What Is the Average Stock Market Return?
Wondering how much you’ll gain by investing in stocks? It helps to look at the average stock market return for the last 10, 20, and 30 years.
Read moreWondering how much you’ll gain by investing in stocks? It helps to look at the average stock market return for the last 10, 20, and 30 years.
Read moreStudent loans don’t just help you pay for your college education. They also allow you to build a credit history, which can be useful when it comes time to get a mortgage or take out a car loan. The key is to make regular on-time payments.
Here’s a look at how student loans can affect your credit score.
Your credit score may be a factor when you’re applying for a student loan. It all depends on the type of loan you’re planning to take out. Most federal loans don’t have a minimum credit requirement, which is why nearly every borrower gets the same interest rate regardless of their financial profile. However, federal PLUS loans for parents require that borrowers do not have an adverse credit history.
Credit scores are typically more of a factor with private student loans. Lenders often consider your score when determining student loan approval and interest rate. In general, the better your score, the better your rate will be.
When considering your student loan application, most private lenders look at your FICO® score. This score, which ranges from 300 to 850, helps lenders determine whether to extend credit and at what interest rate.
Because FICO is used widely throughout the lending industry, including by mortgage lenders and credit card providers, it gives lenders an apples-to-apples comparison of potential borrowers.
FICO scores are calculated using five categories of data found in your credit reports: payment history, amounts owed, length of credit history, new credit, and credit mix. As the chart below shows, each category is weighted differently.
Category | Weight in Scoring |
---|---|
Payment History | 35% |
Amounts Owed | 30% |
Length of Credit History | 15% |
New Credit | 10% |
Credit Mix | 10% |
There are three key ways you can help maintain a good credit score: Pay bills on time, keep credit card balances low, and reduce the amount of debt you owe.
To determine your credit score, FICO considers your loans and payment patterns on those loans. A responsible debt owner who continually makes on-time payments may experience no credit changes or even see positive shifts.
But if you fail to repay a loan or continually make late payments, your credit score will likely see a dip. If you default on your student loan, your credit score could drop, the lender may send your account to a collections agency, and you may have a more difficult time securing credit in the future.
Making payments on time is important, but what you might not realize is exactly how damaging late payments can be. Even if your credit history is pristine, it only takes one report of 30 days past due to change your score. Once a late payment is reported to the credit bureaus, it could remain on your credit report for up to seven years.
To help ensure your payments are on time, you might want to set up an automatic payment plan. Most lenders will even give you a small discount on your interest rate for doing so. If you know you can’t make a payment on time, talk to your lender or loan servicer right away. The U.S. Department of Education, which is the lender for four types of Direct Loans, and some private lenders offer loan deferment or forbearance. These options allow a borrower to temporarily suspend payments, which will minimize the impact on their credit score.
When you’re shopping around for the best interest rate possible on a private student loan, lenders may pull your credit file. This is called a hard inquiry, and each one could temporarily knock a few points off your credit score.
To help protect your FICO score, try to finish shopping for rates and finalizing your loan within 30 days. Researching lenders’ rate ranges and general eligibility criteria ahead of time can give you a good idea of whether you’ll qualify for a loan before you formally apply.
You may also want to ask lenders if they can tell you the interest rate you would receive without doing a “hard” credit pull, which might affect your score. You can’t get a loan without an eventual hard inquiry, but getting prequalified allows you to compare interest rates without impacting your credit score.
Refinancing student loans at a lower interest rate can have an indirect positive effect on your credit. For example, if refinancing lowers the amount you pay each month, you may be more likely to make payments on time.
If you refinance federal loans with a private lender — in effect, turning your federal loans into a private loan — rest assured that credit bureaus don’t view these two types of loans any differently. However, when you refinance your federal loans, you will lose certain federal protections, such as income-driven repayment plans, deferment or forbearance, and loan forgiveness programs.
Repaying student loans quickly will always improve your credit score, right? Not necessarily. In fact, you could even see a small, temporary dip in your credit score right after paying off a loan. There are several reasons for this. If student loans are your primary source of open credit, closing those accounts means you’re no longer building payment history. Prematurely paying off a loan can also change your credit mix or credit utilization.
But credit score is just one factor to consider when deciding how quickly to pay off a student loan. You may want to think about how much extra interest you’d pay by leaving the account open. Carrying a high loan balance could also make it harder to qualify for new loans, which is something to keep in mind when it comes time to buy a home or car.
