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This week we delve into the nuances of opening a US bank account from TT. This guide aims to provide clarity and direction for individuals and businesses facing forex challenges locally.
TT’s forex challenge
The scarcity of US dollars in TT has significantly affected the economic landscape, particularly for businesses reliant on international transactions. The government acknowledges this forex shortage, leading banks to impose stringent limitations on US$ access. This situation has escalated to the point where one of the largest banks, Republic Bank, has halved the US$ cap on credit cards, severely affecting purchasing power, especially for micro and small enterprises.
Why a US bank account?
A US bank account offers a strategic advantage, mitigating the forex issue by providing unrestricted access to US$. This is crucial for businesses doing online transactions, individuals who travel frequently, and those receiving funds from abroad. The benefits are clear – full fund accessibility, international card usage, and simpler, cost-effective money transfers from overseas.
Opening a personal US bank account
Requirements and process:
To open a personal US bank account, physical presence in the US is mandatory. Prospective account holders can approach banks like Bank of America, Chase, TD, Citibank, and Wells Fargo, which offer noncitizen accounts. Essential requirements include two forms of TT ID (passport, driver’s license) and proof of a US address. Proof of address can be established through various means, such as being added to a family or friend’s bill (think phone bill); you can have a family or friend draft a lease agreement to show that you live there (banks accept lease agreements); or you can use the USPS change-of-address website. You would input the address of a family member or friend and then give a new address for where you would like to receive your mail, preferably another family or friend who would accept mail on your behalf. USPS will then send an official change-of-address document to the new address listed, which you can use when opening a bank account. The cost is US$1.10 online. Banks in the US do not require an appointment; you can walk in with the necessary documents and open a US account. You do not need an SSN to open a non-citizens’ US account.
Business accounts: Remote setup
Businesses can remotely set up US accounts through third-party companies that handle the business registration and banking processes. These entities assist in obtaining an Employer Identification Number (EIN), which gives you more flexibility in banking services. Options include Start Global, First Base, Jump Start Filings, and Doola, with Mercury Digital Bank recommended for its digital banking flexibility. With the EIN, you can open a bank account with any institution of your choice.
Funding your US account
Funding mechanisms are vital for maintaining liquidity in your US account. Options include transfers from TT to US PayPal accounts; Western Union Direct for direct bank transfers (once you have the name, address, routing number, and account number, you can directly deposit cash into your US accounts); cash deposits during US visits; and receiving online client payments (think PayPal, Stripe, Zelle, Cashapp, Payoneer, and Wise). These methods ensure continuous access to US$. Every month, I send money to my US bank account, so that I am never in a position where I don’t have US$ when I need to do business online or when I travel.
Owning a US bank account while living in TT offers a solution to the forex dilemma for those who need it. It empowers businesses and individuals with financial autonomy, essential for global engagement.
People have become so conditioned to applying for their own US$ in banks that they believe this is the norm. Folks, it is not! Nobody should have to apply or ask for money that is in their account. Nor should we be limited in what we do with our money because of the cap on US$ on our credit cards. This doesn’t solve the forex issue – it isn’t meant to – but it gives people options to doing business or minimizing their issues when they need to travel.
Asking for a higher US limit on your credit card is a solution for some, but most people cannot get it, and you are still subjected to lending criteria.
The journey to opening a US bank account from TT, while necessitating careful planning and execution, is a worthwhile endeavor for those seeking to overcome the limitations imposed by the local forex scarcity.
For any questions on taxes, consult your accountant.
Keron Rose is a digital strategist who works with businesses to build their digital presence and monetize their platforms. Learn more at KeronRose.com or listen to the Digipreneur FM podcast on Apple podcast, Spotify, or Google.
