5 Tips for Latin American Migrants Choosing a New Bank When Moving Abroad

People have been migrating from Latin America to other parts of the world for centuries now. In the United States alone, roughly 6% of the entire population was born in a Latin American country.

While there are plenty of reasons to move abroad, many Latin American migrants face a common problem: getting financially established in a new country. Part of this process means finding and choosing a new bank — or another way to safely store and access money while in another country.

Having a bank account can make it easier to pay bills, transfer money, cash checks, and more while abroad. But it does require having the right documentation and meeting certain other requirements.

If you’re thinking about moving from Latin America to another country, here’s what you need to know about picking a new bank.

Gather Documentation

So, can immigrants get bank accounts overseas? The short answer is yes, but you’ll need to have the right documentation.

Every country — and bank — has its own rules and requirements, but here are some of the main types of documentation you’ll need:

• Proof of identity: You’ll typically need a couple of forms of identification to open a bank account. These documents will generally include your date of birth and full legal name. In the United States, for example, most banks require a Social Security number. If you’re migrating from Latin America, you might be able to use a foreign passport or consular ID instead. An Individual Taxpayer Identification Number (ITIN) from the IRS could also work.
• Proof of address: Most banks require you to have proof of a physical address in the country where you’re opening an account. This may include a rental agreement, a utility bill, a letter from an employer, a school admission letter, or something similar that lists your current address. If you’ve been in the country for a while and have paid taxes there, you may also use tax documents.
• Contact information: You’ll generally need a local phone number, email address, and other basic contact information to open an account.
• Proof of residency: You might need to obtain a residency permit or visa indicating you can legally work, study, or live in the country. For instance, many banks in Japan require a Residence Card, or a Zairyu Card, which you can get from a regional immigration office. Learn about the local immigration laws and residency requirements before moving abroad.

Be sure to review any documentation requirements across different banks. That way, you’ll be prepared when the time comes.

And if you’re not quite ready to open an account but you need easy — and secure — access to your money, consider Ria. With Ria, you can pay bills, cash checks, send and receive money, exchange currency, and more from the comfort of your home.

Know What Features to Look For

Part of transferring banks when moving involves knowing which features are available and how to use them. Some of the most important features include:

• Checking and savings accounts: While some banks only offer one option, most will come with a checking and savings account. With a checking account, you can easily access your money for everyday expenses or needs. You can still access money in a savings account, but it’s primarily meant for saving rather than spending.
• Ease of use: The best banks will make it easy to withdraw or transfer money between accounts, pay bills, make deposits, and track your balance over time. Choose one with options for mobile and online banking.
• Brick and mortar vs. digital: Certain banks are only online, meaning they don’t have physical branches. These banks may come with fewer fees than traditional ones, but you don’t get in-person support.
• Debit card: Your checking account will often come with a free debit card you can use to make purchases or access ATMs.
• Direct deposit: If you plan to work abroad, you might want to set up direct deposit. This is a common feature with U.S. banks in particular and one that lets you get paid sooner if you have a job in the country.
• ATM Network: Some banks offer thousands of free in-network ATMs. This means you can make transactions at the machine without any fees. Other banks will reimburse you for ATM fees up to a certain amount.
• Customer service: Phone- and email-based customer service are fairly standard with banks. But if you’re looking for ease of use, or if you’re worried about language barriers, look for one with an online chat feature.
• Security features: Choose a bank with advanced security features that’ll keep your money safe. In the U.S., for example, you can often find banks that are FDIC-insured up to $250,000. This means your money is protected in case the bank fails. Many banks will also have account monitoring, text alerts, multi-factor authentication, and other security features.
• Other convenient features: Additional features to look for include mobile check deposits, mobile apps, free saving and budgeting tools, and goal tracking.

Compare Good Banks for Immigrants

With so many options, you might not know how to pick a new bank that’s right for you. At the very least, sorting through the different institutions can be tricky.

One way to make it easier is to search online for banks that specifically work with Latin American immigrants. Your search terms could be something like “Which bank is best for new immigrants?” Or it could be something like “banks for Latin American migrants.”

See what comes up and make a shortlist of three to five banks based on things like:

• Online ratings: Find out what other people are saying about the bank. In the U.S., you can use sites like the Better Business Bureau (BBB) or Trustpilot to check other customer reviews, complaints, and other feedback.
• Features: Check each bank’s top features and determine whether they meet your needs.
• Fees: Many financial institutions come with fees. Look for a bank with few to no fees or ones you can easily avoid.
• Account requirements: Some bank accounts come with additional requirements. For example, you might need to deposit a certain amount of money to open an account. You might also need to keep a minimum balance of, say, $25 to $100, to keep your account or avoid fees.
• Account restrictions: Some banks will limit how many withdrawals or transfers you can make in a month, or how much you can take out from an ATM each day. Read the fine print carefully when choosing an account.
• Ease of opening an account: It’s generally easier to open a new account with a mainstream bank, such as Wells Fargo, or Latin American-owned credit unions.

