Bank accounts are convenient and safe ways to access cash, pay bills, and begin saving. Unfortunately, there’s a common misconception that undocumented immigrants can’t have these accounts. The information below will help clear up this misunderstanding. 

A Guide to Undocumented Immigrants & Opening Bank Accounts

Why Account Access Is Helpful

Having a bank or credit union checking account opens a new path to the financial mainstream. It’s much more secure than storing your money in a shoebox under the bed. You can use your debit card for daily transactions and begin to earn interest. Savings accounts will also help you save toward long-term goals. This includes building a nest egg for your child’s college expenses, starting an emergency fund, or preparing a down payment on a house. Having an account is generally also one of the requirements to be approved for a loan or credit card. Lenders will review your bank account activity to determine if you’re responsible with managing your funds. 

How Individual Taxpayer Identification Numbers (ITINs) Work

Most financial institutions require government-issued identification, such as a Social Security card, to open an account. While undocumented immigrants won’t be able to supply this documentation, there are alternative means of identity verification, such as the ITIN. 

The IRS generates these numbers so that noncitizens can file their federal income tax returns. To apply for an ITIN, you must provide either your passport or two other documents establishing your identity, such as a current national identification document, a U.S. or foreign driver’s license, a foreign voter registration card, or a visa issued by the U.S. Department of State. You must also supply a copy of your federal tax return and a completed W-7 form. It typically takes up to eight to 10 weeks for processing.

What to Do Once You Have an ITIN 

To open an account, credit unions and banks may also request additional confirmation of your identity, such as a consular ID or your birth certificate. Proof of current residency, such as an apartment lease or utility bill, may also be needed. If all items are received, verified, and approved, your financial institution will grant you access to all the conveniences of a checking account.

You can access all the financial services banks and credit unions offer. North Jersey Federal Credit Union in Totowa, NJ, is the area’s premier financial institution. If you live, work, or worship in Bergen, Essex, Hudson, Middlesex, Morris, Passaic, and Union counties, you’re eligible to become a member. Visit the website to learn more about joining. If you have questions about the ITIN application process or this credit union’s products and services, call (973) 785-9200 today.