How to open a bank account as a foreigner (India) in 2021?. Opening a bank account in the U.S. offers you security for your funds and a way to initiate a financial footprint in the U.S. But it is not as easy as it seems to be. It may seem like it takes only a few minutes for an American to open a bank account in the U.S.
It may take a lot longer for a non-American Citizen. As a non-US-Citizen, you will have many hurdles in your way if you want to start saving your dollars in the U.S.
Banking in the US is not as easy as it used to be. The US passed the Patriot Act after 9/11 to prevent the use of the financial system for criminal activity. Although it has far-reaching consequences, one of the biggest changes it brought was increased verification requirements.
If you are new to the U.S and need a place to stash your cash, so you can begin saving it. In this article, you will learn how to open a US bank account online from India? Why do you need to open US Bank Account? And What challenges do you face while opening a US bank account?
- Why would you need t -open us bank account as a foreigner(India) ?
- Why it is not easy to open a US bank account for a foreigner?
- What are the requirements to open a US bank account online from India?
- How to open a US bank account from India?
- Can I open a-U.S bank account from India without living there ?
Why would you need to open us bank account as a foreigner (India) ?
A US bank account for entrepreneurs & business owners can make wonders happen. Especially small or medium-sized businesses & startups abroad, looking for expansion of their business. Having Business Bank Accounts in the US can greatly help you reduce your international transaction fees, which can be very expensive.
Mostly the US entrepreneurs prefer using local methods of payment, including Automated Clearing House or sending checks, which offers them great comfort and speed.
# 1. For Immigration & Foreign Study
A US bank account can be a good deal for incoming immigrants & international students since it can help them make the transaction quickly and conveniently. Thus you can save yourself some time and some money.
# 2. For travel & online shopping in the U.S
If you are a frequent travel or online shop in the U.S, A US bank account can be helpful for you as it saves you a lot of time & money, all at leisure. Hence, you can experience the best of your trip and/or shopping.
Why it is not easy to open a US bank account for a foreigner?
After 9/11, the Patriot Act set strict regulations for foreigners opening US banks to avoid money laundering and minimize the probability of criminal activities induced by foreign nations. All banks must do document verification that the person applying for account opening is the same.
If you are a non-resident or non-citizen of the US, who does not have a Social Security number, your identification document (mainly passport) is required.
Non-US Citizens can apply for an ITIN (Individual Taxpayer Identification Number), one of the most commonly used alternative forms of identification. To obtain an ITIN, you are required to apply through the IRS.
Most of the nonresidents need to visit a bank branch to open an account. That implies that even if you can initiate the bank account opening procedure, you will probably be required to appear in person to complete the application procedure.
What are the requirements to open a US bank account online from India?
#1. Two forms of valid photo identification documents
You must have two forms of identity- passport (to verify nationality) & driving license/ student’s ID (to verify profession). Immigration documents like Work Visa, Student Visa are a must if you are an immigrant.
# 2. Employer Identification Number (EIN)
This is a number assigned to you (foreign business) by the IRS. You are required to open a business in the US or open a bank account.
# 3. Initial Deposit
Every bank requires you to make a minimum deposit in your respective bank account. The amount usually varies from one bank to another (ranging from $10-$100).
How to open a US bank account from India?
There are several ways to open US bank accounts from India which includes the following: In the first method, you need all the document like SSN, Passport and residency proof. Here are all details for the first method.
# 1. Set up a bank account online
It is probably the least used solution since it involves the longest process, and your account may not be approved in case of insufficient identity verification. Banks like Chase, Citibank, Silicon Valley Bank & Bank of America offer online bank accounts and/or online banking services.
However, each bank has set its criteria that involve the fulfillment of a set of conditions. So it’s best to contact the bank and find out the required documents to be submitted.
One common factor when setting up bank accounts online is having an Individual Taxpayer Identification Number (ITIN).
Moreover, having identification documents like Passports and Proof of Residency will boost your chances of getting accepted.
None of the above-mentioned banks are guaranteed to open you a bank account in the U.S, but it’s worth giving it a try. If the bank has a branch in your country, it’s your second best bet to visit the bank to accelerate the account opening procedure.
# 2. Go to an international bank’s branch
Several banks have branches inside and outside of the US, like HSBC or Barclays. It’s best in practice to head to your local branch and inquire about the process and documents that are required to complete the procedure of opening a bank account in that particular bank.
You must verify your identification and funds with the local branch if the US branch approves this. If not, you may be required to go to the US to get it done.
Many entrepreneurs prefer this option to get their accounts open before traveling to the US. In the end, going to the US to get your bank account set up is your best bet.
# 3. Travel to the US
This is the third option, which is the most common practice to get your US bank account.
Its commonality can be attributed to its simplicity and ease. It is the most guaranteed way to get approved and running. If you have the funds to travel and have US-based clients, moving to the US is what you need to do.
Certain banks like- Wells Fargo, Citibank can get this done for you quickly without much hassle and are known for their foreign policy.
For the banks to be able to trust you, security measures have been heightened. Some banks require a background check before approving your account.
You are required to verify your identity, reliability, residency, and business. For entrepreneurs, it is easier to set a bank account for your business if you have the documents required. Here is a list of all the documents required to open a bank account in the US:
Can I open a U.S bank account from India without living there ?
