If you’re planning to move to the United States permanently, there are a few important things you’ll need to take care of as soon as you arrive. One of the first things on your to-do list should be finding a job. Once you start earning an income, you’ll need a safe place to store your money, which means opening a U.S. bank account.
Having a bank account will make it easier to manage your money and handle daily tasks such as:
- Setting up automatic payments for rent and utilities
- Accessing your money without needing to send wire transfers
- Writing checks
- Using finance apps like Mint to track your spending
In this article, we’ll explain how to open a bank account in the U.S., how to write a check, and how to set up automatic payments.
How to Open a U.S. Bank Account
Most U.S. banks allow non-citizens to open an account, but there are a few requirements you need to meet. If you have a green card (permanent resident status), opening an account will be straightforward. However, if you don’t have a green card, you might need to meet a different requirement: the substantial presence test.
The Substantial Presence Test
To pass the substantial presence test, you need to have lived in the U.S. for at least:
- 31 days during the current year
- A total of 183 days over the past 3 years, including the current year. To calculate this, count all the days you lived in the current year, ⅓ of the days from the previous year, and ⅙ of the days from two years ago.
You can find more details on the IRS website if you want to learn more about this test.
If you don’t have a green card, it’s still possible to open a U.S. bank account if you have an Individual Taxpayer Identification Number (ITIN) and a U.S. address. It’s a good idea to contact your bank to confirm their specific requirements, as they may vary.
Documents You’ll Need to Open an Account
To open a U.S. bank account, you will need to provide several documents. Here’s a general list of what you’ll need:
- Cash deposit: Usually between $25 to $100 to open your account.
- Personal information: Your full name, phone number, and U.S. address.
- Social Security Number (SSN): If you don’t have an SSN, you can use an ITIN instead.
- Utility bill: This proves your U.S. address (a phone or electric bill, for example).
- Two forms of government-issued ID: This can include:
- Your passport (with your visa)
- A U.S. driver’s license or foreign driver’s license
- A work ID card from your employer
- A retail credit card
Banks may have different requirements, so it’s important to double-check with the bank you plan to use. If you don’t have a green card or SSN, you might need to visit the bank in person instead of applying online.
If you qualify for an SSN but haven’t gotten one yet, be sure to check out our guide on how to apply for one.
Applying for an ITIN
If you don’t qualify for an SSN, you can apply for an ITIN (Individual Taxpayer Identification Number) to open a bank account. To apply for an ITIN, you’ll need to submit IRS Form W-7 along with your immigration documents and proof of identity, along with your federal tax return.
There are three ways to apply:
- Mail your documents to the IRS Austin Service Center.
- Apply in person with an authorized Certifying Acceptance Agent.
- Make an appointment at an IRS Taxpayer Assistance Center.
Once you’ve been issued an ITIN, you won’t need to apply for one again. You can file your taxes as usual, and use your ITIN for things like opening a bank account.
How to Write a Check in the U.S.
If you need to pay by check, it’s important to know how to fill one out correctly. Here’s a simple guide on how to write a check from top to bottom:
- Date the check: Write the date in the top right corner. This tells the bank when the check was written.
- Write the recipient’s name: On the line next to “Pay to the order of,” write the name of the person or business you’re paying.
- Write the amount in numbers: In the box next to the dollar sign, write the amount in numbers. For example: $50.30.
- Write the amount in words: Below the recipient’s name, write the same amount in words. For example: Fifty dollars and 30/100. Even if it’s a round number, like $50.00, write “Fifty dollars and 00/100.”
- Add a memo (optional): You can use the “memo” line at the bottom left to note the purpose of the payment. For example: “Rent for August.”
- Sign the check: Finally, sign your name on the bottom line. This authorizes the payment.
Once you’ve filled out the check, you can give it to the recipient, who can then cash or deposit it into their account.
Setting Up Automatic Payments
Having a U.S. bank account also makes it easy to set up automatic withdrawals for bills like rent, utilities, or loan payments. You can set up automatic payments directly through your bank or by visiting the company’s website.
To set up automatic payments, you’ll need to provide the payee’s information, including their name, address, and account number (this is usually listed on your bill). You’ll also need your bank account number and routing number.
You can find these numbers on your checks:
- The routing number is 9 digits long and tells the bank where the funds should go.
- Your account number identifies your specific account.
- A check number keeps track of your checks.
These numbers are listed at the bottom of each check, with the routing number on the left, followed by your account number and check number.
Different banks may have different ways to set up automatic payments, so be sure to check with your bank for specific instructions.
Whether you’re opening a bank account for the first time, learning how to write a check, or setting up automatic payments, understanding the basics of U.S. banking will help you manage your finances more easily as a new immigrant. Be sure to research your options and gather the necessary documents ahead of time to make the process as smooth as possible. If you have any questions or need further assistance, contacting your bank directly is always a good option.
