Bank Account

Last Updated on 2023-06-25

It is highly recommended and practical for individuals residing in the United States for an extended period of time to open a bank account. Through your bank account, you can use the convenience of various payment methods such as checks, direct deposits, and services like Zelle, as well as access a wide range of financial services. This article aims to provide an overview of the necessary preparations and important factors to consider when opening a U.S. bank account. However, it is important to note that the requirements and procedures may vary depending on the specific bank and individual circumstances. Therefore, it is strongly advised to consult the official website of the respective bank for the most up-to-date information before initiating the account opening process.

Account Types Overview

All bank accounts consist of two sets of numbers:

1. Routing Number: The routing number, also known as the ABA (American Bankers Association) routing number, is a nine-digit code that identifies the financial institution where your account is held. It is used for routing funds between banks during transactions, such as electronic transfers, direct deposits, and bill payments.
2. Account Number: The account number is a unique identification number assigned to your bank account. It helps identify your specific account within the bank’s system. You may be asked to provide this number for various banking transactions, such as setting up direct deposits or making electronic transfers.

These two sets of numbers are essential for conducting various banking activities and ensuring accurate and secure transactions. It’s important to keep them confidential and only share them with authorized parties or when required for legitimate banking purposes.

Bank accounts in the United States typically come in various types, each with its own features and purposes. Here are some common types of bank accounts:

1. Checking Account: A checking account is designed for everyday transactions and provides easy access to funds. It allows you to write checks, make electronic payments, use a debit card, and withdraw cash from ATMs. This account is suitable for managing day-to-day expenses and often comes with features like online banking and bill payment services. The interest rates are extremely low and can be ignored.
2. Savings Account: A savings account is intended for depositing and saving money. A limited number of monthly transfers (approximately 6 times) with penalties for exceeding the limit. This account is not intended for use with a debit card or personal checks, and funds are not automatically withdrawn from the savings account when the checking account balance is depleted. It offers higher security and is suitable for storing larger amounts of money. It typically earns interest on the balance, although the interest rates are generally lower compared to other investment options. Savings accounts are suitable for setting aside funds for emergencies, future goals, or short-term savings.
3. Certificate of Deposit (CD): A CD is a fixed-term deposit account that offers a higher interest rate than regular savings accounts. It requires you to deposit a specific amount of money for a fixed period, usually ranging from a few months to several years. Withdrawals before the maturity date may result in penalties. CDs are suitable for individuals looking for a low-risk investment with a guaranteed return.
4. Individual Retirement Account (IRA): An IRA is a retirement savings account that offers tax advantages. There are different types of IRAs, including Traditional IRAs and Roth IRAs, each with specific rules regarding contributions, tax deductions, and withdrawals. IRAs are designed to help individuals save for retirement and may have penalties for early withdrawals.

5 Steps to Open Bank Accounts

The account opening process is as follows:

1. Make an Online Appointment
   • Schedule an appointment online, providing your U.S. mobile phone number. This helps avoid unnecessary trips to the bank, especially during the busy back-to-school period.
2. Prepare Account Opening Documents
   Required documents, including:
   • Passport with U.S. visa
   • I-20
   • I-94
   • Address, email, and contact phone number
   • Student ID (not necessary)
   • Social Security Number (not necessary)
   • Some banks, such as Citibank, may require a second identification document, such as a Taiwan driver’s license.
3. Complete Tax Form
   It’s important to remind the banker to provide the correct form. The definition of a nonresident alien refers to the Tax section.
   • Nonresident aliens must complete Form W-8 BEN during the account opening process
   • U.S. citizens or resident foreigners fill out Form W-8.
4. Receive Debit Card
   Your debit card will be sent to the address provided approximately one week after opening the account. It can be activated online or through customer service.
   • Chase: The PIN code will be mailed along with the debit card to the address provided.
   • PNC: The PIN code can be set at the branch during account opening.
5. Set Up Online Banking:
   Enable online banking by following the instructions sent via email or SMS from the bank. Download the bank’s mobile app.
   • Chase: Request online banking credentials from the banker.
   • PNC: A verification code will be sent to the address provided approximately one week after opening the account.

Precautions

• Remember your signature style, as it will affect the processing of checks.
• The bank will provide a few checks after opening the account. If you need a full checkbook, there may be a fee to purchase it.
• It is recommended to ask the assisting banker for their business card. If you encounter issues with online banking or have other questions, contacting them directly usually leads to a faster resolution.
• In the United States, card payments are common, and cash is used less frequently. Online banking is convenient, allowing you to deposit small checks via mobile. As a result, the need for ATMs or physical bank visits is not as frequent.

It’s important to note that the specific requirements and processes may vary between banks and individual circumstances. It is advisable to consult the bank’s official website or contact their customer service for the most accurate and up-to-date information.

Best Banks in Pittsburgh

Bank of America

Bank of America has established branches in Pittsburgh since 2019, although the number of branches may be relatively limited. However, it offers nationwide coverage.

• Advantage SafteBalance Banking (Checking account) with a $4.95/month maintenance fee, waived for students under 24 years old.
• Advantage Plus Banking (Checking account) with a $12/month maintenance fee, waived with a $1,500 account balance or for students under 24 years old.
• Bank of America is a popular choice for many because they offer credit card applications directly at the branch, regardless of whether you have an SSN or credit history. Please refer to the Credit Card section for more details.

Chase

Chase has established branches in Pittsburgh since 2019, with relatively fewer branches in the area but with high nationwide coverage.

• Student accounts are available for those under 25 years old, with a maximum of 5 years of waived maintenance fees until graduation. $100 account opening bonus.
• Both Checking and Saving accounts for regular accounts offer $100 to $300 account opening bonuses. Basic Checking accounts have the maintenance fee waived with a $1,500 balance.
• Opening an account with Chase can be helpful for future Chase credit card applications. Chase credit cards are highly regarded but generally require a good and longer credit history.

Chase account opening bonuses
Checking account bonuses typically require direct deposits, and Saving account bonuses often require maintaining a certain amount for a specified period (e.g., depositing $15,000 and maintaining it for 90 days). Coupons are needed, and the account opening bonus terms may change over time.

PNC

PNC Financial Services Group originated in Pittsburgh and has a dominant presence in terms of branch locations and ATMs near campuses.

• Accounts are divided into Spend, Reserve, and Growth. Spend and Growth correspond to Checking and Savings accounts, respectively. The Reserve Account functions between a Checking and Savings account, with no withdrawal limits but also not directly accessible for spending.
• Any student can open a student account, with a maximum of 5 years of waived maintenance fees. Spend Accounts are eligible for one fee waiver per semester for international wire transfers.
• PNC branch locations are primarily concentrated on the East Coast, so there may be a disadvantage in terms of ATMs when traveling to West Coast cities.

CTBC

CTBC Bank has 19 branches in California, New York, and New Jersey, making it the fourth-largest Chinese bank in the United States.

• In-person account opening is required.
• Offers free global wire transfers.

Frequently Asked Questions