Student loans affect credit scores in a variety of ways, but the worst thing you can do is ignore your monthly loan payment. If you’re even one day late with a payment, you’ll be considered delinquent and may be charged a penalty.
Once a missed payment is more than 90 days delinquent, your loan servicer will report it to the three major national credit bureaus. This could lower your credit score and hurt your ability to get a new credit card or qualify for a car loan or mortgage.
After 270 days of a missed student loan payment, your status changes to default and your student loans are due in full along with any accrued interest, fines, and penalties.
Student loans can help borrowers establish a solid credit history, which can ease the way for future borrowing opportunities and attractive interest rates. The key is to pay what you owe on time, every time.
Paying a loan off early or shopping around for rates could cause a small, temporary dip in credit scores. Being late with a payment — or stopping payment altogether — may lower your credit score and hurt your ability to qualify for another loan. Setting up automatic payments can help ensure you don’t miss a loan bill. Refinancing your student loans could reduce monthly payments and help you manage your loans more easily.
SoFi, for example, offers competitive rates to refinance student loans. If you now have a better financial profile than when you took out your loans, you may be able to save money over the life of the loan if you qualify for a lower interest rate.
Student loans are an opportunity for borrowers to build credit and establish a solid credit history, which can help when it’s time to get a mortgage or take out a car loan. The key is to make regular, on-time payments.
Payment history is one factor of your overall credit score, so making regular, on-time payments on your student loans can help you build credit.
Your credit score is calculated using five different categories of data. These include payment history, amounts owed, length of credit history, new credit, and credit mix.
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SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs.
SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s
website .
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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If you’re due a tax refund this year, you’re likely to be impatient to get your hands on the money. Perhaps you are planning on using it for a special purchase or a vacation. Or maybe you are eager to use it to pad out your emergency fund or pay down some debt.
Fortunately, the IRS says that if you file an electronic return and sign up for direct deposit, your funds can likely be with you in just one to three weeks. You should receive a check within about one month if you didn’t sign up for direct deposit. While refunds on paper returns usually take six to eight weeks after receipt of the return, there are currently delays reported with paper returns. It may take several months to get your refund.
That said, you may still be wondering where your refund is, whether it’s not quite due yet or whether you feel it should have arrived already.
Read on to learn more and manage your expectations or take steps, including:
• How long does it take to get a federal tax refund?
• When will I get my tax refund?
• What impacts the time it takes to get a tax refund?
• How can I check on where my tax refund is?
For those who are curious about when exactly a refund should arrive, consider this information:
In terms of when you will get your federal tax refund, here is a typical timeline after filing:
• 1 to 3 weeks for e-filing with direct deposit
• 6 months for paper filing with direct deposit
• 1 month for e-filing with the check sent by mail
• 6 months or longer for paper filing with the check sent by mail
The IRS cautions that paper returns are subject to processing delays for tax year 2022.
When it comes to issuing refunds, each state handles things in their own way, on their own timeline, so it can be difficult to generalize.
Typically, a state tax refund will arrive within 30 days if your tax return was filed electronically. If you sent in a paper copy, then it will take up to 12 weeks or possibly longer to get that refund.
Sometimes, a taxpayer will not be able to file their return by the Tax Day deadline. Perhaps they are missing important tax documents, are experiencing a family or personal emergency, or maybe they just procrastinated. Whatever the case, there is a mechanism in place that allows for an extension.
The IRS allows people to file for a six-month tax extension for submitting their return. However, the extension request, plus any taxes owed, are still due on that April deadline (the 15th or slightly later if it falls on a weekend or holiday).
If you are due a refund, it will be delayed if you submit your tax return late. Typically, refunds are issued within 90 days of filing a tax return after the deadline.
To request an extension, an individual should file IRS Form 4868 . The form captures basic information about the taxpayer, such as name, address, Social Security number (SSN), and how much you believe you owe.
Anyone, regardless of income, can submit this form electronically as part of the IRS’ Free File program.
The IRS says that it issues more than nine out of 10 refunds in less than 21 days. That said, sometimes the processing of a return can take longer, even if a return was filed electronically. This year, there are delays being reported on processing paper returns.
If a return needs to be reviewed manually, it will likely take longer as well. Factors that can lead to a manual review include incorrect or missing information or identity theft situations. More detail is provided below.
