Opening a US bank account for non-residents: documents and limits

A dual US banking system with federal and state charters

A US bank account for non-residents remains possible, though most banks require a branch visit, a verifiable address and either a US tax number or a W-8BEN form. Several federal and state regulators oversee the system, in which a bank holds either a federal charter from the OCC or a state charter supervised by its state regulator together with the Federal Reserve or the FDIC.

A US bank holds either a federal charter from the OCC or a state charter supervised by that state's regulator together with the Federal Reserve or the FDIC. Thousands of institutions coexist, from large national banks to community banks.

FDIC insurance of 250,000 dollars per depositor and category

The FDIC insures deposits up to 250,000 dollars per depositor, per insured bank and per ownership category, such as individual or joint accounts. The cover also applies to non-residents but does not extend to shares, funds or crypto-assets.

SSN, ITIN or W-8BEN: the tax identifier banks ask for

Residents provide a Social Security Number. A non-resident without one presents a passport and, depending on the bank, an ITIN issued by the IRS or a W-8BEN form certifying foreign status, which determines withholding on interest.

Why most large banks require a branch visit

Customer Identification Program rules require banks to verify identity and address. As they cannot do this remotely for most foreigners, large banks usually ask for a branch visit with two forms of ID, often during a stay in the United States.

Checking, savings and certificates of deposit

A checking account handles daily payments, a savings account pays interest with withdrawals limited by some banks, and a certificate of deposit locks funds for a fixed term. Monthly fees are often waived above a minimum balance.

ACH, wire transfers and instant payments

Domestic payments go through ACH, taking one to three business days, or by wire over Fedwire for urgent amounts. Zelle links many banks for person-to-person payments, and the RTP and FedNow networks allow instant transfers where the bank participates.

Proof of address and of a link with the country

For a bank account in the United States, a US residential address, a lease, an employment contract or a university admission make opening much easier. Without a US address many banks decline, and PO boxes or mail-forwarding addresses are generally not accepted as a residence.

FATCA, no CRS and reporting at home

The United States does not apply the OECD Common Reporting Standard but exchanges information under FATCA with countries that signed an intergovernmental agreement, including France. A French tax resident must still declare each US account on form 3916.

Withholding and bank interest paid to non-residents

Bank deposit interest paid to a non-resident is generally exempt from federal tax, but the bank may report it to the IRS on form 1042-S. Without a valid W-8BEN, backup withholding can apply.

Preparing your appointment at a US branch

At Bank of America, as at most large US banks, a non-resident will in practice need to visit a branch with a passport, a second ID and a verifiable address. It is wise to call the branch before travelling to confirm the exact document list.

US bank account for non-residents: steps to follow

To open a US bank account for non-residents without living there, the process follows a fairly stable sequence in practice. First choose a bank whose policy accepts non-residents, call it to check the conditions, then schedule a branch visit during a stay. Do not travel before obtaining, in writing if possible, the precise list of documents expected by the targeted branch.

On the day of the appointment, present your passport, a second ID, proof of your US address or of your link with the country, and the tax identifier requested: ITIN or W-8BEN form depending on the bank. The adviser enters the file, checks the documents and asks about the origin of funds and the intended use of the account. Answer simply and stay consistent with your documents.

After opening, the debit card and cheques are often sent by post to the declared address, which is a problem if you do not live there. Ask at the appointment how to receive them, how to activate online banking from abroad and which operations remain possible remotely. Depending on the institution, an initial deposit may be required, and the account may remain limited at first.

Choosing a bank for a non-resident US bank account

The American system counts thousands of institutions, and their policies toward foreigners differ widely. Large national banks offer a branch network and polished apps, but they often require physical presence. Community or regional banks sometimes show more flexibility, at the price of a less developed online service and a network that is less extensive across the country. Ask about this before you travel.

Check that the institution is FDIC-insured, because the 250,000-dollar protection only applies to insured banks. Also ask about monthly fees, the conditions for waiving them, the cost of incoming and outgoing wires, and the rules that apply if you leave the United States. A dollar account in the United States that becomes unusable remotely loses most of its value for a non-resident.

Finally, ask about the lifespan of the account. Some banks close the accounts of customers whose declared address is abroad, or ask for regular updates of tax documents. Note the answers, compare at least two institutions, and prefer the one that explains its rules clearly rather than the one that promises quick opening without detailing the conditions. Keep a written note of each answer.

Common mistakes when opening a bank account in the United States

The first mistake is to turn up without calling the branch. Policies change, vary from one state to another and even from one branch to another. A visit arranged without confirmation can end in refusal for lack of one specific document, and force you to postpone your plan until your next trip, with the travel costs that entails. Call ahead, even if the website seems clear.

The second mistake is to present a PO box or a mail-forwarding address as a home. They are generally not accepted, because the bank must be able to verify a residential address. Another frequent confusion concerns tax forms: the W-8BEN is for non-residents, whereas the W-9 is for US taxpayers. Use the one that matches your real situation. Ask the branch which tax form it will accept.

The third mistake is to believe that FDIC protection covers everything. It protects deposits up to 250,000 dollars per depositor, per insured bank and per ownership category, but not shares, funds or crypto-assets. Spread your assets across several insured institutions if necessary, and keep statements that prove the nature of each product held. Keep your statements together in one place.

Using the account and staying compliant

Once the account is active, choose the right channel for each operation. ACH suits routine payments and direct debits, wires suit urgent or international amounts, and instant networks suit person-to-person transfers when the bank takes part. Compare the fees and exchange rates applied, because they weigh on the real cost of each transfer, especially for large amounts. A bank account in the United States works best when each channel is chosen deliberately.

Keep your tax documents up to date. The W-8BEN form has a limited period of validity and must be renewed according to the bank's rules; otherwise backup withholding may apply. Also keep annual statements and any interest forms, which are used to prepare your declarations in your country of residence. Set a reminder for the renewal date. Doing so avoids surprises with a non-resident US bank account.

On the reporting side, the United States exchanges information with many countries under FATCA, without applying CRS. This does not exempt the holder from declaring the account and its income under the rules of their tax residence. Check these obligations with a tax adviser, and ask the bank which documents it can supply to ease these steps. Keep copies of everything you send.