How to Set Up a Bank Account Out of State

Written by Jennifer Mueller, JD

Last Updated: July 11, 2024 References

There are many legitimate reasons you may want to keep your money in a bank that operates in another state, or even overseas. Particularly if you have property or business interests in another state, using a local bank may make more sense than using an existing account in the state where you reside. However, be aware that moving your money to another state or offshore may not allow you to protect it from legal judgments or other obligations.^{[1]
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Method 1

Method 1 of 3:

Opening a Personal Account

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1
Evaluate possible banks. To set up a personal bank account out of state, look at the banking options available to you in the other state to find the financial institution that will best meet your needs. Issues you may want to consider include operating hours, locations of branches, and online access.^{[2]
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- For example, if you have a vacation home in another state and want to open a bank account there, you might want to look at banks with branches near that vacation home that have weekend hours.
- Keep in mind that if a bank has branches in your resident state, this isn't truly getting a bank account out-of-state. The branch in your resident state technically will be considered your home branch, although you can use branches anywhere.
- This is important if you're trying to open a bank account out of state because you want to shield assets from garnishment after a judgement against you.
- While judgement creditors may not be able to garnish assets out of state, if the bank has a branch in the state where the judgement was entered, they are still within the court's jurisdiction regardless of where you technically opened the account.
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Review account requirements. While most national and larger regional banks have similar requirements and types of accounts, smaller local banks may have additional requirements with which you're not familiar.^{[5]
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- Generally, you must be a legal U.S. resident over the age of 18 to open a checking or savings account in any U.S. bank.
- If you've previously had a negative banking relationship, including bounced checks or an account that went into overdraft, other banks may not be willing to open a checking account for you.
- However, you still may be able to open a savings account even if you aren't eligible for a checking account. Since many banks offer debit cards for savings accounts as well as checking accounts, this option may still work for you.
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3
Find out if you can open your account online. Most national and larger regional banks allow you to complete your application and open your account on their websites. Some smaller local and regional banks also may have a similar degree of accessibility, or you may have to visit a branch in person.^{[7]
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- Opening an account online won't work to establish an account out of state with some banks. The bank may require you to enter your state before allowing you to continue, and may not have the option for you to open an account if you live in a state in which that bank has no branches.
- However, in other banks you may be able to open an account online where you wouldn't be able to do so in person. For instance, some banks do not allow you to open an account in person at a branch if you have an out-of-state driver's license.
- You will have to enter your home address, driver's license information, and Social Security number on the application to open a bank account.
- Depending on the details you enter, the bank may require additional information. You also may have to mail or fax copies of identification documents, such as your driver's license or Social Security card, so the bank can verify the information you provided on your application.
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Contact customer service. If you have any problems or don't feel comfortable opening your account online, you typically can complete the application over the phone by calling the bank's customer service line.^{[10]
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- You should be able to find a toll-free number on the bank's website. Call that number and follow the prompts to speak to a representative.
- Keep in mind that some banks may not allow you to open an account over the phone. Those that do may require you to mail or fax copies of identification documents so they can verify the information provided.
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Fund your account. Once your application is approved, you typically must make a minimum deposit to fund your account within a brief period of time after the initial set-up is complete. The amount you're required to deposit depends on the bank and the type of account you've chosen.^{[12]
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- You typically will need to make this deposit through wire transfer. Since you're transferring to a domestic bank, there may not be any processing fee.
- However, be aware that your bank may charge a small fee to initiate the transfer to another bank, depending on the type of account from which you're withdrawing funds to make your initial deposit.
- Other options to fund your account include mailing a check or money order to the bank, or visiting a branch in the other state and making a deposit in person.
- If you opened your account online, the bank typically will give you options to choose if you want to deposit funds into your account electronically.

Method 2

Method 2 of 3:

