A bank account is a safe place to store your money. In the unlikely event the bank is robbed, your money is insured and will be replaced—at least up to $250,000. If you store your money at your house or place of business, for example, it is much more likely to be stolen by known or unknown persons. Opening a bank account will also help you gain access to credit—with a credit card, personal loan, home mortgage loan, or small business loan—and will help you develop a savings plan for the future.
Similarly, credit cards are a safe and convenient way to pay for many monthly expenses—including groceries, gas for your vehicle, utilities (electricity, water), and your phone bill. Credit cards also help consumers pay for larger, more unexpected expenses such as car repairs and medical bills.
Some banks require a Social Security number to open a bank account or credit card account, but other banks do not—so it is possible for an undocumented immigrant, for example, to open a bank account or credit card account.
Banks are required by law to obtain some basic personal information from you when opening a new bank account or credit card account. This information—and the documentation required to provide it—includes:
• Name and date of birth—as shown on (1) an unexpired passport; (2) a government-issued driver’s license—including a foreign license; (3) a Consular Identification or Consular ID card; or (4) a birth certificate. And in some cities that issue municipal IDs—such as New York City and San Francisco—those IDs may be sufficient proof of identity.
• Proof of address. Banks and credit unions generally require proof of a street address to open a bank account—which may be shown by presenting (1) a current driver’s license or municipal ID; (2) a utility bill; or (3) a lease agreement.
• Identification number. The requirement of an identification number may be met through (1) a Social Security number (SSN); (2) an Individual Taxpayer Identification Number (ITIN); (3) an alien identification card number; or (4) another government-issued document that proves your nationality or residence—such as a passport or foreign driver’s license. ITINs are used by the Internal Revenue Service (IRS) to process income taxes and are only available to noncitizens in the U.S. who are not eligible for a Social Security number.
To get an ITIN a person must (1) complete the required W-7 form available at https://www.irs.gov/pub/irs-pdf/fw7.pdf; (2) submit proof of identity (passport or driver’s license) along with a completed federal tax return; (3) mail in the application, or take it to an IRS walk-in office, or deliver it to an approved Acceptance Agent (generally colleges, accounting firms, tax preparers, banks, credit unions).
In Texas, as in other states, bank accounts offer a secure way to store money, with the added benefit of federal insurance through the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per depositor, per insured bank, for each account ownership category, in the event of a bank failure. Credit cards provide a convenient payment method and can help with building credit history. To open a bank or credit card account, banks are required to collect personal information for identity verification under the Customer Identification Program (CIP), which is part of the USA PATRIOT Act. This information typically includes name, date of birth, address, and an identification number, which can be a Social Security number (SSN), Individual Taxpayer Identification Number (ITIN), or other government-issued identifiers. While an SSN is commonly used, banks may accept an ITIN or other forms of identification, making it possible for individuals without a Social Security number, such as undocumented immigrants, to open an account. To obtain an ITIN, individuals must complete a W-7 form, provide proof of identity, and submit a federal tax return. Acceptable forms of identification for opening an account can include a passport, driver's license, Consular ID, or municipal ID, among others. Proof of address is also required and can be demonstrated with a driver's license, utility bill, or lease agreement.
