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Banking basics & opening a bank account

1) Why open a bank/credit union account?

  • Safety + insurance: Your money is insured up to $250,000 per depositor, per insured bank by the FDIC (for banks) or by the NCUA (for credit unions). 

  • Lower fees than check-cashers, easy bill pay, direct deposit, debit card, and a path to build credit over time, which might be needed when you rent houses or apply for loans.
     

2) Pick the right account 

Checking account 

Purpose: Everyday spending and paying bills.

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Features:

- Debit card that is linked to the account where you can easily use the money in your account anytime.

- Direct deposit for paychecks or benefits.

- Online bill pay and money transfers.

- Unlimited transactions.
 

Costs: Monthly maintenance fees (some waive if you meet requirements, e.g., direct deposit).

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Requirements: For interest-bearing accounts, banks often require an SSN or ITIN for tax reporting. If you don’t have one, a non-interest checking account may still be available, and checking account has generally less requirements than saving accounts

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Best for: Daily money use, shopping, bills, receiving income.

 
Savings account

Purpose: Store money for the future or emergencies.

 

Features:

- Earns interest (banks pay you for keeping money there).

- Limited withdrawals (usually 6 per month without penalties).

- Helps build an emergency fund.

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Requirements: Often requires SSN or ITIN for tax reporting).

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Costs: Monthly maintenance fees (some waive if you meet requirements, e.g., direct deposit)。

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Best for: Refugees who want to slowly build savings and keep it separate from daily spending.

 
Bank On–Certified Account
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Bank On is a national program led by the Cities for Financial Empowerment Fund (CFE Fund). Banks and credit unions can get their accounts “certified” if they meet certain standards that protect customers.

These standards make sure the account is:

  • Affordable → Monthly fee is $5 or less, or $10 and waivable (example: waived with direct deposit).
     

  • Safe → No overdraft fees (you can’t spend more than you have, so no surprise charges).
     

  • Accessible → Low minimum opening deposit (often $25 or less).
     

  • Useful → Includes debit card, online bill pay, and direct deposit.
     

  • Transparent → No hidden fees, easy-to-understand rules.

 

Documents needed: Passport, Refugee Travel Document, Employment Authorization (EAD), or other ID the bank accepts. Some accept ITIN instead of SSN.

  • Bank of America – Advantage SafeBalance®
     

  • Chase – Secure Bankingâ„ 
     

  • U.S. Bank – Safe Debit Account
     

  • Wells Fargo – Clear Access Banking

 

3) Documents you’ll likely need 

Banks and credit unions must verify your identity under federal rules. Most ask for:

  • Primary photo ID (one of these typically works):
    • Passport (U.S. or foreign) • U.S. driver’s license or state ID • Refugee/immigration documents (e.g., EAD) • Some accept consular IDs.
     

  • Identification number: You do not always need a Social Security number to open an account. Non-U.S. persons can use an ITIN or a passport/alien ID number; policies vary by institution and account type. (FinCEN.gov)
     

  • Proof of address: Many institutions ask for something with your name and California address (e.g., lease, official mail, utility bill, or a letter from a government agency). Exact lists vary—ask the branch what they accept.
     

* For interest-bearing accounts, banks often require an SSN or ITIN for tax reporting. If you don’t have one, a non-interest checking account may still be available.

 

4) If you need an SSN or ITIN

  • SSN (if eligible): Refugees can apply through Social Security. Start here
     

  • ITIN (if not eligible for SSN): Apply with IRS Form W-7; many VITA/Taxpayer Assistance Centers help for free. (IRS)
     

5) Choose where to bank 

  • Big Banks: Wells Fargo, Bank of America, Chase. (Good for access everywhere, but may have higher fees.)
     

  • Credit Unions: Lower fees, more refugee-friendly (examples: Self-Help Federal Credit Union, Golden 1 Credit Union).
     

  • Community Banks: Smaller, often more flexible.

 

6) Open the account: what happens step-by-step

  1. Visit a branch or apply online. In person is best if you have non-U.S. ID or questions.
     

  2. Bring documents (ID, identification number, and address proof). The banker enters your info to verify identity (a federal requirement called Customer Identification Program).
     

  3. Choose features (debit card, online banking, paperless statements).
     

  4. Make an initial deposit (some accounts are $0; many Bank On accounts have low/no minimums).
     

  5. Get your debit card/PIN (instantly at some branches, or by mail).
     

  6. Set up online + mobile banking so that you can transfer money with your phonebefore you leave with the staff’s help.
     

7) If you’re denied an account (what to do)

Sometimes banks use a “checking account screening” report (e.g., ChexSystems). If you’re denied:

  • Ask why and which report they used.
     

  • You’re entitled to a free copy of that report and to dispute errors under the Fair Credit Reporting Act.
     

  • Try a Bank On–certified or “second-chance” checking account at another institution.
     

Tips:

  • Only send and transfer money to people you truly know. If you authorize a payment to a scammer, it may be hard to get back.
     

  • If someone else moves money from your account without permission (fraud), report immediately—you have protections for unauthorized electronic fund transfers under federal law. (IRS)
     

  • If your card is lost or stolen, report immediately to your bank to avoid lost

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  • Build your credit safely with a secured credit card or a credit-builder loan from a credit union/community bank; pay on time, every time. CFPB has plain-language guides on both. (Consumer Financial Protection Bureau)

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  • Consumer help or complaints: CFPB (federal) and California’s DFPI. 

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