We delve into the nuances of opening a US bank account from the Caribbean. This guide is structured to provide clarity and direction for individuals and businesses that need to send and receive money from clients, friends, and family abroad.

Why a US Bank Account?

A US bank account offers a strategic advantage, mitigating the foreign exchange issue by providing unrestricted access to US dollars (USD). This is crucial for businesses engaging in online transactions, individuals who travel frequently, and those receiving funds from abroad. The benefits are clear: full fund accessibility; international card usage; and simpler, cost-effective money transfers from overseas.

Also, if you want to have full access to payment platforms like PayPal or Stripe, then having a US account will go a long way.

Opening a Personal US bank account

Requirements and Process

To open a personal US bank account, physical presence in the US is mandatory. Prospective account holders can approach banks like Bank of America, Chase, TD, Citibank, and Wells Fargo, which offer non-citizen accounts. Essential requirements include two forms of ID (for example, passport and driver’s licence) and proof of a US address. Proof of address can be established through various means, such as being added to a family member’s or friend’s bill (think phone bill). You can have a family member or friend draft a lease agreement to show that you live there (banks accept lease agreements) or you can use the USPS change of address website. You would input an address from a family member or friend and then give them a new address for where you would like to receive your mail, preferably another family member or friend that would accept mail on your behalf. USPS will then send an official change of address document to the new address listed, which you can use when opening a bank account. The cost is US$1.10 online.

In the case of Citibank, they will open the account with a utility bill from your home country as well.

The banks in the US do not require an appointment and you can walk in with the necessary documents and open a US account. You do not need an Social Security Number (SSN) to open a non-citizens US account.

Business Accounts:

Businesses can remotely set up US accounts through third-party companies that handle the business registration and banking processes. These entities assist in obtaining an Employer Identification Number (EIN) number, which gives you more flexibility in banking services. Options include Start Global, First Base, Jump Start Filings, and Doola, with Mercury Digital Bank recommended for its digital banking flexibility. With the EIN number, you can open a bank account with any institution of your choice.

Funding Your US Account

Funding mechanisms are vital for maintaining liquidity in your US account. Options include Western Union Direct for direct bank transfers. Once you have the name, address, routing number, and account number, you can directly deposit cash into your US accounts, make cash deposits during US visits, and receive online client payments (think PayPal, Stripe,
Zelle, Cashapp, Payoneer, and Wise).

These methods ensure continuous access to USD. Every month, I send money to my US bank account so that I am never in a position in which I don’t have USD when I need to conduct business online or when I travel.

The Impact

We know that living in the Caribbean there are tools and platforms to which we do not have access because the platforms we may be trying to use require us to have a US bank account. For us to expand our offerings to the world and participate in the global economy, we need to have the right tools in place for us to transact business with as minimal friction as possible.

Keron Rose is a digital strategist who works with businesses to build their digital presence and monetise their platforms. Learn more at KeronRose.com or listen to the Digipreneur FM podcast on Apple podcast, Spotify, or Google podcasts.