Banking for Brits in the US

Q. Can I open a US bank account as a British expat?

Yes. There is a widespread myth that you need a Social Security number (SSN) before any US bank will talk to you. That is not true. Major banks such as Bank of America, Chase, Wells Fargo and Citi, along with many local credit unions, will open accounts for newcomers. Credit unions and some banks are often the most flexible with people who have just arrived.

One practical tip: most banks' online sign-up systems assume you have an SSN, so if you do not have one yet, you will usually have the easiest time opening the account in person at a branch.

Q. Can I open a US bank account before I move from the UK?

Sometimes, but many people open one after they arrive. It depends on the bank.

• Through your UK bank: a few international banks with a UK and US presence let existing customers start a US account before moving. For example, HSBC UK says current account holders aged 18 or over, living in and applying from the UK, can apply for an account in the USA. Conditions apply, so check the details with the bank.
• Mainstream US banks: many expect you to open an account in person at a branch once you have a US address, bringing your passport and visa.
• Online and app-based providers: some offer US dollar account details to newcomers. Check whether your money is actually held at an FDIC-insured US bank, as the FDIC only insures deposits held at insured banks.

This is general information, not a recommendation of any provider. Whichever you look at, ask what ID they need, whether they need a US address, and whether a Social Security number is required.

Q. Can I keep my UK bank account if I move to America?

Usually yes, and it is often useful to keep one open for your UK State Pension, any UK income, direct debits, and moving money between the two countries. A few things to keep in mind:

• Tell your UK bank you have moved. Some UK banks restrict or even close accounts for customers who are no longer UK-resident, so check their policy.
• For moving money between pounds and dollars, banks and specialist currency-transfer services can differ a lot on exchange rates and fees, so the all-in cost is the figure to compare.
• Once you are a US tax resident, holding money in UK accounts can bring US reporting duties. If your foreign accounts add up to more than a set threshold at any point in the year, you may need to file an FBAR, and separate FATCA reporting can also apply.

Q. What ID do I need to open a US bank account?

Requirements vary by bank, so it is always worth calling the branch first. As a general rule, expect to be asked for:

• Your passport (usually the main photo ID a newcomer relies on).
• A second form of ID, which can be your US visa.
• Proof of a US address (for example a lease or a utility bill), though some banks are flexible early on.
• An opening deposit in some cases.
• A tax number if the bank asks for one, which is your SSN if you have it, or an ITIN if you do not (see below). Many banks will still open an account without one.

Q. What is the difference between an SSN and an ITIN?

These are two different nine-digit numbers, issued by two different agencies, for two different reasons.

• SSN (Social Security number) comes from the Social Security Administration. It is generally for people authorised to work in the US, and you usually apply for it as part of your visa or immigration process, or at a Social Security office once you arrive.
• ITIN (Individual Taxpayer Identification Number) comes from the IRS. It is a tax-processing number for people who need to deal with US tax but cannot get an SSN. Importantly, an ITIN does not give you the right to work, and it does not grant Social Security benefits. You apply using IRS Form W-7.

For banking, either number can satisfy a bank that asks for a tax ID, and an ITIN can stand in where an SSN is requested.

Q. Does my UK credit history transfer to the USA?

US credit scores are built from US borrowing, and they do not carry over from the UK. However good your British credit record is, in America you effectively start again with what lenders call a "thin file." This affects your ability to get credit cards, car finance, an apartment lease, and later a mortgage.

Common ways newcomers build a US credit history:

• A secured credit card, where you put down a deposit that becomes your limit, then use it lightly and pay it off in full each month.
• Becoming an authorised user on the card of someone with established US credit (for example a spouse who arrived earlier).
• Newcomer or international products from some banks, and services that let certain new arrivals bring across a UK credit reference. These come and go, so compare current options rather than relying on a name.

Q. Why don't I have a US credit score after moving from the UK, and how do I build one?

Your UK credit history stays in the UK. US lenders check the three US credit bureaus, Equifax, Experian and TransUnion, which have no record of you when you arrive. You have what is known as a "thin file", not a bad one, but it can make renting, getting a phone contract or borrowing harder at first.

The US consumer watchdog, the CFPB, explains how a record gets built:

• Paying on time: repayment history is the biggest single factor in a credit score.
• Keeping balances low: using only a small share of your credit limits helps.
• Products for newcomers: secured credit cards (backed by a deposit you pay) and credit-builder loans are designed for people starting from scratch.
• Being patient: a longer history helps, so scores tend to improve over time.

Some people are added as an authorised user on a partner's or relative's US card, and a small number of services and lenders say they can take a UK credit report into account. Check the terms carefully. You can check your US credit reports for free at AnnualCreditReport.com, the official site.