Yes. U.S bank account can be opened online from India without vising USA. Here, How to open a bank account without ssn.
- Through Aeldra US bank Account
- Through Zolve USA bank account
Here us the details of both the account.
#1. Aeldra USA bank Account Review
Aeldra Bank is a Silicon-valley based pioneering ‘digital neo bank’ that is offering a unique US bank account in liaison with Mastercard Global Debit Card that can be opened and operated from India, even before students get their study visa.
Students can fund their accounts and receive a debit card on their own to acquire a functional US bank account before leaving for the US.
It offers you a no-account that enables thousands of customers to save up to $500 in miscellaneous bank fees, foreign transactions, and foreign exchange mark-ups and forego carrying cash.
Benefits of Aeldra bank account
- It gives you the ability to transfer funds to a US account from India to protect against exchange rate depreciation.
- It also offers you multi-layered security for information, fraud protection, and protection from unauthorized transactions.
- In-app 24×7 services through calls or secure messages, from customer service representatives who understand India to US cross-border banking.
- Safety of FDIC-insured bank up to $250,000 in deposits through Blue Ridge Bank, which is a 128-year-old US bank.
- Access to AeldraPay real-time free peer-to-peer payments for splitting bills or renting with friends on the go.
- Warranty Extension on purchases made using Aeldra Credit Card & Debit Card.
What are the features of Aeldra bank account?
Simplified application procedure- using the website, you can open a bank account within 5 minutes.
- Zero Account Opening Fees
- Zero Monthly Fees
- Zero Foreign Transaction Fees
- Zero Overdraft Fees
- Zero Card Replacement Fees
How to open U.S. bank account with Aeldra
If you are U.S. residents or Indian citizens, then you can apply U.S. Bank account with Aeldra App. You need to download the Aeldra App and apply for U.S. bank account digitally from anywhere in the world. You do not need to visit a branch or provide a physical document for this account.
If you are a Indian citizens, then you do not require a U.S. Social Security Number (SSN), to apply this account. Just use your passport to open this account.
is aeldra bank account safe ?
Federal Deposit Insurance Corporation (FDIC) takes gurantee that all money saved in aeldra bank account is safe. Federal Deposit Insurance Corporation (FDIC) is an independent Instutation of the USA government that takes gurantee and protects against the loss of insured deposits if an FDIC-Insured bank fails. Aeldra is sister concern of Blue Ridge Bank which is member of Federal Deposit Insurance Corporation (FDIC) .
So, you all fund up-to $250,000 is saved and secured in aeldra bank account .
What is aeldra bank Minimum Balance ?
Aeldra bank offres Zero Balance account, there are no Minimum Balance that should be maintain to avoid bank charges. Also there are , no overdraft fees, free incoming international wire transfers, zero foreign currency markup, Zero Account opening charges and Zero Card Replacement fees.
Is Aeldra legal in India?
Yes, aeldra bank complay all the rules and regulation set by the RBI. All the transfer, payment from India to Indiaare subject to the guidelines of the RBI’s Liberalized Remittance Scheme (LRS). The aeldra bank also maintain Know-your-customer (KYC) and Anti-Money Laundering (AML) which as per compliance of RBI, so Aeldra totaly legal in India.
Eligibility to open Aeldra Bank account ?
Below are the Eligibility to U.S. Aeldra Bank account .
- U.S. residents with a U.S. Social Security Number or an Indian Passport
- Indian residents with an Indian passport and Aadhaar Number.
What is aeldra bank debit card ?
Aeldra Debit has been hosted on Master Card platform. All the customet of Aeldra Bank can get Aeldra Debit Mastercard. However, Indian resident can not get Physical Debit Card. Currently Physical Debit card are availabel only to U.S resident.
#2. Open an full American bank account online with Zolve
Solve is a San Francisco and Bangalore-based global bank aiming to seamlessly make financial systems and transactions across borders. If you are a student heading out to the US sometime, Zolve solves your financial issues as an international student of the US since it offers you a considerable range of perks & advantages.
Some of the most prominent perks include- No Annual Fees, FDIC-insured bank account, simplified bank account opening procedure, etc.
Benefits of Zolve US Bank account
- No Annual Fees
- No Foreign Transaction Fees
- Introductory APR of 0% valid for 6 months
- First late payment fees is waived off
- Membership Rewards at major global fashion brands (like H&M), retail stores (like Amazon), and wholesale clubs (like Costco).
- FDIC insured bank accounts.
- If you are an immigrant, you do not require Credit History to apply for it. Hence, it can be instrumental for you to increase your credit score, thereby making you more creditworthy.
Features of Zolve US Bank account
FDIC insured bank account- that covers your account for a sum of $250,000.
- Simplified procedure of bank account opening. You can open a bank account within 10 minutes.
- Credit Limit of $5,000, which increases to $10,000 as you reach the US.
- No Joining Fees
- No Annual Fees
- No Foreign Transaction Fees
- First late payment waived off
- 0% introductory APR for first 6 months
- Regular APR of 14.99% (11.74%+WSJ Prime Rate)
- Zero Card Replacement Fees.
Do you have any questions? Please free to ask in the comment box below.