Recommended: Steps to Prepare for Tax Season
If you’re wondering how long does it take to get a tax refund, know that there is not a single, specific timeframe for all taxpayers, and that delays can and do happen.
The IRS cautions visitors to its website not to expect their refund by a certain date. Though most taxpayers typically receive their refund within three weeks, and in even less time if they e-file and choose direct deposit, there are several reasons why a payment might be delayed. Some snags are inevitable, even when there isn’t a pandemic-related backlog of paper returns for IRS staffers to wade through, as there was in 2020.
Here are some issues that could cause a holdup:
Under normal circumstances, the IRS says, it can take six to eight weeks to process a paper Form 1040. Unlike returns that are filed electronically, paper returns must be manually entered into the IRS system. However, this year, the IRS is cautioning that there can be considerable delays of even six months for paper returns.
Tax returns are opened in the order they’re received, so if your refund is taking longer than expected, the date you sent your return could be a factor as well. The delivery option you choose for your refund also can affect how quickly you receive your funds.
According to the IRS, the fastest way to receive your refund is to combine the direct deposit method with an electronically filed tax return. But taxpayers who prefer a paper return also may be able to speed things up a bit by choosing direct deposit for their refund instead of a paper check.
Note: If you e-file, direct deposit is again your fastest path to any refund that’s due (typically one to three weeks), as noted above. If you e-file but request a paper check, that will take a bit longer, often closer to one month.
Did you or your spouse forget to sign your return, or did you type in the wrong Social Security number? Returns with missing information or errors can cause extra work for the IRS, which could hold up a refund.
What’s more, the IRS is strengthening its screening process to help fight identity theft, so even the smallest mistake — such as using a different name than what’s on your Social Security card or misreporting what is W-2 income — could slow things down. If the information you provide is wrong or something is missing, you can expect the IRS to contact you for additional documentation or to correct the error.
If you’re claiming the additional child tax credit or the earned income tax credit, the IRS won’t issue your refund before mid-February. A federal law that took effect in 2017 gives the IRS extra time to review those returns, check employers and other information, and detect any possible fraud.
You may have to amend your return if you find you made an error or there’s a change that affects your income, your income tax bracket, and/or your deductions — and that could delay your refund by several weeks. According to the IRS, it can take up to 20 weeks to process an amended return — even if it was filed electronically.
You can check your return and refund status daily with the IRS’s Where’s My Amended Return tracking tool .
A missing refund could be a sign that someone used your personal information to file a fraudulent tax return in your name. If you suspect you may be the victim of tax fraud, the IRS lists several recommendations for what to do next on its Taxpayer Guide to Identity Theft web page, and the agency advises potential victims to report their concerns to the Federal Trade Commission.
If you have certain kinds of delinquent debt owed to the federal government, what is known as tax refund offset may occur. This means that an individual’s refund may be partially or completely withheld to satisfy the debt.
You will generally be notified if your refund is being reduced or withheld in this way, and you can dispute the payment with the agency that received it. And if there’s any money left after the offset, you’ll receive it by direct deposit or in a check, depending on what you requested on your tax return.
To ask questions about delinquent debt, you can contact the Treasury Department at 800-304-3107.
If you e-filed with third-party tax software or the IRS’s Free File system, you likely received confirmation that your return was received and accepted. If you don’t remember getting a confirmation notice, or if you’re concerned because you haven’t heard anything since then, you can check your status with the agency’s Where’s My Refund tool mentioned above.
If the IRS’s Where’s My Refund tool says your refund check was mailed, but 28 days or more have passed and you haven’t seen it, you can file a claim online to receive a replacement. (The Where’s My Refund site will show you how.)
Even if you opted for direct deposit, it still could take a few days for the money to show up in your account. But if you think your refund has gone missing, you may want to call your bank about tracking the deposit, then move on to contacting your tax preparer or the IRS for help.
The IRS won’t accept responsibility if it sent a refund but you or your tax preparer wrote the wrong account number on your return. If the IRS notices an error or if your bank rejects the deposit and returns the money to the IRS, the IRS still may end up sending you a check (instead of using a direct deposit).
But if you entered an account or routing number that belongs to someone else and the financial institution accepted the deposit, you’ll probably have to work with a bank representative to recover the money. The IRS cannot compel the bank to return the refund.
If you are eagerly awaiting your income tax refund, a wise move can be to track its status on the IRS website or through the IRS2GO app.
