GuideOct 27

Money in the United States: Opening a Bank Account, Taxes and Sending Money Safely

Managing money is part of settling in. This article covers opening an account, the tax number some newcomers use, sending money abroad, and the scams that target people who wire money, using official U.S. government pages with direct links.

1. Opening a bank or credit union account

The Consumer Financial Protection Bureau (CFPB) says opening an account at a bank or credit union is quite simple. It says you provide information so the institution can verify your name, date of birth, address and identification number, and that the number can be a Social Security number, an Individual Taxpayer Identification Number (ITIN), a passport number and country of issuance, an alien identification card number or another government-issued ID number. Its checklist lists a photo ID issued by a U.S. or foreign government and a second ID such as a Social Security card, a bill with your name and address, or a birth certificate. The CFPB says each bank has its own policy on which foreign IDs it accepts, and that without a Social Security number or ITIN you may only be able to open a no-interest account. https://files.consumerfinance.gov/f/documents/cfpb_checklist_opening_bank_account_web.pdf

The CFPB suggests asking about the minimum balance needed to avoid monthly fees, monthly service fees, whether direct deposit removes the fee, ATM and transaction fees, online and mobile banking costs, and how to avoid overdraft fees. https://files.consumerfinance.gov/f/documents/cfpb_checklist_opening_bank_account_web.pdf

2. Check that deposits are insured

The Federal Deposit Insurance Corporation (FDIC) says its insurance is available only for money on deposit at an FDIC-insured bank, and that the standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category. It says stocks, bonds, mutual funds and crypto assets are not insured. https://www.fdic.gov/resources/deposit-insurance/brochures/deposits-at-a-glance

3. What an ITIN is

The Internal Revenue Service (IRS) says an ITIN is issued for federal tax purposes only. It says an ITIN does not qualify you for Social Security benefits or the Earned Income Tax Credit, does not provide or change immigration status, does not authorize you to work legally in the United States, and does not serve as identification outside the federal tax system. https://www.irs.gov/tin/itin/individual-taxpayer-identification-number-itin

According to the IRS, you need an ITIN if you have a federal tax purpose and are not eligible for a Social Security number. It says a resident or nonresident alien, or their spouse or dependent, can apply regardless of immigration status, and that U.S. citizens, green card holders and anyone eligible for a Social Security number do not need one. It says to apply on or before your tax return due date and generally include the tax return in the application package, except for applicants who meet an exception to the filing requirement (the IRS page lists them), and to allow 7 weeks for a status notice (9 to 11 weeks during tax season or when applying from overseas). The IRS also offers an online interview to check eligibility. https://www.irs.gov/tin/itin/individual-taxpayer-identification-number-itin https://www.irs.gov/help/ita/am-i-eligible-to-apply-for-an-individual-taxpayer-identification-number

4. Sending money to another country

The CFPB says federal rules protect people in the United States who use a remittance transfer provider to send more than $15 electronically to a person or company in another country. Providers must tell you before and after you pay about the fees and taxes they collect, the exchange rate, the amount expected to be delivered and when the money will be available, and must explain your right to cancel, what to do about an error and how to complain. It says providers generally must give receipts and disclosures in your language if they use that language in advertising or sales where you made the transfer. https://www.consumerfinance.gov/ask-cfpb/what-is-a-remittance-transfer-and-what-are-my-rights-en-1161/

The CFPB says that after you pay you generally have up to 30 minutes to cancel at no charge, unless the money has already been picked up or deposited, and that a transfer scheduled in advance can be canceled up to three business days before it is made. You have 180 days to notify the provider of a mistake, counted from the date the provider disclosed as the date the money would be available. https://www.consumerfinance.gov/ask-cfpb/can-i-cancel-an-international-money-transfer-en-1737/ https://www.consumerfinance.gov/ask-cfpb/what-is-a-remittance-transfer-and-what-are-my-rights-en-1161/

5. Wire-transfer scams

The Federal Trade Commission (FTC) says wiring money with services like MoneyGram, Ria and Western Union is like sending cash: once you send it, you usually cannot get it back. The FTC says never to wire money to anyone you have not met in person, or to anyone who says they work for a government agency, who pressures you to pay immediately, or who says a wire transfer is the only way to pay. It describes common versions, including fake rental listings, fake check scams, family emergency scams and utility scams. If you wired money to a scammer, the FTC says to contact the transfer company right away and ask it to reverse the transfer, and to report it at ReportFraud.ftc.gov. https://consumer.ftc.gov/articles/what-know-you-wire-money

Official sources

Published on Mahjar Post on October 27, 2026. Sources: official U.S. government pages linked above.

Reports summarised from the sources linked on each story page. Corrections welcome.