How to Open a US Bank Account as a Non-Resident

As a non-resident or even someone who’s renounced US citizenship, it’s still relatively easy to open a US bank account.

While there are plenty of benefits to opening a US bank account, there are also some drawbacks. 

Despite these challenges, you can still find a bank that will accept you as a non-resident – fairly painlessly. 

Read on to discover how and if you’re interested in opening a bank account in the US, we can help you do it with minimal hassle here.

How to Open a US Bank Account 

As long as you have the right paperwork, you can open a bank account for yourself or your US businesses as a citizen, resident or non-resident in the US. 

This may come as a surprise as, generally speaking, it’s becoming increasingly difficult for most people to open foreign bank accounts. 

Banking hubs like Singapore and Hong Kong have made it near-impossible for foreigners to open new accounts, while laws like the Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standard (CRS) have made opening bank accounts in other countries even more difficult.

The US is among the easiest places in the world to open a bank account. Along with countries like Georgia, it’s one of the few nations where you can open a bank account as a non-resident with relatively little hassle.

Some people are hesitant to do any kind of business in the US, as privacy is an increasing concern. However, while the US does monitor its citizens’ finances abroad through laws like FATCA, it doesn’t pay as much attention to non-resident banking in the US.

The Benefits of Banking in the US

Banking in the US comes with a handful of benefits that make it an attractive place to bank. 

The US is well-connected in the global financial system, and other countries tend to trust money coming in from the US. People tend to ask fewer questions about transfers from the US than, say, Belize.

High Deposit Insurance for All

Another benefit of US banking is that you get US$250,000 in deposit insurance from the Federal Deposit Insurance Corporation (FDIC). That’s more than anywhere else in the world, including Singapore and the European Union (EU).

Even non-resident US bank accounts are insured by the FDIC. 

Tax Benefits

We all know that the US tax system is one of the most challenging to get trapped in. Along with high rates of federal and state taxes, the US citizenship-based tax system means that wherever you go in the world as a US person, you are obliged to report your taxes to the Internal Revenue Service (IRS).

However, for those classified as non-US persons, you don’t need to worry about US taxes – even if you have a bank account in the country. 

That’s provided you don’t fall into the US tax net under the Substantial Presence Test if you spend enough time in the US.

If you’re not a US person for tax reasons, then you don’t need to pay tax on any interest you earn from your US bank account.

The Challenges of Banking in the US

While there are plenty of benefits to opening a US bank account, there are also a handful of drawbacks. 

First, US banks aren’t always the best banks in the world. Their liquidity is often low and the interest rates on offer aren’t that attractive – especially for non-residents. 

Also, despite the fact that the US is a technologically advanced country, its banking sector is known for adhering to outdated processes. 

Many US banks rely heavily on face-to-face interaction, which might increase the likelihood of your account being locked suddenly. In fact, accessing your US bank account from abroad can be a red flag for many. 

They’re also more prone to instability than banks in other developed countries. In fact, the US has one of the highest rates of bank failures in the world – think First Republic Bank, Signature Bank and Silicon Valley Bank, all of which failed in 2023. 

The US has experienced numerous bank failures over the course of its history. Over the years, the US has also experienced periods of political instability, which impacts the solvency of the FDIC.

If one or two major banks failed again, the FDIC could run out of money fairly quickly, with Congress having to step in and allocate money to bail them out. 

While this has happened in the past, who’s to say it will in future? 

Another disadvantage of the US banking system is that you can only bank in US dollars. 

Unless you’re depositing millions of dollars into a private wealth account, then you’ll need to deal with exchange rates and fees if you deposit foreign currency. 

However, despite these potential problems, many non-US citizens still find banking in the US beneficial.

How to Open a US Bank Account for Non-Residents

Since the US is one of the easiest places in the world to open a bank account, you won’t have much trouble opening an account as a non-resident.

As a non-resident, however, you likely won’t be able to open an account online. 

While you can sometimes open an account remotely if you have the right connections, banks in the US generally want people to open accounts in person. You will also need a handful of documents to open an account. 

First, you’ll need a government-issued ID, such as a passport, and you should also bring proof of address. Since banks in the US usually send important items like debit cards by mail, you will need a real mailing address to open your account.

Additionally, you will likely need to provide information about your source of funds. 

Since the rules keep changing, the requirements for opening a bank account can vary according to state, branch or time. So, it’s better to call your chosen bank beforehand to double-check its requirements. 

If you walk into a bank unprepared and you do not meet its requirements, it’s possible that you will be disqualified from applying there again. 

You will also need a minimum deposit to open the account. Luckily, minimum deposits in the US are usually fairly low, ranging from around US$100 to US$1,500.

Finally, you may need to give the bank information about where you pay taxes. While the US isn’t a part of CRS, more banks have started asking for tax information in light of increased worldwide regulation.

If you spend most of your time in one country and pay taxes there, then this shouldn’t be much of an issue. However, if you live the Nomad Capitalist lifestyle and are in the process of moving to a country where you aren’t required to pay taxes, this can get trickier.

Let’s suppose you’re from Germany and have a German passport, but you’re in the process of moving to St Kitts and Nevis — a country with no income tax.

If you tell the bank that you pay tax in Germany and they report that to the German government, that may cause problems since you’re in the process of leaving the country’s tax system. 

If you’re in a similar situation, then you should be honest with the bank, and you may want to seek a professional when setting up your account.

Types of US Bank Accounts Available to Non-Residents

In general, non-residents can open two types of bank accounts – personal and corporate accounts.

