Can You Open a Bank Account With an ITIN? Rules & Workarounds

Yes, it is absolutely possible to open a bank account with an ITIN in the United States. Many banks and credit unions across the country accept an Individual Taxpayer Identification Number (ITIN) as a valid form of tax identification, which is a key requirement for opening a financial account. While specific policies can vary by institution, U.S. banking regulations allow for this, provided you can also furnish acceptable identification.

This guide is for informational purposes only and is not legal advice. The best way to get accurate information for your situation is to check with the financial institution directly. If your goal is homeownership, establishing a banking history now can make the mortgage application process smoother later.

What Is an ITIN and Why Banks Accept It

An ITIN is a tax-processing number issued by the IRS to people who are not eligible for a Social Security Number (SSN). Its sole purpose is to help individuals comply with U.S. tax laws and to process tax returns and payments. An ITIN is not a form of immigration status and does not authorize employment.

Under the U.S. Customer Identification Program (CIP), banks are required to verify a person's identity before opening a new account. While an SSN is the most common taxpayer identification, the law also accepts other unique identifying numbers, like an ITIN, as long as the bank can confirm the individual's identity with valid documents.

2025 Rules: What Banks Typically Require

U.S. banks must follow strict "Know Your Customer" (KYC) rules, which are part of the broader CIP. These rules require the bank to verify your identity, physical address, and date of birth and to screen for sanctions. When you open a bank account with an ITIN, you'll need to provide documentation to fulfill these requirements.

Acceptable Primary IDs

Most banks will accept one or more of these documents as a valid form of identification:

1. Foreign Passport: This is often the most widely accepted form of ID.
2. Matrícula Consular: Many consulates in the U.S. issue these, and they are frequently used as a primary ID at community banks and credit unions.
3. State-issued Driver's License or ID Card: If you have one, this is a great form of ID.
4. Foreign Passport with a U.S. Visa: This is another common form of identification for non-residents.

Proof of Address

You also need to show proof of a valid physical address in the United States. You can usually use documents like:

1. A recent utility bill (gas, electric, water) in your name
2. A rental agreement or lease
3. A bank or credit card statement from another institution
4. An official letter from your employer

Additional Documents Some Institutions Request

Depending on the bank's policy, you may be asked for extra documents, such as a second form of ID, a copy of your ITIN assignment letter from the IRS, or specific business formation documents if you are opening a business account.

If you have questions about which documents are best for your situation, our team is here to help you get ready for a mortgage application later. Talk to a specialist serving New York, Massachusetts, Florida, or Connecticut.

Step-by-Step: How to Open a Bank Account With an ITIN

Once you have your documents ready, the process of opening an ITIN bank account is straightforward.

1. Find a Welcoming Institution: Look for community banks, local credit unions, or even certain online-only banks. These institutions are often more familiar with alternative documentation.
2. Confirm the Policy: Before you go to a branch or start an online application, call or check the bank's website to see what specific documents they require for an ITIN holder.
3. Gather Your Documents: Collect your primary ID, proof of address, and your ITIN letter.
4. Apply: You can apply in person at a branch or, in some cases, complete the application online.
5. Fund the Account: You'll typically need an initial deposit.
6. Maintain Consistent Deposits: Once the account is open, establish a consistent deposit history, this is a key factor for qualifying for a future bank-statement mortgage or other home loans.

Checking vs. Savings vs. Business Accounts (With ITIN)

You can open various types of accounts using your ITIN, each with a different purpose.

Personal Checking and Savings

A personal checking account is perfect for everyday transactions. You’ll get a debit card, and you can set up direct deposit for your paycheck. A savings account is for long-term goals. Both are crucial for building a documented financial history.

Business Accounts

If you run your own business, you'll need a business bank account with an ITIN. To open one, you'll likely need your business formation documents and an Employer Identification Number (EIN). Banks will also perform KYC on all beneficial owners to verify their identities.

Joint Accounts

If you have a spouse or partner with an SSN, you may be able to open a joint account. This can sometimes simplify the process, as the co-owner’s SSN satisfies the taxpayer identification requirement.

What Kind of Institution Is Best?

The best choice for you depends on what you are looking for. Here is a general comparison of institution types.

1. Credit Unions: These are non-profit and often have a strong community focus. They tend to be more welcoming to ITIN holders and are a great option for people who want personalized service. To join, you may need to live in a specific area or be part of a certain group.
2. Community Banks: Smaller than national banks, community banks are another great choice. They often have more flexible policies and are a good place to build a relationship with a banker who understands your situation.
3. Large National Banks: These banks have many branches and offer a wide range of services, but their policies can be more rigid and less flexible for ITIN holders. Their policies are often dictated from a corporate level, which means less room for discretion.
4. Online-only Banks: These banks don't have physical branches. They can offer lower fees and higher interest rates. Some have explicit policies that accept ITINs, but you'll need to confirm their specific ID requirements for online verification.

