Gokce Tandogdu
ITIN Specialist, itin.net
Many U.S. banks do not have a specific policy that explicitly states they accept an ITIN number for opening a bank account. However, a significant number of financial institutions, particularly larger national banks and online-only banks, do permit non-residents and foreign nationals to open accounts using an ITIN as a primary form of identification, provided other requirements are met. The key is that the bank must be willing to accept an ITIN in lieu of a Social Security Number (SSN), which most individuals without U.S. work authorization do not possess. The question of what bank accepts ITIN number is best answered by understanding the general requirements and the types of institutions that are more likely to accommodate ITIN holders.
Banks That Generally Accept ITINs
While a definitive, exhaustive list is impossible to maintain due to frequent policy changes and the sheer number of financial institutions, certain types of banks are more ITIN-friendly. These often include:
- Large National Banks: Institutions like Chase, Bank of America, and Wells Fargo have extensive compliance departments and established procedures for handling non-resident accounts. They are more likely to have policies in place that allow for ITINs, though requirements can vary by branch and even by banker.
- Online and Neobank Platforms: Many newer, digital-first banks are designed with international customers in mind. They often have streamlined online application processes and may be more flexible with alternative identification. Examples include Mercury, Relay, and Brex, which are popular among entrepreneurs and businesses. Opening a U.S. bank account with an ITIN is often a core offering for these platforms, as they cater to a global clientele. These services can be instrumental for those forming a U.S. LLC or needing to manage finances for a U.S. business.
- Credit Unions: While some credit unions have membership restrictions, others are open to non-residents and may accept ITINs. Their specific policies need to be investigated directly.
It is crucial to understand that even when a bank accepts an ITIN, they will likely have additional requirements to verify your identity and comply with federal regulations like the Bank Secrecy Act and the USA PATRIOT Act. These regulations aim to prevent money laundering and terrorism financing, and banks must collect sufficient information to satisfy these mandates.
Requirements Beyond the ITIN
Simply having an ITIN is not enough to open a U.S. bank account. Banks have a standard set of requirements for all new account holders, which are often more stringent for non-residents. When trying to determine what bank accepts ITIN number, be prepared to meet these additional criteria:
- Valid Government-Issued Photo ID: This is typically a passport. Some banks might accept a foreign driver's license, but a passport is almost universally required. It must be unexpired.
- Proof of U.S. Address: This can be a utility bill, lease agreement, or other official mail showing your U.S. residential address. If you do not yet have a U.S. address, some banks may allow you to use a foreign address, but this is less common and depends heavily on the institution's policy. Some online banks are more flexible here.
- Secondary Identification: Some banks may request a second form of ID, which could be a foreign ID card, a national identity card, or even a credit card with your name on it.
- ITIN Confirmation Letter: While not always explicitly requested, having your IRS-issued ITIN confirmation letter (often the CP-565 notice) can be helpful, especially if the banker is unfamiliar with ITINs.
- Initial Deposit: Most banks require a minimum deposit to open an account. This amount varies significantly, from $25 to $100 or more.
- Information for Tax Reporting: You will likely need to complete IRS Form W-9, Request for Taxpayer Identification Number and Certification. Even though you have an ITIN, you are certifying that you are not a U.S. person for tax purposes and are providing your ITIN. This form is used by the bank to report interest earned to the IRS.
The Application Process: In-Person vs. Online
Opening a bank account with an ITIN can be approached in two main ways: visiting a branch in person or applying online.
In-Person Application:
This is often the most reliable method, especially for traditional banks. Visiting a branch allows you to speak directly with a banker who can explain the requirements and answer your specific questions. It also provides an opportunity to present your documents in person. The process typically involves:
- Scheduling an Appointment: It's advisable to call ahead and schedule an appointment to ensure a banker is available to assist you, particularly with non-resident applications.
- Gathering Documents: Collect all required identification, proof of address, and your ITIN.
- Completing Forms: Fill out the bank's new account application and IRS Form W-9.
- Making the Initial Deposit: Fund the account.
Online Application:
Online banks and neobanks often have a more streamlined digital process. This can be faster and more convenient, especially if you are not physically in the U.S. or prefer a digital experience. The steps usually include:
- Visiting the Bank's Website: Navigate to the bank's online application portal.