Ultimately, it’s up to you to decide which bank is best. It doesn’t hurt to compare your options, so take your time and think about where you want to put your money while abroad.

Compare Fees

Before choosing a bank, look at the different fees that come with having an account. Keep in mind that fees can vary depending on the institution and where you move.

If you’re migrating from Latin America to the United States, here are some of the more common fees:

• Overdraft fees: An overdraft fee occurs when you try to make a purchase, withdraw money, or make a transfer from an account that doesn’t have enough money in it. Fees vary but typically are around $35 per transaction. Some banks also charge daily overdraft fees, meaning you’ll incur a fee every day until you deposit enough money back into the account. You may be able to avoid this fee by setting up overdraft protection.
• ATM fees: You might be charged for using an ATM, especially if it’s an out-of-network machine. Fees are usually a few dollars per transaction.
• Monthly maintenance fees: Some banks — especially traditional banks — charge this fee simply for having an account. However, you might be able to waive this fee by keeping a certain minimum balance in your account or by linking your savings and checking accounts.
• Wire transfer fees: A wire transfer is a way of moving money from one bank account to another electronically. You can do this between domestic or international accounts. Fees may be a set amount or a percentage of the transferred amount.
• Card replacement fees: Most checking accounts come with a free debit card, but you might have to pay to get a new one if yours gets lost, stolen, or stops working.
• Non-sufficient funds (NSF) fees: If you overdraw your account, you might also be charged an NSF fee. This can stack with any existing overdraft fees if you’re not careful.
• Other fees: Less common charges include phone inquiry fees for calling the bank and stop payment fees for canceling a transaction. You might also be charged for going above the bank’s transfer or withdrawal limits or for letting your balance drop below the minimum.

Compare Perks and Rates

As you go about finding a new bank abroad, look for ones that offer incentives or other perks. This could include:

• Welcome bonuses: Some banks offer a welcome bonus for opening an account. You’ll typically have to meet certain requirements — like maintaining a certain account balance — to qualify.
• Freebies: You might also find freebies like checks, custom debit cards, or extra debit cards.
• No fees: In some cases, a bank will temporarily waive its fees to try to incentivize new people to open an account. Make sure you’re aware of the terms and how long this fee-free period lasts so you don’t get blindsided.
• Cashback rewards: Some of the best banks offer cashback rewards for using their debit or credit cards. This means you can earn money simply by using the card on everyday purchases. If you do use a credit card, make sure you pay off the full balance every month so you don’t get charged interest.

If possible, choose a bank with a good interest rate — sometimes called an annual percentage yield (APY). This is especially important if you plan to use the account for a long time and want your money to grow on its own.

Here’s what you can typically expect with different types of bank accounts and their yields:

• Checking account: Brick-and-mortar checking accounts usually don’t earn much interest, but some online-only banks will offer a better rate.
• Savings account: Most standard savings accounts will have a higher APY than checking accounts. The national average APY on these accounts is 0.59%, but some banks offer a much higher yield.
• High-yield savings account (HYSA): These accounts can have APYs ranging from 1% to 4% or higher. The highest possible APY is currently 6.08%. The higher your APY, the faster your money can grow. HYSAs may have stricter requirements than other accounts, but many banks will still offer them to Latin American migrants.

Again, every country is different. You might not earn interest on your money at all in some places, while you could earn more — or less — in others. Find out what’s available, compare rates, and choose the best option.

Choosing a Bank as a Latin American Immigrant

Regardless of where you decide to move, it’s good to know your options when it comes to your banking needs. It can take some time to find a new bank that has everything you’re looking for — and doesn’t charge many fees — but it’s definitely doable.

The good news is that you can open a bank account in a foreign country as a Latin American. You’ll just need to be aware of that country’s (and bank’s) requirements and regulations. Knowing these things ahead of time can make the entire process much more seamless — and far less stressful.

If you don’t have a bank account just yet, you can still use Ria to manage your finances, send or receive money, pay bills, and more. There are no hidden fees, and Ria strives to keep rates as low as possible.

Ria also lets you make international transfers in over 165 different countries, including many in Latin America. This means you can send money back home as needed.

FAQs

Do you need to transfer banks when moving?

If you already have a bank account and are moving to a new place in the same country, you can generally keep your account. This is even easier if you have an online bank. If you’re with a traditional bank and don’t have access to physical branches or in-network ATMs, you might want to switch to a new one.

Can immigrants get bank accounts?

A non-citizen can open a bank account. However, you might need to provide additional documentation verifying your residency and identity.

Do Latin American migrants need to show immigration papers to open a bank account?

You don’t need to show immigration papers or prove your immigration status to open a bank account, at least not in the United States. Other countries might have their own laws or regulations.

Can opening a bank account help build credit?

Typically, bank accounts on their own won’t help you build credit. You can, however, use the account to start building a financial foundation in your new home. With an account, you can also do things like apply for a credit card or loan — responsible use of which can help you build credit over time.

Does immigration help the economy?

Yes, immigrants can help the local economy by filling gaps in certain sectors, meeting demand, and even strengthening social security programs in the new country.