An Introduction To The US Banking System For USRN Immigrants
As a new USRN, a Medliant team member will assist you in opening up your first bank account once you arrive in the USA. This bank account (a checking account) will be needed to receive direct deposit payments, and can also be used to withdraw cash from a bank or ATM, transfer or wire money to other accounts or individuals, make online or scheduled payments (e.g. phone bill, car payment, or rent), or to make purchases in person or online.
Documents/Items Often Required to Open a Bank Account:
A Social Security Number (SSN Card)
Employment Letter
Government Issued ID (e.g. Green Card)
Utility Statement (to prove your address/residence)
Initial Cash Deposit (typically a minimum of $25-50 USD)
Note: Required documents or items will vary depending on the institution. A Medliant team member will assist you in bringing the required documents/items needed to open up your first bank account.
Basic Types of Bank Accounts
1. Checking Account: A checking account is a basic banking account that is used to receive direct payments from your employer (Medliant), to withdraw cash at a banking institution branch or ATM, transfer or wire money to other accounts or individuals, or to set up automatic withdrawals for scheduled payments (e.g. phone bill, car payment, or rent). Each account will have a routing number and an account number, which will be needed to set up direct deposit payments. This information may also be needed to set up scheduled payments as well. You can also make bill payments using this type of bank account online (desktop or app) by adding the company or organization as a “bill payee” and entering the amount that you would like to pay if you do not choose to make scheduled automatic payments.
2. Savings Account: A savings account is often linked to your checking account, and allows you to transfer money back and forth. If you are anticipating setting money aside for a rainy day fund, to save up for a future purchase, or to grow your bank account balance with interest that some savings accounts may offer, this may be a bank account that you consider opening.
3. Investment/Retirement Account: In the USA, there are many types of investment accounts such as an IRA or Roth IRA, for example. These accounts are often used to gain tax advantages that are offered when you set money aside for a later date or for retirement. To learn more about these accounts, you may want to consider speaking to a financial advisor at a banking institution in the USA.
4. Credit/Visa Account: Credit or visa accounts are banking accounts that allow you to spend up to a set limit at any given time (e.g. $5000 USD). To pay off the amount owing in this account, you would transfer funds directly or via the payee option from your checking account. Many credit or visa accounts offer incentives for using their cards (e.g. money or cash back, travel credits or points, rewards, etc.). Using credit or visa accounts responsibly can help you establish a strong credit score in the USA when you pay off the amount owing each month on time and always make the minimum monthly payment required. With higher credit scores, you may receive offers for lower interest rates on a loan (e.g. for a car purchase) or a mortgage with a home purchase. It is important to be financially responsible and to pay off the amount owing each month to avoid paying interest or risk negatively affecting your credit score. As with opening any account, always speak to a financial export or advisor to ensure you understand the details of the account and if one is recommended for you.
Note: Medliant does not offer any financial advice. For financial advice, including what bank accounts you may consider opening or investment/retirement accounts, speak to a financial advisor or expert. You can reach out to your local bank branch in the USA to set up an appointment with an advisor to discuss your personal and/or family financial goals both in the short- and long-term.
