Many foreigners wonder if they can open a bank account in the United States, and the answer is YES! Opening a bank account in the US can help you reap a wide range of benefits and advantages when compared to your home country. We’ll go ahead and discuss these later in this article.

Although imperfect, the United States’ Financial System offers three distinctive strengths that allow for an unparalleled avenue for the accumulation and preservation of wealth:

1. Liquidity: The United States is the world's largest economy, and as such, the USD has been the most dominant currency in the world for the last 75 years and is the de facto world reserve currency. All central banks and international corporations hold dollars to manage their financial stability, pay for imports, and service their debt. This means that the USD is a very liquid currency and is therefore easy to use around the globe.
2. Robust Financial Markets: The US markets for bonds (corporate & government) and stocks are the largest in the world. The US government bond market is over $22 trillion dollars, the corporate bond market is over $10 trillion dollars, and the stock market is over $36 trillion dollars.
3. Low-Cost Financial Products and Services: The size of these markets creates highly competitive dynamics that translate to innovation and that are beneficial to consumers. As a result, there is significant pressure on accessibility, fees and low-cost alternatives.

While everyone's reasons are different, foreigners can benefit from opening bank accounts in multiple ways, including:

‍

Send and receive payments from US customers and vendors.‍

Becoming part of the world’s strongest currency will allow you to attain more and better business opportunities. Additionally, you’ll be able to avoid unfavorable exchange rates and fees and gain access to a stronger market. Furthermore, having USD gives you liquidity around the globe.

Bank in a country that is financially safer and more stable than their home country.

‍Your transactions are more likely to be cleared with ease thanks to the high reputation and reliability of US banking platforms compared to the rest of the world. Additionally, the Federal Deposit Insurance Corporation (FDIC) offers deposit security for up to $250,000 USD, making it the highest protected amount for any insurance agency in the world.

Holding USD instead of more volatile currencies. ‍

The stability of the US Financial System allows for more certainty against global economic shocks compared to other jurisdictions. In fact, many countries match their currency volatility against the US dollar.‍

Online banking resources and low-cost transactional banking in US dollars.

The competitiveness of the US financial system allows for better and more accessible products and services for consumers. This results in lower fees and better customer experiences, including access to low-cost payment processing (e.g., Stripe or PayPal.)

Increase banking privacy since the US is a non-CRS country.

The US is the world’s largest tax haven for foreign nationals. The US is under no obligation to share your financial data with the rest of the world. Check with your tax advisor whether your fiscal strategy could benefit from having a US bank account.

In addition to the benefits already mentioned, having access to a US bank account can give you access to building a credit history that paves the way for accessing lower interest-rate loans and mortgages, and even taking advantage of US credit cards and their travel rewards programs.

If you want to learn more about how to get a US bank account with Sammy, visit us at usesammy.com