What kinds of banks exist in the U.S.? 

There are three main types of banks in the U.S. There are national banks, local banks, and credit unions. Here are some things to keep in mind about each type of bank when you choose where to open an account: 

Type of Bank 

National Banks: 

These are large, well-known banks with branches across the country (e.g., Chase, Bank of America, Wells Fargo). 

Local/Regional Banks: 

Smaller banks that operate in specific cities or states. 

Credit Unions: 

Non-profit financial institutions owned by their members (e.g., Self-Help Federal Credit Union, Alliant Credit Union). 

Pros: 
  • Wide availability of branches and ATMs 
  • Strong mobile apps and online banking tools 
  • Offer full services: checking, savings, credit cards, loans 
  • Often accept ITINs and foreign IDs for account opening 
  • More personalized customer service 
  • May be more flexible with documentation 
  • Often support local communities and small businesses 
  • Lower fees and better interest rates 
  • More likely to work with immigrants and underserved communities 
  • Often accept alternative forms of ID and ITINs 

Strong community focus 

Cons:
  • Higher fees and minimum balance requirements 
  • Less personalized service 
  • May be harder to navigate for non-English speakers 

 

  • Fewer branches and ATMs 
  • Mobile apps may be less advanced 
  • May not offer as many financial products 
  • Membership may be limited to certain groups or regions 
  • Fewer branches and ATMs 
  • May have fewer credit card or loan options 

How do I choose the bank that’s right for me? 

When deciding where to open an account, consider: 

  • 🗣️ Language support: Does the bank offer services in your preferred language? 
  • 🫰🏽 Fees: Are there monthly fees or minimum balance requirements? 
  • 📍 Accessibility: Are there branches or ATMs near you? 
  • 🪪 Documentation: Will they accept your ID and immigration status? 

What type of account should I open? 

Once you decide which bank to work with, you’ll need to decide on what type of account to open. The two main types of accounts that most people start with are checking accounts and saving accounts. There are pros and cons to each type of account: 

 

Type of Account 

Checking account: 

a good option for everyday spending 

Savings account:  

a good option for storing money more long-term 

Pros:Easy access and features like bill pay and a linked debit card Your money will earn interest, which helps you build savings 
Cons:  

May have fees or minimum balance rules  

(note: minimum balance rules mean that you must keep a minimum amount of money in your account at all times to avoid being charged a fee) 

Limited withdrawals, may not have features like a debit card 

Key Takeaways: What You Should Know About Managing Money in the U.S. 

  • ⭐ Budgeting helps you stay in control, even if your income changes week to week. Start with a simple plan and adjust as needed. 
  • ⭐ Bank accounts are essential for getting paid, paying bills, and keeping your money safe. You don’t need to be a U.S. citizen to open one. 
  • ⭐ Debit cards use your own money; credit cards use borrowed money. Each has pros and cons—know the difference before you choose. 
  • ⭐ Credit matters for housing, jobs, and future financial options. You can start building it by practicing good financial habits like paying bills on time. 
  • ⭐ Stay alert for scams. Don’t share personal info unless you’re sure who you’re dealing with, and use official sources for financial and immigration help. 
  • ⭐ Free resources are available to help you learn more and make informed decisions.