Bank account x digital account in the USA: which is the best option for those who live or travel abroad?
If you are one of the thousands of people who live or frequently travel to the United States, you know that having a bank account in the country can make your financial life much easier. But do you know the differences between a traditional bank account and a digital account in the US? And which one is the best option for your profile and needs? In this post, we will explain the main characteristics, advantages and disadvantages of each type of account, and how to choose the most suitable one for you.
What is a traditional bank account in the US?
A traditional bank account in the US is one you open at a physical bank, such as Bank of America, Chase or Wells Fargo. To open an account of this type, you need to go to a bank branch in person, present some documents (such as a passport, visa and proof of address) and fill out a form. Depending on the bank, you may also need a social security number (SSN) or a tax identification number (ITIN).
A traditional US bank account generally offers the following services:
– Debit card, which allows you to make purchases and withdraw funds in US dollars.
– Checks, which can be used to pay bills or transfer money to other people.
– Bank statement, which shows the balance and transaction history of your account.
– Internet banking and mobile application, which allow you to access and manage your account online.
– Customer service, which can be provided by phone, email or chat.
Some advantages of having a traditional bank account in the US are:
– Security, as banks are regulated by the American government and offer protection against fraud and theft.
– Convenience, as you can use your account to pay bills, receive wages or benefits, and make transactions with other people who also have accounts in the US.
– Acceptance, as the US dollar is one of the most used currencies in the world and debit cards are accepted in most commercial establishments.
Some disadvantages of having a traditional bank account in the US are:
– Cost, as banks usually charge monthly maintenance fees, fees for ATM withdrawals, fees for international transfers, fees for using the card abroad, among others.
– Bureaucracy, as banks require several documents and forms to open and maintain your account, in addition to imposing limits and restrictions for some operations.
– Difficulty, as banks may refuse or take time to open your account, depending on your immigration status, financial history or tax situation.
What is a digital account in the US?
A digital account in the US is one that you open on an online platform, such as Remessa Online, TransferWise or N26. To open an account of this type, you simply need to access the platform’s website or application, provide some personal data (such as name, email and telephone number) and verify your identity (with a photo of your passport or identity document). . You don’t need a social security number (SSN) or a tax identification number (ITIN) to open a digital account in the US.
A digital account in the US generally offers the following services:
– International debit card, which allows you to make purchases and withdraw funds in various currencies, including US dollars.
– International transfers, which allow you to send and receive money in different currencies, with low fees and transparent exchange rates.
– Online bank statement, which shows your account balance and transaction history in real time.
– Internet banking and mobile application, which allow you to access and manage your account online simply and quickly.
– Online customer service, which can be provided via chat, email or social media.
Some advantages of having a digital account in the USA are:
– Savings, as online platforms do not charge monthly maintenance fees, fees for ATM withdrawals, fees for international transfers, fees for using the card abroad, among others.
– Practicality, as online platforms do not require documents or forms to open and maintain your account, in addition to allowing you to make transactions with people who have accounts in other countries or currencies.
– Ease, as online platforms accept and approve your account quickly, regardless of your immigration status, financial history or tax situation.
Some disadvantages of having a digital account in the US are:
– Security, as online platforms are not regulated by the US government and may offer less protection against fraud and theft.
– Convenience, as you cannot use your account to pay bills, receive wages or benefits, or make transactions with others who only have accounts in the US.
– Acceptance, as the international debit card may not be accepted in some commercial establishments or ATMs.
Which is the best option for you?
The choice between a traditional bank account and a digital account in the US depends on your profile and needs. If you have lived in the US for a long time, have a regular immigration status, receive income or benefits in the country, and need to transact with others who also have accounts in the US, a traditional bank account may be better suited for you. If you have only been living in the US for a short time, have an irregular immigration status, receive income or benefits in another country, and need to transact with others who have accounts in other countries or currencies, a digital account may be better suited for you.
In any case, it is important that you compare the characteristics, advantages and disadvantages of each type of account, and choose the one that best suits your lifestyle and your budget. Also remember to check the rates, limits, restrictions and conditions of each bank or online platform before opening your account.
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