Did you know that America has more banks than anywhere else in the world?

Around 4500, to be precise—about as many as the entire EU put together. But that’s nothing compared to the 1920s, when there were nearly 30,000 banks in the U.S.

These so-called ‘small banks’ are a curious hang up of earlier days when nobody trusted big banks in America. The ‘branch banking laws’ essentially made it illegal to operate a bank out of more than one building, with the charming result that every little town ended up with its own bank.

However, if you’re a Brit coming to the States to live and work, you probably won’t be choosing a small bank. Big banks are very standard in the U.S. and (in case we need to clarify this) perfectly trustworthy. The process of opening up a bank account and building your credit score can be a little bit more complicated than in the UK, so we’ve broken down basics for you.

Pick the Right Bank

Step one is pretty obvious, but as already mentioned, there’s a lot of banks in the U.S.. Some of the big ones are Chase, Bank of America, and Wells Fargo, but you’re also free to check out smaller, regional banks or credit unions which can offer lower fees and a more local feel.

Here’s a basic breakdown of the pros and cons of some of the biggest banks in America:

Chase

• Pros: Chase is a great ‘all-rounder’. Plenty of branches and ATMs. Wide selection on everything from checking and savings accounts to mortgages, credit cards, and investment services. And the mobile app is very good.

• Cons: Expensive. In fact, Chase tends to have higher fees than many competitors, including monthly account fees. However, these can be waived if you meet certain requirements like maintaining a minimum balance. Also, they don’t have the best reputation for customer service.

Bank of America

• Pros: Like Chase, Bank of America has a decent all-round reputation. They’re easy to access, either via their well-designed mobile app or one of the 4000+ national branches. They also offer popular credit cards with attractive rewards, especially if you’re a Preferred Rewards client.

• Cons: Like Chase, Bank of America charges monthly maintenance fees, which may be harder to avoid for lower-tier accounts unless you meet specific conditions.

Wells Fargo

• Pros: Wells Fargo have a good reputation for in-branch service, so they might be for you if you prefer face-to-face banking. They also offer lower fees than Chase or Bank of America. However, their services might not be quite as extensive as the others.

• Cons: Despite their face-to-fece friendliness, Wells Fargo has suffered significant scandals in recent years related to unethical practices, which has impacted trust. And their mobile app is generally considered to be worse than Chase or Bank of America.

Again, there are plenty of other banks out there, both big and small. So we advice you take a bit of time to compare account options and fees to see what works for you.

Get Your Documents Ready

Once you’ve chosen the right bank, you’ll need the right documents together. In most cases, you’ll need to bring:

• Proof of identity: Your passport or U.S. driver’s license.
• Proof of address: A utility bill or rental agreement.
• Immigration status: A visa or green card.
• Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN): Some banks require these, but not all, especially if you’re new to the country.

If you don’t have an SSN or ITIN yet, it’s still possible to open an account at some banks with just your passport and visa.

Difference Between a Checking or Savings Account

Believe it or not, cheques—or as you’ll soon be spelling them, checks—are still a thing, at least in some areas of American culture. You may find yourself writing one to pay an accountant or even the State when it comes to filing your taxes, so be ready for that. (Interestingly, this is also where the term ‘checking account’ comes from.) It’s essentially the equivalent of a UK ‘current account’, and in almost all cases, this will be the one you want.

A savings account is more for acquiring interest, though as a foreigner you’re unlikely to be given an interest rate of more than about 0.2%, unless you’ve got a LOT to invest.

To recap:

• Checking accounts are the most common and are used for day-to-day transactions like paying bills and making purchases. They typically come with a debit card.
• Savings accounts are better for putting money aside and earning a bit of interest. Rates are unlikely to be very high but they vary between banks, so as with everything, it’s worth shopping around.

It’s also pretty normal for a bank to open up both at once, which might be the best solution.

Apply at a Branch or Online

Some banks let you open an account online, but as a non-citizen, we’d highly recommend you go to a branch in person. That way, you can show your documents and ask any questions on the spot. This will also give you a chance to enjoy some of that famous ‘American customer service’ charm.

Be Aware of Fees

U.S. banks tend to charge various fees, so it’s good to know what to expect. You might come across:

• Monthly maintenance fees (which are sometimes waived if you keep a certain balance).
• ATM fees, especially if you use a machine that isn’t part of your bank’s network.
• Overdraft fees, if you spend more than you have in your account.

Make sure to go over the fee schedule with the bank to avoid any surprises.

Set Up Online Banking

Once your account is open, you’ll usually get a debit card within a week or so. Most banks offer online and mobile banking, which will let you manage your account, pay bills, and transfer money with ease.

A Note on International Transfers

You’ll almost certainly need to send money between your UK and U.S. accounts at some point. This can be a tricky procedure so we highly suggest you take a look at this post from our trusted partners at Halo Financial.

We’ve also put together a quick guide to the wild world of international transfers in our ‘Transferring Money from the UK to the U.S.‘ post. Be sure to check out all the options and find what works for you.

A Note on Cashing UK Checks in the U.S.

Occasionally you may receive a UK check while living in the U.S. This generally shouldn’t be a problem for your bank but you should be aware of a few things.

First, when you cash a UK check in a U.S. bank, be sure t go in person, not the drive-through or the deposit box or anything like that. It’s possible your teller may be confused at first, so be prepared to persevere. There will likely be a few additional forms to fill out, then your bank should convert the amount to dollars and give you the exact sum, i.e. not rounded out.

Final word of warning: some banks charge an additional fee to process international checks, and this fee can be hefty. So if you think you’re going to be getting checks from oversees, be sure to inquire when choosing your bank and pick one that will do for free.

Building Credit in the U.S.

We hate to break it to you, but your UK credit score generally won’t be travelling with you to the U.S.. Which means you’ll have to start from scratch if you want to build up credit, which is absolutely crucial for accessing loans, renting property, and a whole lot more.

There’s no escaping the reality that it’s going to take time and consistency to build your credit score in the U.S., but here’s a few handy tips that could make the journey a lot easier.

Start with a Secured Credit Card

A secured credit card is one of the best options for newcomers without a credit history. You’ll need to make a deposit, which acts as your credit limit. Use this card responsibly—make small purchases and always pay the balance in full by the due date. Timely payments are crucial, as they build a positive credit history, which is the foundation of your score.

Apply for a Credit-Builder Loan

Another good option is a credit-builder loan, often available through credit unions or smaller banks. Unlike traditional loans, the money you borrow is held in an account while you make payments, and you’ll get access to it once the loan is repaid. These payments are reported to credit bureaus, helping you establish credit without the risk of falling into debt.

Become an Authorised User

This could be a great option if you have a trusted friend or family member/ spouse in the U.S. with a good credit history, ask to be added as an authorised user on one of their credit cards. You’ll benefit from their credit activity, which can help jump-start your own credit history.

Keep an Eagle Eye on Your Credit

Finally, the best advice is just to keep a careful eye on your score and adjust your spending accordingly. Consider using a free tool like Credit Karma that allows you to track your progress, ensure all information is accurate, and avoid applying for too many credit lines at once, which can lower your score.

Rounding it Up

We hope you enjoyed this whistle-stop-tour through the brilliant world of banking in America. For further tips and advice, take a look at our other posts and feel free to reach out with any questions or comment below if you think we’ve missed something important.