Opening a US bank account in LA as an Aussie

American banking feels like Australian banking from about 2005: cheques, fees on everything and a credit score that starts at nothing. Here's how to get set up without losing a chunk of your savings in the move.

The short version

You can usually open an account in a branch with your Australian passport and a second ID, even before you have a Social Security number. Online sign-ups typically want an SSN [1].
Open a checking account for everyday spending and rent, and a savings account for anything you're not using. Deposits are insured up to US$250,000 per depositor, per bank, per ownership category [2].
Zelle is how Americans pay each other instantly, but it only works between US bank accounts and payments can't be reversed [3].
Compare the exchange rate and every fee when moving money from Australia. The big four banks are often not the cheapest [4][5].
Your Australian credit history doesn't come with you. A secured credit card is usually the first step to a US credit score [6].

What you need to open an account

US banks must verify who you are and record an ID number. The Consumer Financial Protection Bureau (CFPB) says that number can be an SSN, an ITIN, or a passport number and country of issue [1]. Acceptance of foreign passports varies by bank, so check before you go [1].

Bring these to the branch:

Your Australian passport with your US visa and I-94 record
A second ID or document. Options include a Social Security card, a bill with your name and address, or a birth certificate [1]
Proof of your US address, such as a lease or a utility bill [1]
Your offer letter or employment contract, which helps if the banker is unsure
An opening deposit. Typically US$25 to US$100 opens the account, but the balance to avoid monthly fees can be higher [1]

The CFPB warns that without an SSN or ITIN you may only be able to open a non-interest-bearing account [1]. That's fine for your first few weeks. Add your SSN once it arrives; our guide to getting a Social Security number in LA explains how.

Which bank?

LA is served by the big national banks (Chase, Bank of America, Wells Fargo and others), regional banks and a large number of credit unions. The national banks have branches and ATMs all over the county, which helps when you're still working out which side of the 405 you'll live on. Credit unions are member-owned and often have lower fees, though you usually need to qualify through where you live or work. Opening an account at a credit union works much like at a bank [1].

Before you choose, ask each one [1]:

What's the monthly fee, and does direct deposit of your salary waive it?
What are the ATM fees, inside and outside the network?
What does an overdraft cost, and can you turn overdraft off?
Is there a fee to receive an international wire?
Can you get low-balance alerts in the app?

Checking, savings, Zelle and cheques

Account or tool	What it's for	Aussie equivalent
Checking account	Everyday spending, debit card, bills, rent, cheques	Everyday transaction account
Savings account	Holding money, sometimes with interest	Savings or online saver
Debit card	Paying in shops and online from checking	Debit card
Zelle	Instant transfers to people with US bank accounts [3]	PayID / Osko
Paper cheque	Rent, deposits, some bills and refunds	Mostly gone at home
ACH transfer	Bank-to-bank transfers taking a day or more	Standard bank transfer
Wire transfer	Same-day, larger or international payments	Telegraphic transfer

Zelle

Zelle sits inside more than 2,400 bank and credit union apps. You send money to someone's email address or US mobile number, and both of you need an eligible US checking or savings account [3]. Once the recipient is enrolled, the payment can't be cancelled or reversed [3]. Zelle's own advice: only send money to people you know and trust [3]. That means paying your housemate, yes; paying a stranger's "holding deposit" on an apartment you haven't seen, no.

Cheques are still a thing

Many LA landlords and property managers still want the first month's rent and security deposit by cheque or cashier's cheque. Order a chequebook when you open your checking account, and learn how to write one (date, payee, amount in numbers and words, signature). You can usually deposit cheques you receive by photographing them in your bank's app.

Moving money from Australia

The cost of moving money is the transfer fee plus the exchange rate margin, plus any fees charged by intermediary or receiving banks [4][5]. A "fee-free" transfer can still be expensive if the exchange rate is poor [5].

The ACCC found the big four Australian banks were often more expensive than other providers for international money transfers, and rarely the cheapest for US dollars [5]. On an average big four transfer of A$3,138, it estimated consumers could save about A$108 by shopping around [5]. Moneysmart adds that bank transfers can take up to five business days, and money transfer companies are usually the cheapest [4].

Get your US account details. You'll need your account number, routing number and the bank's SWIFT code for incoming international wires. Ask the branch for the exact wire instructions.
Ask your US bank what it charges to receive an international wire.
Compare three quotes on the same day for the same amount: your Australian bank, and at least two money transfer services. Compare the US dollars that land, not the fee.
Check the rate is locked and how long the quote lasts [4].
Send a small test amount first if it's a new provider or new account.
Keep the receipts. You may need them for your tax records [4].

Going the other way, sending from the US to Australia is covered by US remittance transfer rules for transfers over US$15. The provider must disclose fees and the exchange rate, you can cancel free within 30 minutes (unless the money's been picked up or deposited), and you have 180 days to report an error [7]. Our guide to sending money home goes into more detail.

Keep an Australian account open

Most Australians in LA keep at least one account at home for super contributions, HECS, rent from an investment property or trips back. Tell your Australian bank you've moved overseas so it updates your tax residency. Read keeping Australian accounts while abroad for the details.

Remember that once you're a US tax resident, those Australian accounts may need to go on the FBAR if the total tops US$10,000 at any point in the year. Our guide to US and California tax for Australians explains it.

The first credit step: a secured card

In Australia, you can live on a debit card and never think about your credit file. In LA, your credit score affects apartment applications, car loans, phone plans and even insurance quotes. You arrive with no US history at all.

A secured credit card is the standard starting point. You put down a cash deposit (the CFPB uses a US$500 example) and can spend up to that amount [6]. Pay the bill and your available credit resets [6]. Payments are reported to the three nationwide credit reporting companies, and paying on time builds your history [6]. Debit cards and prepaid cards typically don't count [6].

Other options include a credit-builder loan, where a bank or credit union holds the money as savings while you repay it over 6 to 24 months [6]. Some banks offer a secured card to existing customers, so ask at the branch where you open your checking account.

Set up autopay for the full balance each month, keep your spending well below the limit, and after several months of on-time payments ask about moving to a regular card. Our 12-month plan for building US credit has the full playbook.

Common traps

Overdraft fees. US banks can charge for transactions that take you below zero. Switch overdraft coverage off if you can.
Monthly maintenance fees. Often waived with direct deposit or a minimum balance. Ask [1].
Out-of-network ATMs. Both your bank and the ATM owner may charge.
Zelle scams. Payments to a stranger are almost impossible to recover [3].
Converting at the till. When paying with an Australian card in LA, always choose to be charged in US dollars, not Australian dollars.

Ask for bank recommendations in Cooee USA, our Facebook group for Australians in the USA. Members are happy to share which branches handled their passport-only applications well.

Opening a US bank account in LA and moving money from Australia