The advantages of opening a checking account in the United States

The advantages of opening a checking account in the United States

Many undocumented immigrants rule out the idea of opening an account because of their immigration status and fear of retaliation. Today we tell you why it is important to do so. Opening a checking account or current account (Checking account) offers you several advantages:

• You can easily open it at any bank without many requirements
• You can start establishing a credit history
• You have a safe place to keep your money, especially if you are an immigrant
• It is perfect for making payments or carrying out common transactions without withdrawal restrictions, such as receiving a salary, paying rent or paying for utilities.
• It gives you access to a debit card and withdraw money from ATMs of the same bank without paying fees (or pay a small fee at an ATM of another bank) and transfer money between accounts. You can also use online services.
• Allows you to pay with checks. This is important since without a checking account you must resort to check cashing services or debit cards that generally charge high fees (3 or 4%) for cashing checks and paying bills.

What requirements do you need to open a checking account? Requirements may vary by state, bank, and customer, but general requirements are:

• Passport and ID card or driving license
• Social security number (or ITIN number if you do not have Social Security)
• Documents to prove a physical address, such as a recent rental agreement, utility bill, or bank statement
• Immigration documents
• Sometimes it is necessary to make an initial deposit

What happens in the case of an immigrant without documents?

Many undocumented immigrants rule out the idea of opening an account because of their immigration status and fear of retaliation. In this way, they prefer to pay abusive fees and keep the money they earn in paper bags or under the mattress. In fact, there are news reports of robberies targeting immigrants on payday and with enough cash in their pockets. These workers are seen as “walking ATMs.”

However, many undocumented immigrants decide to open an account because of the advantages it represents. Not only does it allow them to start building a credit history, but it also allows them to do all kinds of tasks like renting an apartment, paying bills, and getting phone service more cheaply. There are even people who must move to another state for work or study reasons, and being able to do all these things without a bank account would be very complicated.

How do you obtain an ITIN? Many banks and credit associations now allow their customers to open an account (or even obtain a credit card or secured card) with an ITIN number if they do not have a social security number. To obtain this, you must complete a special form and submit proof of identity with your federal tax return. It is mailed or taken to an IRS office for processing.

Remember that if your legal status is pending, you must apply as a Non Immigrant. Regional banks offer better benefits in relation to interest and account maintenance payments (many of them do not charge for this), but if you ever decide to move to another state, it is very likely that you will not find offices there. Some banks such as Bank of America, Chase, Wells Fargo, Capital One or TD bank can help you open your checking account. You can also try a credit union like www.mycreditunion.gov