Opening a US Bank Account as a Non-US Person: A Practical Guide

The United States is, paradoxically, one of the hardest countries in the world in which to open a bank account as a foreign national. Despite its size, financial sophistication, and global importance as a financial centre, the US domestic banking system is remarkably inhospitable to non-residents and non-citizens. Understanding why, and knowing the practical workarounds, is important for internationally mobile individuals and investors with US connections.

Why it is so difficult

The difficulty stems primarily from regulatory compliance burden rather than any deliberate policy of exclusion. Several overlapping regulatory frameworks create friction:

FATCA. The Foreign Account Tax Compliance Act requires US financial institutions to apply enhanced due diligence to accounts held by non-US persons and to collect documentation (W-8BEN forms) confirming that the account holder is not a US person. The regulatory paperwork involved in serving foreign nationals has led many banks to restrict or prohibit accounts for non-residents as a matter of commercial policy.

BSA/AML. The Bank Secrecy Act and anti-money-laundering regulations require banks to conduct Know Your Customer (KYC) verification and, in the case of foreign nationals, to perform additional due diligence on source of funds and the purpose of the account. Without a Social Security Number, US address history, or US credit record, foreign nationals present higher KYC risk scores.

State-level regulation. Banking in the US is regulated at both federal and state levels. Some state-specific requirements add additional compliance complexity for foreign national customers.

The combined effect is that many major US retail banks — including Bank of America, JPMorgan Chase, and Wells Fargo — will, in practice, decline to open accounts for foreign nationals who lack a Social Security Number (SSN) and a US address. Some will accept an ITIN as an alternative to an SSN, but even then the process is often difficult.

Which institutions do accept non-US persons

Despite the general difficulty, a number of options exist for non-US persons who need US banking access:

Charles Schwab International. For internationally mobile individuals with investment needs, Charles Schwab is frequently cited as one of the most accessible US financial institutions for non-residents. Schwab's international division has historically been willing to open brokerage accounts for foreign nationals in many countries, and the Schwab debit card is particularly valued by international travellers for its fee-free global ATM withdrawals. Note that Schwab's offering changes and eligibility depends on country of residence — verify current terms directly.

HSBC US. If you hold an HSBC Premier relationship internationally, HSBC's US operation may be accessible as part of the global Premier relationship. This is one of the clearest pathways to a US bank account for existing HSBC customers.

Citibank. Citi has historically been more flexible than some peers in serving international customers, particularly those who are existing Citi customers in their home country and want to open a US account.

Local community banks and credit unions. Some smaller US banks and credit unions are more flexible than national banks in their approach to non-resident account opening. They may require an ITIN, a visit to a branch, and a satisfactory explanation of why you need a US account, but they are sometimes prepared to open accounts on a case-by-case basis.

Business banking — Mercury and Relay. For non-US persons running a US-registered business entity (typically a Delaware LLC or C-Corp), platforms like Mercury and Relay have provided relatively accessible US business banking. Eligibility requirements have evolved — check current criteria. These are not traditional banks and the regulatory protections may differ from FDIC-insured deposits.

The ITIN: what it is and how to get one

For non-US persons who interact with the US financial or tax system, an ITIN (Individual Taxpayer Identification Number) is often the first step. An ITIN is a nine-digit tax processing number issued by the IRS specifically for individuals who:

• Are not eligible for a Social Security Number (i.e., are not US citizens or authorised to work in the US)
• Have a requirement to file a US tax return (for example, because they receive US-source rental income or investment income)
• Need to open a financial account with an institution that requires a tax identification number

How to obtain an ITIN:

1. Complete IRS Form W-7 (Application for IRS Individual Taxpayer Identification Number)
2. Provide original documents or certified copies proving identity and foreign status — typically a valid passport is sufficient
3. Submit the form by mail, through an IRS Taxpayer Assistance Center (TAC) in the US, or through a certified acceptance agent (CAA)
4. Processing typically takes seven to eleven weeks; certified acceptance agents can often reduce delays

An ITIN does not authorise the holder to work in the US, does not confer immigration status, and is not equivalent to an SSN for most purposes. However, for the specific purpose of filing US tax returns and for some financial account opening requirements, it serves its intended purpose.

Why you might need a US bank account

Before going through the considerable effort of opening a US bank account as a non-US person, it is worth considering your actual need:

US investment accounts. Some US brokerage platforms — including certain retirement accounts and direct equity investment platforms — require a US bank account to fund the account. However, many international brokerage platforms, including those based in the UK, Channel Islands, or Luxembourg, provide access to US equity and bond markets without requiring a US bank account.

US rental income. If you own residential or commercial property in the US, you will receive rental income in USD. This income can be collected by a US property manager who remits it internationally, eliminating the need for a US bank account. Alternatively, Wise USD account details or a Schwab brokerage account can receive USD electronically.

US business operations. If you are running a business with US customers or suppliers, a US bank account simplifies transactions considerably and avoids the FX costs and delays involved in international wires.

US family members. If you have family members in the US and regularly transfer money to them, a US account enables simple ACH or domestic wire transfers rather than international remittances.

US dollar income. Some internationally mobile individuals earn USD income from non-US sources (consultancy, intellectual property, investment returns) and need an efficient way to hold and deploy those funds.

Alternatives to a traditional US bank account

For many of the use cases above, alternatives to a traditional FDIC-insured US bank account exist and may be more practical:

Wise USD account. Wise provides genuine US bank account routing details (ABA routing number and account number) for USD receipt. Funds can be held in USD, exchanged to other currencies, or transferred internationally. Wise is regulated as a payment institution, not a bank, and balances are not FDIC-insured in the traditional sense — though Wise holds funds in regulated safeguarding accounts.

Revolut US. Revolut has expanded into the US market and offers USD accounts. Eligibility and features vary.

IBKR (Interactive Brokers). For investment-focused expats, Interactive Brokers supports non-US customers and provides USD account capabilities within a brokerage context. IBKR is regulated by multiple financial authorities internationally.

Multi-currency offshore accounts. An offshore account with HSBC Expat or Barclays International that holds a USD balance and has USD account details can serve some of the same functions for receiving USD payments, at the cost of an additional international transfer when funds need to reach US domestic payees.

Practical steps for non-US persons seeking US banking access

1. Clarify your actual need. Be precise about what you need US banking for — in many cases, an alternative solution is more practical.
2. Obtain an ITIN if required. If you have US tax filing obligations, get your ITIN first — it opens more doors.
3. Leverage an existing international banking relationship. If you bank with HSBC or Citi internationally, approach their US operations first.
4. Consider Charles Schwab. If investment access and a globally usable debit card are priorities, investigate Schwab's international offering.
5. For business needs, consider a US LLC with Mercury or Relay. If the underlying need is business banking for a US entity, these platforms may be more accessible.
6. For USD receipt and spending, use Wise or equivalent. For the majority of personal USD banking needs short of a full traditional bank account, Wise's USD account details are sufficient and significantly easier to obtain.

How Global Investments can help

Global Investments advises internationally mobile individuals and investors — including those with US connections — on cross-border banking, investment, and wealth management. Our advisers can help you assess whether you genuinely need a US bank account or whether alternative structures better suit your circumstances, and can introduce you to the appropriate institutions or intermediaries for your situation.

With over 32 years of experience serving internationally mobile clients, we understand the practical realities of cross-border financial management. Contact us to discuss your requirements.