Nearly anyone can open a personal bank account. As a non-resident, if you have a US company, you can open a corporate account fairly easily as well.

Opening a Personal Account as a US Non-Resident

Non-residents can open a number of different personal accounts. Most banks will let you open a current account, which is commonly called a checking account in the US.

You can also open a savings account at most banks. Some banks will also let you open a term deposit account like a one-year Certificate of Deposit (CD).

With personal accounts, US banks will likely inquire about your source of funds, so you should be prepared to provide proof of where the money you’re depositing came from – whether it’s savings, capital gains or any other legitimate source of income.

You’ll also need to be prepared for hefty conversion charges. US banks generally only accept US dollars, and they’re not usually accustomed to dealing with foreign currencies at the mass-market level.

However, as long as you have the right paperwork, you should be able to open a personal bank account in the US.

Opening a Corporate Account as a US Non-Resident

Corporate accounts can be a bit more tricky. 

Unless you already have an established relationship with a bank or are depositing millions of dollars, then most US banks will not open an account for a foreign company.

Luckily, non-residents can set up US Limited Liability Companies (LLCs) without much trouble, and once you set up the LLC, you only need to file Form 5472 annually.

Plus, when you set up a US LLC as a non-resident, you can take advantage of various tax benefits and can even incorporate US companies together with foreign companies.

It’s also important that you carefully choose which state you register your LLC in. It should have low or no state taxes, lax privacy laws for non-resident companies and no annual reporting or fees. 

Delaware, Wyoming, New Mexico and Nevada are some of the states that are more conducive to foreign business activity.  

If you’re interested in using US LLCs and US banking in your offshore strategy and need more guidance, click here.

Once you have a US company, setting up a corporate bank account is simple, provided you come prepared with the right documentation.

Where to Open a US Bank Account for Non-US Residents 

Once you’ve made the decision to open a bank account in the US, you need to decide where to open it. 

There are some challenges that can make finding a good bank in the US more difficult for non-residents.

The challenge with banking in the US is that the landscape is constantly changing – banks can fail or change their policies seemingly overnight.  

Another difficulty with the US banking system is that not all bank employees are well-trained, and they may not be familiar with their bank’s policies regarding non-residents.

You could walk into a Wells Fargo or Bank of America, and the teller or manager may tell you that they don’t accept foreigners – even though these banks actually do. 

While you may have been rejected by an individual who wasn’t fully aware of the bank’s policies, you may still be able to open an account there with a different manager or at a different branch.

To help you find the right bank, explore our detailed guide on the best US bank accounts for global citizens.

Your Banking Limitations as a US Non-Resident

Online banks like Capital One 360 or Ally Bank are usually out of the question for non-residents. 

Their high-interest savings account options are typically only for US citizens, and they’re not even very friendly toward US citizens living abroad who hold a basic checking account. 

Online banks, then, aren’t generally going to be an option for non-residents.

Credit unions are also out of the question. They’re usually small, local and aren’t particularly open to non-residents looking to open overseas bank accounts.

As a general rule, larger banks like US Bank, Chase and Wells Fargo are more open to non-residents than smaller banks.

Larger banks have less exposure than small, local banks or credit unions, which makes them more willing to take risks. If they get a bad apple, they have plenty of other accounts and can move on fairly easily. 

Smaller banks, on the other hand, will feel more heat if they have problems, so their risk tolerance is much lower. Even as a US citizen living abroad, you can have problems with small banks in the US.

When you open a bank account at a local bank, say, in Arizona, you could be asked to demonstrate local ties with the area before your account is set up and ready to use. 

Larger banks, then, are generally your friend. They’re not as paranoid about compliance as smaller banks and usually have solid features like Visa- or Mastercard-backed debit cards.

However, you may not be able to get the kind of service that you want with larger banks, and they’re not as technologically adept as offshore banks in other countries.

Banks such as Bank of America or US Bank rely heavily on self-service functions like online banking. But, their apps aren’t as advanced as those used by similar banks in countries like Singapore.

While online banking in the US can make some of the simpler aspects of remote banking easier to deal with, you usually need a US phone number to manage your account – especially when you need to authorise large transfers or resolve complex issues over the phone.

You can get a temporary SIM card when you visit the US, but that’s not going to work when you inevitably leave the country. A service like Google Voice is certainly an option, but that comes with its own challenges.

Larger banks also rely heavily on mail for sensitive items like debit cards, so you’ll need to have a mailing address that you can easily access if the bank sends anything to you.

Despite these challenges, larger banks are still usually your best bet for opening a bank account as a non-resident simply because they’re more willing to approve your account and work with you.

However, if you want to open an account at a bank where you can get more personalised, hands-on service, it’s still possible to find small banks that cater to non-residents.

US Bank Account for Non-Residents: FAQs

Opening a US Bank Account as a Non-Resident

Despite all the challenges the US faces, the country’s banking system might not be a bad choice for global citizens. 

Maybe you’re renouncing your US citizenship but want to maintain your US bank account. Or, you could be a global citizen looking for the best offshore banking options. 

Either way, a US bank account could be worth considering.

At Nomad Capitalist, we work with a number of banks in the US. We have a personal account manager who helps with issues like wire transfers and resetting online banking. We have set up similar accounts for many of our clients.

Our expert team creates holistic strategies for high-net-worth individuals to protect all their assets, including high-yielding investment options. We advise on the best jurisdictions for your investments, combined within a tax, immigration and asset protection strategy designed specifically for your needs.

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