Opening your first US bank account
What to bring, which fees to avoid, and why a bank account saves you money.
3 min read
Check-cashing shops charge 1% to 5% of every check. A bank account does the same job for free.
Here is what it costs to cash a $3,000 paycheck every month:
What to bring
- A photo ID from a government. Many banks accept a foreign passport.
- Proof of address: a lease, a utility bill, or official mail.
- A tax ID number: an SSN or an ITIN. Many banks accept either one.
Each bank has its own rules. If one bank says no, try another. Credit unions and community banks are often more flexible. Some have accounts made for people new to the US.
SSN or ITIN: which number you needOpen two accounts
| Checking | Savings | |
|---|---|---|
| For your paycheck and spending | ||
| For money you are saving | ||
| Comes with a debit card | ||
| Earns interest | Little or none | Yes |
Keeping the two apart is the simplest budget there is. Money in savings is money you don't spend by accident.
Fees to ask about
- Monthly fees. Banks often drop them if your paycheck goes in by direct deposit. Ask how to avoid yours.
- Overdraft fees. You can usually turn these off. A declined card is better than a $35 fee.
- ATM fees. Another bank's ATM can charge you twice: once by your bank, and once by the ATM's owner.
Your money is insured
If your bank fails, the US government pays you back. This covers up to $250,000 per person, per bank. Look for the FDIC logo at a bank, or NCUA at a credit union.
Once your paycheck goes into your account, every other money step gets easier. This app can also show your real balances.