You can begin checking your refund’s progress within 24 hours after the IRS receives your e-filed return or four weeks after mailing a paper return. And, if everything goes smoothly, you can use the “Where’s My Refund” tracking tool daily to watch your tax return make progress.
To use the Where’s My Refund tracking tool, all you need is your Social Security number or Individual Taxpayer Identification Number (ITIN), your filing status (single, married filing jointly, etc.), and the exact dollar amount of your expected refund.
You may not get all the information you wanted about your refund, but it’s a start. If you can’t get enough intel there, your local IRS office may be able to help.
What about the scenario in which a tax refund arrives but it’s for less than you expected? Consider a couple of possibilities:
• Your tax return could have contained an error, leading you to think you were due more money than you actually are.
• A key example of this is that the American Rescue Plan tax benefits have either reverted or gone away for the 2022 tax year. This could mean your refund is lower than last year.
• You might have had your refund lowered by the Treasury’s Offset Program mentioned above.
In the situation of your refund being less than anticipated, there is likely an explanation provided from the IRS as to why. If you are not satisfied, you can use the methods outlined above to contact the IRS and gain more insight.
If you’re hoping to get your next refund faster, here are a few steps that might help:
As mentioned above, filing electronically vs. filing a paper return can speed up your refund. It can typically shave a week or two off of getting your money back via direct deposit and a month off the time for a refund check to be issued.
The IRS says refunds will generally be received by taxpayers sooner if they have e-filed and selected direct deposit. Even if you prefer mailing in a paper return, you can choose to have your refund deposited into your account.
Pay attention to every detail as you prepare your taxes. Don’t let a little mistake or an omission of data cause a long delay.
By filing as soon as possible during tax season, you’ll be able to position your return at the front of the line for processing. And by starting early, you’ll give yourself plenty of time to research any tax help you may need along with tips that might apply to you, your business, and your family.
Most tax refunds are issued within one to three weeks if you file electronically and opt for direct deposit of your refund. If you file a paper return or opt for a refund check to be mailed to you, it can lengthen the timeline. In any scenario, the IRS provides tools that can help you track your refund and know where your return is in terms of processing.
If you are due a refund and need a great place to deposit it, you may consider opening a bank account online, like SoFi Checking and Savings. With SoFi Checking and Savings, you’ll have easy access to your money with a large ATM network and your refund won’t be eaten up by fees while you decide how best to use it. That’s because we charge no account fees! Your money will also earn a competitive annual percentage yield (APY), which also can help it grow.
Your tax refund arrival will depend on when you filed your return, how you filed it, and how you indicated you’d receive your tax refund. Typically, filing electronically with direct deposit is quickest, with the refund arriving in one to three weeks. If you file electronically with a paper check as the refund, that could take closer to three weeks or so. Paper returns are experiencing processing delays, according to the IRS, and refunds may take six months or longer.
The 2022 tax year season began on January 23, 2023, and the deadline is April 18, 2023. Tax refunds are issued at varying speeds, depending on whether you file electronically or with a paper return, and whether you request your refund be direct-deposited or sent as a check. The fastest option is to file electronically and have the refund direct-deposited. This typically takes less than three weeks.
How long it takes to get your refund through direct deposit will vary depending on whether you filed an electronic or paper return. The majority of electronic returns are processed in three weeks or less, with direct deposit happening very soon thereafter. Paper returns, however, are experiencing processing delays and can take several months or longer, with refunds consequently taking at least that long to hit a taxpayer’s bank account.
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SoFi members with direct deposit can earn up to 4.00% annual percentage yield (APY) interest on Savings account balances (including Vaults) and up to 1.20% APY on Checking account balances. There is no minimum direct deposit amount required to qualify for these rates. Members without direct deposit will earn 1.20% APY on all account balances in Checking and Savings (including Vaults). Interest rates are variable and subject to change at any time. These rates are current as of 3/17/2023. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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Growth is generally slower with CDs and bonds, but investors still may find there’s a place for these tools in their portfolio.
Read moreNon-U.S. citizens spending time in America likely want a safe place to stash their cash and a hub for establishing their financial life in this country. One of the best ways to accomplish this can be opening a bank account. However, there can be some hurdles when a person is not a citizen. Fortunately, with a little research and legwork, it’s often possible to establish a relationship with one of many banks when arriving on U.S. soil.
