 3, 2025) ITIN supporting documents.
- Internal Revenue Service. (Mar. 3, 2025) Obtaining an ITIN from abroad.
- Lin, S. (Jun. 27, 2022) Identifying and addressing the financial needs of immigrants. Consumer Financial Protection Bureau.
- National Immigration Law Center. (Apr. 1, 2024) Individual Taxpayer Identification Number (ITIN).
Disclaimer
The University of Illinois System Student Money Management Center does not endorse or promote any specific financial institutions that may be mentioned or linked to in external resources. Any promotional content or recommendations for particular banks or credit unions found on linked websites reflects the views of those organizations and not the University of Illinois System. Individuals should conduct their own research and due diligence when selecting financial services providers.
