Asylum Seeker Bank Accounts: How to Open One
Having a bank account is one of the best financial moves you can make in the US. But can refugees open bank accounts? We'll answer that question, explain why bank accounts are so helpful, what is needed to open a bank account, and where you can learn more about the US financial system.
Why you need a bank account
A bank account is an excellent foundation for building your financial life in the US, whether you're an immigrant, an asylum seeker, or a citizen. A bank account makes your financial life easier and less expensive and provides a secure place to keep your money.
Without a bank account, you'll have to pay for things like cashing checks and money orders which are used to pay bills if you don't have a checking account. And while having a bank account doesn't help you build credit, it does matter when you want to do things like buy a vehicle or a home, as it provides a record of your income and spending to potential lenders.
Many people have two types of bank accounts in the US, a checking account and a savings account. A checking account is the priority as it's your "active" bank account, the account you use to receive and send cash. A savings account isn't strictly necessary, but it is a great place to keep your emergency fund.
Bank accounts for immigrants
Immigrants to the US of any status can open a bank account with an ITIN (Individual Tax Identification Number) instead of a Social Security number. An ITIN is issued by the Internal Revenue Service (IRS) as a way to identify taxpayers who do not have a Social Security number.
Many banks in the US don't require a Social Security number and will accept an ITIN, including Chase, Bank of America, Axos, and Capital One 360.
How asylum seekers can open a bank account
Asylum seekers may not have a Social Security number or ITIN, but they can still open a bank account in the US. What US banks are most concerned with is a potential customer's ability to prove their identity and place of address. To open a bank account, you'll need the following:
Photo identification which can include a Passport, driver's license, military, or student ID
Proof of address which can include a lease agreement or utility (gas, water, electricity) bill in your name
Cash to fund the account; generally, $25 to $100, is sufficient
Some asylum seekers may be eligible for cash assistance in the US.
Qualifying humanitarian immigrants and refugees are given money under the Refugee Cash Assistance (RCA) program for up to eight months from the date of their arrival in the U.S. or the date of their immigration status for asylees or trafficking victims.
To be eligible, you must:
Provide documents issued by the USCIS that verify your immigration status and date of arrival or eligibility
For refugees and Special Immigrant Visa holders, provide the name of the agency that resettled you
Meet immigration status requirements
Be willing and able to participate in the work and training requirements
Meet income and resource requirements
Upwardli can help
Getting a bank account is just the first step in building your new financial life. Upwardli is here to help you with all the steps along the way! Upwardli was created to help those new to the U.S. navigate our financial system.
That includes dozens of resources to help teach you the basics and beyond, matching you with financial service providers who don’t have the typical requirements and a quick path to building your credit.