Opening a personal bank account in the US as an expat, student or retiree

Expat employees with a visa: the simplest case

Opening a personal bank account in the US is straightforward for people who move there on a visa with a US address, who usually get a checking account with a debit card, but much harder for an individual living abroad. An employee on a work visa such as an H-1B or L-1 opens it with passport, visa, lease and, once issued, a Social Security Number, and salary then arrives by free direct deposit.

An employee arriving on a work visa, such as an H-1B or L-1, opens an account with passport, visa, lease and, once issued, a Social Security Number. The employer then pays salary by free direct deposit into the checking account.

F-1 and J-1 students: the I-20 form and a campus address

Banks near universities often open student accounts with no monthly fee on presentation of a passport, visa, I-20 or DS-2019 form and a university address. An SSN is only needed if the student works on campus.

Debit cards, cheques and payment apps

A checking account comes with a Visa or Mastercard debit card and a chequebook, still used for rent. Zelle, built into many banking apps, lets you pay a roommate or landlord within minutes.

Building a US credit history from arrival

Foreign credit histories are not picked up by Equifax, Experian and TransUnion. A secured credit card backed by a deposit, opened at your own bank, helps build a score needed to rent, insure a car or borrow.

Retirees and foreign pensions paid into the US

A retiree living in the United States can receive a euro pension by international transfer, converted into dollars on arrival. Comparing the US bank's exchange rate with a specialist transfer service avoids sometimes high margins.

Keeping a US account after leaving

Someone leaving the United States must update address and tax status with the bank, replacing the W-9 with a W-8BEN. Some banks restrict or close accounts of clients living abroad, especially outside the countries they serve.

US maintenance fees and how to get them waived

For a US checking account, large banks often charge monthly fees that are waived with regular direct deposit or a minimum balance. Overdraft, out-of-network ATM and international wire fees should be compared, as they are much higher than in Europe.

FDIC cover and joint accounts for couples

A joint account held by two people is insured separately from individual accounts, up to 250,000 dollars per co-owner. A couple can thus be covered above 250,000 dollars at one bank, provided ownership categories are respected.

FBAR, form 3916 and reporting accounts on both sides

A US tax resident keeping a French account reports foreign accounts on the FBAR if their total exceeds 10,000 dollars. Conversely, a French resident declares a US account on form 3916, and the US bank passes data on under FATCA.

Opening a checking account at a large national bank

At Bank of America, online opening is mainly aimed at residents with an SSN and a US address. A newcomer without an SSN usually goes to a branch with passport, visa and proof of address to open a checking account.

Personal bank account in the US: documents to prepare

To open a personal bank account in the US, first prepare identity documents: a valid passport, a visa or residence permit, and a document proving the reason for your presence, such as an employment contract or an admission letter. Banks also check that you are not in a high-risk situation, and sometimes ask for a second identity document issued by your home country. Keep copies of everything.

Proof of a US address is the document that most often blocks newcomers. A lease, a utility bill or a signed hosting statement may be accepted depending on the institution. If you are staying temporarily in a hotel or with a relative, ask the bank which proofs it accepts before you travel there, to avoid a second appointment that delays the opening by several days.

A Social Security Number is not always available on arrival. Some banks agree to open the account with the passport alone and ask for the number later; others require an ITIN or decline. Check before choosing the branch, because practices vary from one bank to another and from one state to another, and a positive answer by phone does not always bind the institution.

Choosing a US bank account for individuals by profile

An expat employee first looks for a checking account that receives salary by free direct deposit, with a widely accepted debit card and a reliable app. If the employer works with a specific bank, ask whether a simplified procedure exists for new staff, because some institutions open the account within minutes under that arrangement. This makes it easier to get a personal account in the United States.

A student prioritises no monthly fees, a branch close to campus and services suited to tuition payments. A retiree looks mostly at the cost of transfers from abroad, the exchange rate applied to the pension and the ease of speaking to an adviser in a branch. These criteria differ, which is why comparing several offers beats accepting the first one.

Whatever your profile, compare the same items: monthly fees and the conditions for waiving them, ATM network, cost of out-of-network withdrawals, payment limits, fraud assistance and ease of closing. Write them in a simple table and keep each bank's written conditions, so that you can check later that what was promised is actually applied to your account. Keep these terms on file.

Common mistakes with a personal account in the United States

The first mistake is to arrive with insufficient documents, counting on online opening from abroad. Most banks reserve that route for residents who already hold a local number and address. It is better to plan a branch visit in the first week, with all the requested documents, than to multiply attempts that are refused automatically. Keep proof of every step done in branch.

An overdraft, an out-of-network withdrawal or an international wire costs much more than in Europe, and these charges build up quickly. Watch the minimum balance required to waive monthly fees, switch on balance alerts, and decline any overdraft option that you did not explicitly request at opening. A neglected US checking account quickly becomes costly.

The third mistake concerns departure. Closing accounts without telling the bank, or leaving them dormant with an old address, exposes you to inactivity fees, lost mail and restrictions. Before leaving the country, settle direct debits, update your tax status and ask in writing whether the account can stay open while you live abroad. Keep a written record of the reply you receive. A US bank account for individuals can also stay open after departure only if the bank agrees.

After opening: security, credit and reporting

Once the account is open, activate the basic protections: alerts on every payment, strong authentication and the ability to lock the card from the app. Keep the account and routing numbers somewhere safe, because they are used for transfers and direct deposits. If you lose the card, report it straight away, since the customer's liability often depends on how quickly the alert is raised.

To build your credit history, use the secured card or entry-level card offered by your bank, and pay the balance in full each month. This simple behaviour improves the score over the months and later eases renting a home, car insurance or a loan. Avoid making many credit applications in a short time, because each one leaves a trace. Pay on time every month.

On the tax side, keep in mind that the US bank passes information under FATCA and that your country of residence may require you to declare the account. Depending on your situation, forms such as the FBAR may apply. Check them with a tax adviser and, if needed, with the bank, which can tell you which statements are available to prepare your declarations.