How foreigners can open a bank account in the US

If you are considering purchasing U.S. real estate, opening a bank account in the U.S. will make the transaction smoother.

However, there are probably many people who don't know how.

Therefore, this time we will explain the documents and procedures required when opening a bank account in the U.S.

We will also talk about how to open an account while living in Japan.

What are the documents needed to open a bank account in the United States?

First, let's look at the documents required to open an account in the United States:

US Address

You may feel helpless when you learn that you need a U.S. address to open a bank account. 

If you have no local address, you can try the following methods:

●Use addresses such as relatives and acquaintances living in the United States

●Use the vendor's address relocation service

If you are actually living in the United States and you have a resident's certificate in Japan, you can prove that you are living at that address by submitting a utility bill or receipt.

Most people reading this article aren't US residents so what we can do is to use the address of an acquaintance who lives in America, or to use the forwarding service of the address.

However, the address forwarding service is not a certificate of address, so some banks may not allow it.

It is important to note that a post office box is not accepted as an address, so you need to be careful.

Social Security Number (SSN) and Taxpayer Identification Number (ITIN)

Social Security Numbers are given to U.S. citizens and long-term residents.

If you are not a US citizen or a permanent resident, an SSN can not be issued.

However, it may be possible to get a tax identification number (ITIN)

Tax identification numbers are issued by filing a tax return in the United States.

Document for identification of the applicant

A Passport issued or a facial photographic identity certificate such as a driver's license are the most common forms of Photo ID. 

The passport is the most reliable.

Points to consider when opening a U.S. bank account

Next, we will explain points to consider when opening a bank account in the United States.

There are two types of accounts in the United States.

U.S. bank accounts consist of two broad categories: "Checking Account" in checking accounts and "Savings Account" in ordinary accounts.

In Japan, ordinary deposits are common, but in the United States, checking accounts are often used.

When you open an account in the United States, open a checking account.

Because the United States often uses a personal check, checking is more convenient.

 Choosing a bank

Banks in the US vary by state and region.

When opening a bank account in the U.S. for real estate investment, it is advisable to open an account in the State where the investment property is located.

In addition, there are costs involved to maintain an account in the U.S.

Costs and fees vary depending on the number of checks used, interest, minimum deposit balance, etc., but it seems that many banks charge around $4 to $12 a month.

Unlike Japanese banks, U.S. banks do not charge fees when withdrawing money at ATMs.

However, there will be a commission if you withdraw money from other banks.

Below, we will introduce several major U.S. banks:

Chase Bank

A bank affiliated with JPMorgan that is popular in New York, Illinois and Washington.

With the largest number of ATMs, it is convenient and of highly regarded.

●Account maintenance costs: $12~

●Internet Banking (Applications compatible)

●Chase Pay available

●Fees for remittance to other banks only when using Zelle

Bank of America

The bank with the highest number of deposits in the U.S. and the ability to open accounts online with a foreign passport makes this bank popular with many foreign students and employees on assignment to the U.S.

●Account maintenance costs: $4.95~

●Internet Banking (Applications compatible)

●Can be remitted using Zelle

●There is an online real chat inquiry function.

Wells Fargo

It is the most popular bank in many states in the United States.

The number of ATMs is high and convenience is also high.

Moreover, if you use their app, you can withdraw cash from the ATM even without a cash card or debit card.

●Account maintenance costs: $10-

●Internet Banking (Applications compatible)

●Can be remitted using Zelle

Citi Bank

It is the largest bank in the world and has branches in Japan.

Characteristically, there is no need for a deposit when opening an account.

●Account maintenance costs: $10-

●Internet Banking (Applications compatible)

How to open a bank account in the United States from  Japan

Is it possible to open an account in the U.S. while living in Japan with a residence certificate in Japan?

The purpose of creating an account in the U.S. while residing in Japan may be because it is necessary for work or for the remittance of rent for real estate investment.

When purchasing U.S. real estate from Japan, normally you would go to the property and view it personally. You could also open a bank account at the same time.

However, what should you do when purchasing real estate in the U.S. without looking at the property.

Can you open an account without physically being present in the US?

In fact, when purchasing real estate in the United States, you don't need to make an account in the United States.

However, it is more convenient to open one for remitting rent, etc.

As mentioned above, to make an account in the U.S. while residing in Japan, an American address and a taxpayer identification number are required.

In addition, if you have an account at Mitsubishi UFJ Bank, you can make an account relatively easily by using the Union Bank.

Please use the "California Account Program" service to apply in Japanese.

Let me now explain the flow of opening an account at Union Bank.

Open a Mitsubishi UFJ bank account

Let's assume that you already have an account at Mitsubishi UFJ Bank and are eligible to open an account at Union Bank.

If you don't have an account at Mitsubishi UFJ Bank, first open an account.

Opening an account is convenient because of the "Smart Account Opening" that can be operated from a smartphone app.

 A Japanese account at Mitsubishi UFJ Bank can be maintained for ¥300 per month while staying overseas, so many Japanese people working overseas use this bank.

Download, fill in and send the application form

There are two types of accounts: Checking Account and Savings Account, and it is convenient to apply for both. 

If you want to save money for the remittance of rent, a "Savings Account" with interest is recommended.

Even though it doesn't accrue much interest, a "Checking Account"" is convenient.

Arrange the necessary documents

●Intermediation request form

●Identification paper

Identification documents can be chosen from the list below:

●Driver's License

●Passport

●Basic resident ledger card (with photograph)

●Individual My Number Card

●Driving history certificate

●Residence Card or Special Permanent Resident Certificate

●Credit card

●Health insurance card

Send the above documents and receive notice of completion of opening the account in about a week.

After about one week, your ATM card, PIN, and access code will be delivered to you, so you can register online.

In Conclusion

In this article, we gave you the documents and points necessary to open an account in the U.S.

A variety of documents and procedures are required to open an account in the U.S.

However, if you open an account at Union Bank, which is a subsidiary of Mitsubishi UFJ Bank, you can open an account in the U.S. even if you live in Japan.

When you invest in US real estate, it is advisable to open a bank account in the United States to facilitate smooth transactions.