Undocumented Immigrants Opening U.S Bank Accounts
Most banks have traditionally only allowed undocumented immigrants to open bank accounts after providing a valid Social Security number as their primary identification. This requirement has left many undocumented immigrants relying on secondary sources like check-cashing outlets to cash their paychecks, even though they charge exorbitant fees.
IRS Taxpayer Identification Numbers (TIN)
Banks now allow undocumented workers to open checking and savings accounts and even apply for credit cards and home mortgages using their Taxpayer Identification Number, which the Internal Revenue Service issues.
Undocumented Workers Pay Taxes
The rationale being if undocumented immigrants are paying taxes, they should also enjoy the benefit of banking services, including the right to earn credit. Yet many undocumented immigrants still feel uncomfortable with using traditional US banks.
Fear and Uncertainty Still Dominate the Undocumented Worker
According to a New York survey, almost one-third of those undocumented immigrants surveyed claimed they prefer check-cashing or money wire transfer agencies over banks.
The reason? Some say that while check-cashing services charge high transaction fees, they stay open later and have bilingual employees. Others say they fear being identified as undocumented and risk being arrested and deported.
Good Reasons To Open a Bank Account
Personal Safety
A bank account is a safe place to store your money. Even in the unlikely event, your bank is robbed, the money is insured and will be replaced. And carrying less cash means you’re not as vulnerable to thieves on the street.
Establish A Credit History
Opening A bank account helps immigrants establish a financial history. In most cases, a bank account is required to open a credit card, buy a home or borrow money to open a business. This requires first establishing a credit history. The same is true for citizens of the US.
You No Longer Need A Social Security Number
As stated, many banks and credit unions no longer require a social security number to open a bank account. Many of the larger banks will accept an IRS-issued Taxpayer Identification Number instead of a social security number.
Banks Do Require Proof of Identity
Banks must verify that you are who you say you are. To do so, banks will usually require you to show them two of the following types of documents:
- Proof of identity
- Unexpired passport
- Government-issued driver’s license (including foreign licenses)
- Consular ID card
- Birth certificate
Proof of Address
Some banks and credit unions require more, such as having the person bring proof of their address, such as a current utility bill and a copy of their lease.
While some banks still require a social security number, larger banks such as Chase, Wells Fargo, and Bank of America now allow non-residents to open checking and savings accounts.
Progressive Banks Reaching Out To Immigrant Populations
Today banks of all sizes are reaching out to immigrant customers for their business. Banks are also developing new marketing products to culturally and financially attract immigrant interest in the hope of earning their trust and business.
Marketing experts believe that greater financial access can be achieved if banks provide more of the products that immigrants want, like bilingual check-cashing and bill payment systems. Taking it a step further, some banks have begun working with employers to strengthen their outreach to immigrants who are assimilating into our financial systems and are now ready for more sophisticated banking services.
If you are an undocumented worker, there are now good reasons to open a U.S .bank account, and there are established banks that will welcome you and help you with the process.