Setting Up Business Accounts

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1
Register to do business in the state. Even though having a bank account in another state doesn't necessarily mean you are doing business in that state, most banks require your business to be registered with the secretary of state before they will open a business deposit account.^{[13]
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- The registration requirement also may apply if you're operating your business as a sole proprietorship or partnership, even though the state may not require you to register.
- Many states allow you to register your business online. Search for the state's secretary of state website and then look for a link to register your business.
- You may have to pay a fee to register your business in the state, typically around $100. You may have to pay additional fees if you want to expedite your application, or to get additional certified copies of your certificate.
- If you have any questions about whether you need to register your business with the state, talk to someone at the bank where you want to open an account.
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Choose the bank you want to use. Different banks have many different features and options for business accounts. You may want to make a list of the features that are important for your business so you can find the bank that is right for you.^{[15]
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- For example, many banks have a monthly service fee attached to accounts, and you may have additional fees depending on the number of transactions you have in a month.
- Different accounts also may have different levels of access with respect to withdrawals and domestic wire transfers allowed per month.
- You can compare accounts to choose the best account for your business based on the number of transactions and minimum balance you anticipate for your account.
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Speak to a representative. A customer service representative will be able to answer any questions you have and help you set up your account. Unlike personal accounts, you typically cannot set up a business account online.^{[17]
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- Look on the bank's website to find the appropriate customer service number. Keep in mind some banks may have a different line for business accounts than for personal accounts.
- Follow the prompts to talk to a representative, and tell them you'd like to open a business account. Be sure to let them know that you reside in a different state.
- They typically will ask you questions about your business, including whether your business operates in the state and whether you're registered with the secretary of state or the state department of revenue.
- If you begin your application over the phone, you typically must mail or fax copies of any documents required to verify your identity and information you provided about your business.
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Make your opening deposit. After your paperwork is complete, you still must provide a deposit of at least the minimum amount specified by the bank to complete the set up of your business's bank account.^{[18]
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- If the account type you chose requires you to maintain a minimum deposit, your initial deposit must be at least that much.
- Some banks may have a particular minimum initial deposit, regardless of the minimum you're required to maintain to avoid monthly fees.
- To move money to an out-of-state bank, your easiest method would be to initiate a wire transfer from the bank where you're currently holding the funds you want to transfer.
- You also may be able to make an initial deposit by sending a certified or business check to one of the bank branches.

Method 3

Method 3 of 3:

Protecting Assets with an Offshore Account

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1
Speak to a domestic banker. Some larger banks have advisors who can assist you if you want to set up an account overseas, whether for your personal investments or for your business. Having a banker's assistance can help you navigate some of the more complex requirements more smoothly.
- Different countries have different banking regulations, and not all banks allow U.S. customers to open accounts.
- Additionally, there may be more stringent funding requirements than you would find if you were opening an account at a bank within the United States.
- If you already bank with a larger national bank, go to the website and see if they have an international banking department.
- You also may be able to find assistance by calling customer service or speaking with a banker inside a branch.
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Meet the verification requirements. Offshore banks require more documents to verify your identity than may be required for a domestic account. In addition to providing information on an application form, you'll need to submit government-issued identification documents such as your passport.^{[19]
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- You may need to supply copies of your driver's license or Social Security card. For tax purposes, the bank also may need to verify your residence. A utility bill or similar document typically will work for this purpose.
- Because of the wide variety of identity documents, if you're opening a bank account overseas the bank may require a notarized or certified copy to ensure what you've sent them isn't forged or falsified.
- Getting the correct certification on your documents may require you to visit an authorized government office. The bank typically will let you know how to do this.
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Submit financial documentation. In addition to personal information, you also must submit financial records and information so the offshore bank can verify your source of income and your banking history.^{[20]
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- While these requirements may seem intrusive or time-consuming, they are designed to prevent offshore accounts from being used for illegal purposes such as money laundering or tax evasion.
- An offshore bank typically will request bank statements going back six months to a year, as well as wage statements or sales contracts that indicate the source of the money you want to place in the account.
- Keep in mind that although offshore bank accounts are frequently associated with multimillionaires, you don't necessarily have to be incredibly wealthy to have an account overseas.
- When international banks look at your banking history, what they want to know is how long you've had your accounts open and whether you have a positive relationship with your bank – not necessarily how much money you have in your accounts.
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Choose a currency. When you open a domestic account, the currency automatically is the U.S. dollar. However, if you open an offshore account you'll need to decide the currency in which you want your funds held.^{[21]
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- Before you decide to hold funds in a currency other than your own domestic currency, make sure you ask a bank representative about the tax implications.
- For example, you may elect to hold funds in the domestic currency of the country where the bank is located, which would enable you to earn interest on the funds in your account. However, earning interest in that country may subject you to tax liability there.
- You also want to be careful about exchange rates. Before you elect to hold your funds in a different currency, research the exchange rate over a long period of time and assess the overall stability of that currency.
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Transfer your funds. Once your paperwork has been approved, you'll have to make your first deposit into your account. The main way to deposit funds into an offshore account is through a wire transfer, for which you can expect to incur additional charges or processing fees.^{[22]
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- Keep in mind that nearly every bank will charge for an international wire transfer. However, these fees vary, so it may be worth it to shop around for the best deal.
- Since you likely will be depositing a large sum as your initial deposit, there's really no other way to get money to an offshore account.
- Foreign banks won't accept domestic checks, and you would run a serious personal safety risk if you carried cash overseas.