- Filling Out the Online Form: Enter your personal information, including your ITIN.
- Uploading Documents: You will typically be asked to upload scanned copies or photos of your identification and proof of address.
- Verification: The bank will review your application and documents. This may involve identity verification checks.
- Funding the Account: You can usually fund the account electronically from another bank account or via wire transfer.
Some online platforms are specifically designed for international entrepreneurs and may offer additional services valuable for those setting up a U.S. LLC, such as facilitating the opening of an EIN or business bank account.
Challenges and Considerations
Navigating the process of opening a bank account with an ITIN can present challenges. Understanding these upfront can save time and frustration.
- Banker Familiarity: Not all bank employees are equally familiar with ITINs. You may encounter situations where a banker is unsure or states that an ITIN cannot be accepted. In such cases, politely explain that many institutions do accept ITINs and, if possible, mention specific banks known to do so. Having your ITIN confirmation letter can help.
- Branch Policies: Even within the same national bank, policies can differ between branches. A banker at one branch might be more accommodating than another.
- Physical Presence: Many banks require you to be physically present in the U.S. to open an account, even if applying online. Some may allow applications from abroad, but this is less common and usually applies to specific international banking services.
- Business Accounts: Opening a business bank account with an ITIN can be more complex than opening a personal account. Banks will often require proof of business registration (like Form 5472 for an LLC), an EIN, and details about the business owners. Some neobanks specializing in business banking are more adept at handling these situations.
The Role of Certified Acceptance Agents (CAAs)
While CAAs primarily assist with obtaining an ITIN by verifying original identification documents, they can sometimes offer guidance on banking matters. If you are applying for your ITIN through a Certified Acceptance Agent, they may have insights into which financial institutions are more receptive to ITIN holders. The itin.net service connects you with trusted CAAs who understand the nuances of ITIN applications and can guide you through the process. This can be particularly helpful if you are new to the U.S. system and unsure where to begin.
Why Banks Are Cautious
Banks are highly regulated entities. Their caution stems from several factors:
- Know Your Customer (KYC) Regulations: Banks must verify the identity of all customers. For non-residents, this process can be more complex due to differing identification standards and potential risks.
- Anti-Money Laundering (AML) Laws: Strict AML laws require banks to monitor transactions for suspicious activity. Processing ITIN holders requires robust systems to ensure compliance.
- Risk Assessment: Banks assess the risk associated with each customer. Non-residents may be perceived as higher risk due to factors like foreign residency and less established credit histories in the U.S.
Despite these hurdles, many U.S. banks recognize the economic importance of serving non-residents and foreign nationals. The demand for U.S. bank accounts from international individuals and businesses is substantial, driving institutions to develop processes that accommodate ITIN holders.
Next Steps After Opening an Account
Once you have successfully opened a U.S. bank account using your ITIN, remember these ongoing considerations:
- Account Maintenance: Adhere to the bank's terms and conditions, including minimum balance requirements, to avoid fees.
- Tax Reporting: Ensure you understand how interest earned will be reported to the IRS. Form W-9 is typically filled out at account opening, and the bank will issue a Form 1099-INT if you earn over a certain threshold.
- ITIN Renewal: Your ITIN has an expiration date (typically 7 years) and needs to be renewed if you continue to have U.S. tax filing obligations. You can renew your ITIN using Form W-7. The process for renewal is similar to the initial application.
- Business Filings: If you are using the bank account for a U.S. business, such as a U.S. LLC, ensure you are meeting all U.S. tax filing requirements, including filing Form 5472 annually if you are a foreign-owned single-member LLC.
For individuals seeking to establish a U.S. presence for business, understanding what bank accepts ITIN number is a critical first step. It often goes hand-in-hand with obtaining an EIN and forming an entity like an LLC. While the process can seem daunting, many resources and institutions are available to assist non-residents in successfully opening U.S. bank accounts. If you encounter significant difficulties or have complex financial needs, consulting with a U.S. tax professional or financial advisor specializing in non-resident matters is recommended. You can also find further information on our blog or contact us for guidance.