Opening a Bank Account – Chicago
U.S. banks are required to verify the identity of every individual who opens a bank account. In compliance with federal regulations, all banks operating in the U.S. have established Customer Identification Programs (CIPs) that they must follow when opening a new account. It may vary from one bank to another, but all banks are going to require the following information from you:
- Name
- Date of birth
- Street address (P.O. boxes are not allowed)
- An identification number:
For non-U.S. citizens, an identification number may be:
- A taxpayer identification number
- A passport number and the country of issuance
- An alien identification card number
- A number and country of issuance of any other government-issued document stating nationality or residence and with an ID (with picture).
Take into consideration that each bank has its own CIP and may ask for additional documentation.
You don’t have to make an appointment to open an acount, simply visit the bank during opening hours and ask to speak with an account manager. The following documents will be required when you go to open the account:
- An unexpired passport
- Your I-94 card (usually it is with your passport and visa)
- An alien identification card number
- Your social security number if you already have one.
- A utility bill or apartment lease to prove your address
- Your e-mail address.
- If you do an electronic transfer for the initial deposit from your current bank account, you will need the bank name, the bank routing number, your international ID bank account, and your Bank Identification Code (BIC).
Banks must report any interest you earn on your account to the Internal Revenue Service (IRS), even though you do not pay tax on this interest. Accordingly, the bank will ask for a Social Security Number (SSN) to anyone applying for an interest-bearing account. If you have applied for an SSN before you try to open a bank account, but do not yet have the number, you should take a copy of the receipt notice with you. The receipt notice can serve as additional documentation and help establish your identity. As soon as you receive your SSN, notify your bank.
Applying for a bank account online is possible and most of the US banks offer this service. The same information and documents are needed and you will be required to send photocopies of some documents. Even though this way is very convenient, we advise you to go in person to open your bank account.
Types of Accounts
The two basic types of accounts are: Checking and Savings.
Most checking accounts are free of fees but require you to carry a minimum balance or have an automatic deposit (pay transferred directly into your bank account by your employer). There is no interest paid on checking accounts.
Savings accounts can pay a small interest but may have a fee if the balance is lower than required. Minimum balances range from $100 to the thousands. The higher the minimum balance, the higher the interest rate.
For both accounts, the bank can provide ATM cards (automatic teller machine) upon request. The cards allow you to withdraw or deposit money at any ATM machine and pay for purchases at all debit/credit card machines. Most ATM cards also offer a credit card within the debit card to allow you to pay at credit only machines. No matter whether you chose debit or credit, the money will be deducted from your account immediately.