This guide explores how non-U.S. citizens may open a bank account in the 50 states, including the answers to:
• Can a foreigner open a bank account in the U.S.?
• What kind of identification is needed to open a bank account?
• How can a person get an ITIN for identification purposes?
• What are alternatives to a U.S.-based bank account?
It may be possible to open a U.S. bank account as a non-resident, though not all banks allow this. It’s wise to check with a specific financial institution to learn their policies, including what forms of identification will be required.
For example, a non-U.S. citizen might ask about the process of opening a checking account or what is needed to start a savings account. This can reveal what types of ID and other credentials are going to be necessary so either a complete application can be prepared or one can look elsewhere.
Recommended: What is a Savings Account and How Does it Work?
When a person is ready to open a bank account, even if they are a U.S. citizen, they will have a number of documentation requirements to open a bank account. According to the USA PATRIOT Act of 2001, financial institutions must verify the identity of someone who wants to open a bank account to the “extent reasonable and practical.”
How financial institutions choose to manage this process can vary, but here are typical requirements whether opening a bank account online or in person:
• Contact information (name, address, phone number, email address).
• Two forms of current government ID, such as a driver’s license and Social Security card.
• If a person hasn’t used a Social Security card as a form of ID, the financial institution will likely still ask for a Social Security number (SSN).
• A current bill (such as a water, electric, or other utility bill) to confirm one’s current address.
• Minimum opening deposit (this is often $25, but may be as little as $1 or even zero).
It’s wise to check with the bank of choice (or a couple of financial institutions being considered) for more details.
If a person is new to America, they may not have all of the documents mentioned above. Opening a bank account in a foreign country can therefore seem problematic. When applying for an account, however, it may be possible to submit alternative paperwork. Other options can include the following:
• Instead of a driver’s license, a government-issued state ID or a U.S. military ID may be acceptable. All must be current/unexpired.
• Other forms of secondary governmental IDs (besides a Social Security card) can include an original or certified birth certificate or a passport; a passport can also serve as a primary form of ID.
• An ITIN, or Individual Taxpayer Identification Number, if the applicant is not eligible for a Social Security number.
Next up: More about an ITIN, which can be a vital piece of identification for non-U.S. citizens, allowing them to bank in America.
If a person pursues a bank account as an immigrant, they may wonder, “What is an ITIN?” It’s an important point to learn more about and can unlock financial services. ITIN stands for an “Individual Taxpayer Identification Number,” as noted above, and, according to the IRS, this serves as a tax processing identification number.
The IRS issues this nine-digit number to people who need to have an identification number in the United States but are not eligible to get a Social Security number. A person’s immigration status is not relevant when applying for an ITIN because resident and non-resident aliens may each need to have this number.
Worth noting: Getting an ITIN does not authorize a person to work in America. It is simply a number that is used for tax-reporting purposes.
If a person is not a U.S. citizen and wants to apply for an ITIN, they will have a few options. The IRS lists the steps for a couple of alternatives:
• To apply by mail, provide IRS Form W-7 PDF File , proof of identity, tax return, and foreign status documents to the following address:
◦ IRS Austin Service Center, ITIN Operation, PO Box 149342, Austin, TX 78714-9342
◦ No return envelope is required for the documents to be returned. However, if a person wants their documents returned more quickly, they can include a prepaid express mail envelope or courier envelope.
• If these original documents are needed within the next 14 weeks (which can be how long processing takes), a person may decide to apply in person at a Certifying Acceptance Agent (CAA). Certified copies rather than the originals can be submitted.
◦ If the original documents haven’t been returned and 14 weeks have passed, an individual can call 800-908-9982 in the United States or 267-941-1000 outside the country for an update on their return.
• Make an appointment at an official IRS Taxpayer Assistance Center . Multilingual operators are available.
Once an individual receives their ITIN, they can move ahead with opening a bank account.
Some banks and credit unions are willing to accept other forms of identification rather than an SSN or ITIN. For example, they might use:
• A passport number and documentation of the country that issued it.
• An alien identification card number.
• Another ID number issued by the government.
It can be a wise move to check in with a financial institution and see what their requirements are. By doing this, a person can likely identify the right spot to open a bank account as a foreigner, using the forms of identification that are accessible.
What if an individual is an undocumented immigrant who wants to open a bank account? There are financial institutions which will accept a person as a client without a Social Security number or ITIN.