Common Reasons ITIN Applications Get Rejected (and How to Fix)

It can be frustrating when an application is rejected, but it's often due to a simple mistake. Here are some of the most common issues and how you can fix them:

1. Mistake: Your name on your ID doesn't exactly match your name on the application.
2. Fix: Make sure the spelling and format of your name are identical across all documents.
3. Mistake: Your passport or other ID is expired.
4. Fix: Ensure all your identification documents are current and valid.
5. Mistake: The address on your ID doesn't match the proof of address document.
6. Fix: Make sure your documents show the same physical address.
7. Mistake: You don't have a utility bill or other proof of address in your name.
8. Fix: Try to get a lease agreement, a letter from your employer, or a bank statement in your name to prove your address.
9. Mistake: Your business paperwork is incomplete or confusing.
10. Fix: Ensure you have all the necessary legal documents, including your EIN and business formation papers, prepared before you apply.

Workarounds If You're Struggling to Qualify

If you run into trouble, there are other ways to build a banking history.

1. Try a different institution: If a large national bank says no, a local credit union or community bank might say yes. Policies can vary widely.
2. Use a co-owner: If you have a friend or family member with an SSN and a good credit history, you can explore opening a joint account with them.
3. Start with something simpler: Some institutions might allow you to open a debit-only account first and then upgrade to a full checking account once they are familiar with you.
4. Get documents in your name: Make an effort to get utility bills or a rental agreement in your name, this is a powerful tool to prove a verifiable address.

How an ITIN Bank Account Helps You Qualify for a Mortgage

Building a banking history now is one of the most important things you can do to prepare for a mortgage in the future. Lenders, including our team at Prysma, will look for a verifiable trail of your finances.

An ITIN bank account provides a clear and consistent record of your income and savings. This helps us verify your deposits for a bank-statement mortgage, see your assets for an asset-depletion loan, or identify predictable income flows for other Non-QM mortgage options. Our team helps you plan your banking documentation now so you can apply with confidence later.

State-by-State Notes

Connecticut

1. Banking landscape: Connecticut has a good mix of large national banks and smaller community banks.
2. Pro tip: The state also has many local credit unions that are often great for ITIN holders.

Florida

1. Banking landscape: Florida’s banking scene is diverse, with lots of national and regional banks.
2. Pro tip: Many community banks in major metro areas like Orlando and Miami are very familiar with providing services to a diverse clientele.

Massachusetts

1. Banking landscape: Massachusetts has a strong presence of credit unions and local savings banks.
2. Pro tip: These institutions are often the best place to start your search for an ITIN-friendly bank.

New York

1. Banking landscape: New York is a huge banking hub with countless options.
2. Pro tip: Look for a community bank or credit union that serves a local, immigrant-friendly community in your area.

Talk to a specialist serving Connecticut, Florida, Massachusetts, or New York.

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Prysma has established itself as a recognized leader in ITIN/Tax ID Loans, serving non-US citizen families across Connecticut, Florida, Massachusetts, New Jersey, New York, Pennsylvania, and Texas. Our experienced loan professionals personally meet with each client to identify optimal rates and financing options for your specific situation.

Don't let uncertainty about current mortgage rates delay your homeownership dreams. Contact Prysma today to schedule a personalized consultation and take your first step toward owning a home with a lender who truly understands your community and goals. 

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FAQs

1. Can undocumented immigrants open a bank account with an ITIN?

Yes. U.S. banking regulations allow for this, provided you have an ITIN and can meet the bank's other identification and documentation requirements. An ITIN is a tax ID, not a form of immigration status.

1. What IDs do I need besides an ITIN?

You will typically need a primary form of photo identification, like a foreign passport or a Matricula Consular, as well as a document that proves your U.S. physical address, like a utility bill.

1. Can I open a bank account online with an ITIN?

Yes, some online-only banks and neobanks allow you to open an account with an ITIN. However, you should check their specific requirements, as the online verification process can be different from in-person applications.

1. Do I need a U.S. address?

Yes, all U.S. banks require a physical U.S. address to open an account. A P.O. Box is not sufficient, as it doesn't meet the CIP requirement to verify your location.

1. Can I open a business bank account with an ITIN?

Yes, you can open a business bank account with an ITIN and other necessary business documents, such as an EIN and your business formation papers.

1. Will banks pull my credit?

While opening a bank account typically does not require a credit check, some banks might perform a soft pull to verify your identity. This does not affect your credit score.

1. How much is the initial deposit?

The amount of the initial deposit varies by institution. Some accounts can be opened with as little as $25, while others may require a higher amount to waive monthly fees.

1. Are there risks to using cash deposits?

When you apply for a future mortgage, large, unverified cash deposits in your bank account might be questioned. It is better to have a consistent record of predictable deposits, such as paychecks or transfers, as this strengthens your application.

Prysma is an Equal Housing Lender. NMLS #2250. Disclaimer: Policies vary by institution; always verify requirements with your chosen bank or credit union.