What documents do I need to open a bank account?

Most banks ask for a government-issued photo ID, such as a passport or driver’s license, along with proof of address, like a utility bill or lease agreement. Some banks also accept an ITIN in place of a Social Security number. Because requirements vary by bank, it’s worth calling ahead or checking the bank’s website before visiting a branch.

What’s the difference between a checking account and a savings account?

A checking account is designed for everyday transactions, like paying bills or making purchases, and typically comes with a debit card. A savings account is meant for money not needed right away, and it usually earns a small amount of interest but may limit how often withdrawals can be made.

Can I receive an international money transfer without a bank account?

Yes. Without a bank account, money sent internationally can still be received through alternative delivery methods such as cash pickup, a mobile wallet, or home delivery, depending on what’s available in a specific country. Bank deposit is simply one of several ways money can arrive.

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Bank account: the basics for newcomers to the U.S. banking system

Key takeaways
- A bank account is a financial account held at a bank or credit union that allows storing, sending, and receiving money.
- The two most common personal account types are checking accounts, for everyday spending, and savings accounts, for money set aside.
- Having a bank account gives access to direct deposit, online banking, and lower-cost ways to send or receive an international transfer.
- Opening a bank account in the United States typically requires identification and proof of address, though requirements vary by bank.
- A recipient without a bank account can still receive money through other delivery methods, such as cash pickup or a mobile wallet.

A bank account is a financial account held at a bank or credit union that allows storing, sending, and receiving money. Here’s what to know, especially when setting up a first account in a new country.

What is a bank account?

A bank account is a financial account held at a bank or credit union for depositing, withdrawing, and managing money. Most banks offer several account types, most commonly checking accounts for everyday transactions and savings accounts for money set aside, and both are typically protected by federal deposit insurance⁠(opens in new window) up to applicable limits.

Why having a bank account matters for international transfers

A bank account plays two roles for many people sending or receiving money internationally: it’s often the source of the funds being sent, and it can also be the destination where a recipient collects them.

On the sending side, linking a checking account allows funding a transfer directly, without needing a debit or credit card, and typically at a lower cost than a card-funded transfer. On the receiving side, having a bank account in the recipient’s country means money can be delivered straight to it as a bank deposit, one of the more common delivery methods⁠(opens in new window) Remitly offers across its network of 170+ countries worldwide.

A bank account also opens up broader financial access that supports this kind of activity over time:

Direct deposit, so income like a paycheck or benefit payment lands in the account automatically.
Online and mobile banking, for checking balances, paying bills, and moving money without visiting a branch.
Debit cards, which draw directly from the account balance for purchases and cash withdrawals.
A credit history foundation, since many financial products down the line depend on an established banking relationship.

Not every recipient has a bank account, and that’s expected. That is why alternative delivery methods exist, including cash pickup at an agent location, delivery to a mobile wallet, or in some corridors, home delivery. Choosing the right delivery method comes down to what a recipient actually has access to, not what might be assumed.

Common mistakes with bank accounts

Not asking about monthly fees before opening an account. Some accounts charge a maintenance fee unless a minimum balance is met or direct deposit is set up.
Giving out the wrong account number for a deposit or transfer. A single incorrect digit can send money to the wrong account or cause a transfer to fail.
Assuming all banks accept the same identification documents. Requirements vary, so confirming in advance saves a wasted trip.

Opening a bank account for the first time

Opening a bank account usually requires a form of identification, such as a passport or a driver’s license, and proof of address. Federal rules require banks to collect certain identifying information⁠(opens in new window) before opening any account, including a name, date of birth, address, and an identification number, a taxpayer identification number for a U.S. person, or a passport number or similar government-issued document for others. Some banks accept an ITIN⁠(opens in new window) in place of a Social Security number for people who don’t yet have one, so it’s worth asking directly what a particular bank will accept.

If helping a family member open their first account, whether in the U.S. or abroad, it’s worth checking what identification the local bank requires, since rules differ significantly by country⁠(opens in new window) and by institution, sometimes considerably from what’s required elsewhere⁠(opens in new window).

Types of bank accounts you’re likely to encounter

Most banks offer at least a checking account for everyday spending and a savings account for setting money aside, though many also offer specialized options like a money market account or a certificate of deposit for different savings goals. Understanding the basic distinction between these types helps in choosing the right combination for a specific situation rather than defaulting to whatever a bank representative first suggests.

Common questions about bank accounts

What documents do I need to open a bank account?

Most banks ask for a government-issued photo ID, such as a passport or driver’s license, along with proof of address, like a utility bill or lease agreement. Some banks also accept an ITIN in place of a Social Security number. Because requirements vary by bank, it’s worth calling ahead or checking the bank’s website before visiting a branch.
What’s the difference between a checking account and a savings account?

A checking account is designed for everyday transactions, like paying bills or making purchases, and typically comes with a debit card. A savings account is meant for money not needed right away, and it usually earns a small amount of interest but may limit how often withdrawals can be made.
Can I receive an international money transfer without a bank account?

Yes. Without a bank account, money sent internationally can still be received through alternative delivery methods such as cash pickup, a mobile wallet, or home delivery, depending on what’s available in a specific country. Bank deposit is simply one of several ways money can arrive.

In Summary

A bank account is one of the first practical steps toward financial stability in a new country, providing a secure place to receive income, pay bills, and send or receive money across borders. Whether opening a first account or helping a family member choose a delivery method for money being sent to them, understanding how bank accounts work removes some of the guesswork.

This publication is provided for general information purposes only and is not intended to cover all aspects of the topics discussed herein. This publication is not a substitute for seeking advice from an applicable specialist or professional. The content in this publication does not constitute legal, tax, or other professional advice from Remitly or any of its affiliates and should not be relied upon as such. While we strive to keep our posts up to date and accurate, we cannot represent, warrant, or otherwise guarantee that the content is accurate, complete, or up to date.