Here is the documentation that will likely be needed:
• Proof of name and date of birth. Acceptable documentation might be an unexpired passport, a domestic or foreign government-issued driver’s license, a birth certificate, or consular ID.
• Proof of address. This might mean showing a driver’s license, a lease, or utility bill.
• An identification number. Assuming a person doesn’t have an SSN or ITIN, an alien identification card number could be sufficient, or else a government-issued document (like a passport or foreign driver’s license) that proves one’s nationality or residence.
There could be other requirements, depending on the financial institution where an account is sought. However, the answer to “Can a non-U.S. citizen open a bank account?” (including those who are undocumented) is likely to be yes.
Opening a bank account can be a vital step in establishing and maintaining one’s day-to-day financial life in the U.S. Here are some of the benefits. The Federal Deposit Insurance Corporation, or FDIC, lists numerous reasons why opening a bank account PDF File can be beneficial:
• Safety: A bank account can keep money safe, and not only from theft. FDIC insurance keeps money secure even if a bank fails, though that is a very rare occurrence.
• Convenience: A paycheck can be seamlessly direct-deposited into an account, eliminating the possibility of a lost or stolen paper check. Bills can easily be paid from a bank account, and, with a debit card (provided by many accounts), a person can easily swipe to pay for goods and services. With a bank account, it’s also possible to transfer money via P2P apps (or peer-to-peer apps), like Venmo and PayPal.
• Accountability: With a bank account, an individual can track balances and transactions made and have a record of everything. They can set up alerts to stay informed about funds coming in and flowing out, as well as low balances. In addition, they can benefit from other services that the financial institution offers.
Depending on a person’s situation, they may want to open an individual account solo or bank with another person, which will provide some joint bank account benefits. In either case, if an individual is a new owner of a checking account, it’s important to learn how to balance bank accounts and keep on top of cash flow to avoid overdraft fees and the like.
What if a person is not a citizen and wants to open a bank account, but doesn’t have or can’t get one of the standard accounts? Here are some options:
• They can see if a bank in their home country has a relationship with a bank in America. If a financial institution does have this kind of connection, it might pave the way to open an account at a U.S. bank.
• A person might investigate an offshore account, which would be neither in their home country nor in the U.S. These accounts can have high minimum deposit and other requirements, but may suit some individuals.
• Another route may be to open an account with a financial services company which will allow wages to be received and funds to be moved. Services such as Majority and Wise may provide options, though this may not deliver all the benefits sought from an online or traditional bank.
Many banks allow non-U.S. citizens to enjoy the convenience and security of a checking or savings account. However, extra steps are likely involved when it comes to providing forms of ID. An ITIN can be helpful when opening a bank account as a non-U.S. citizen. This form of identification can be worthwhile in getting one’s financial life up and running in America.
SoFi online banking does not accept ITINs at this time, but for those with other required forms of ID, it can offer the right combination of a competitive annual percentage yield (APY) and no account fees. Together, these can help money on deposit grow even faster. And with our Savings and Checking account, spending and saving happen in one convenient place.
The answer to “Can an immigrant open a bank account?” is often yes. Opening a bank account in the U.S. as a foreigner comes with added steps: Those who don’t qualify for an SSN, or Social Security number, must identify themselves in another way, such as with an Individual Taxpayer Identification Number, or ITIN, that is acceptable to the financial institution.
It’s wise to check with a financial institution of choice to see whether they offer accounts to non-citizens and their specific policies on how a non-resident can open a bank account in the U.S. Ask what forms of ID are needed; many banks will likely require an ITIN or an alternative document.
Although specifics may vary by financial institution, in general, a bank will ask for contact information along with a document (say, a recent utility bill) that confirms the applicant’s address; two forms of a government-issued ID; Social Security number; and a minimum opening deposit. If someone isn’t eligible for a Social Security number, an ITIN may be an acceptable alternative. It may be possible to open an account with neither an SSN nor an ITIN; check with financial institutions under consideration for details.
Photo credit: iStock/Nuthawut Somsuk
SoFi members with direct deposit can earn up to 4.00% annual percentage yield (APY) interest on Savings account balances (including Vaults) and up to 1.20% APY on Checking account balances. There is no minimum direct deposit amount required to qualify for these rates. Members without direct deposit will earn 1.20% APY on all account balances in Checking and Savings (including Vaults). Interest rates are variable and subject to change at any time. These rates are current as of 3/17/2023. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet
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