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Why 'Free' Bank Accounts Are Rarely Free
I have put together a list of which banks do allow non-Americans to apply and I've given you my experience with each bank I've spoken with.
As the title suggests the accounts are 'in theory' free, however in reality they are either going to take a lot of your time or you'll have
to spend a lot of money getting documents notarized.
This is very much the classic solution that you'll find pasted around the internet. E*Trade itself is not a bank but it provides a "cash
management account" with similar facilities.
The information about opening an account with E*Trade is marketed online as a loophole i.e. something that E*Trade would not be happy about
but don't know about. Unfortunately E*Trade do know about this loophole and are making life difficult for people who apply for accounts
now.
E*Trade are a brokerage company and they want clients who are serious about buying and selling stocks and options. They are happy to
help clients who use these features because this is where E*Trade makes their money but they most definitely do not want to see people opening
trading accounts and never using them to conduct any trades.
I had a phone call from my friend who works for E*Trade Hong Kong and she tells me that if one uses the cash management account yet does not
use the brokerage account then within 6 months the entire account could be suspended for non-usage and it's a huge hassle getting the
account restored. E*Trade also are no longer letting people fund their account with cheques that come from businesses (such as Clickbank)
and the websites that claim that this is possible have not been updated.
Another thing that has become very apparent with E*Trade is that they seem to be very happy to throw out applications. I've received over a
dozen emails from Geekcrets members who tell me their mail never arrived. Many of these people sent their application by registered mail so
it seems that E*Trade are just ignoring a lot of applications from non-US residents.
Another disadvantage with E*Trade is that to apply for a Visa Debit card you must deposit a minimum of $1,000 which is often above the budget of
most people.
 HSBC do provide customers in many countries with $US account but not from a US branch. This means that whilst you
can send and receive money in $US you cannot connect the account with most internet service providers like PayPal, 2Checkout etc. You
will also not be able to cash a $US quickly as it can take many weeks to go through the US clearing system.
HSBC suggested that it may be possible to contact a US branch of HSBC and ask if they can contact HSBC in your home country to make an
application however unless you have a long history with HSBC and can show them that you will be using the account significantly it is unlikely
your application will be approved.
Bank of America are happy to provide US Bank accounts however you have to physically go to a branch in America to apply. They have an
online application process but if you don't have a social security number and US drivers licence you are unable to complete it.
Wells Fargo will very reluctantly allow non-Americans to open an account with them if you are prepared to jump through a lot of hoops.
You'll have forms to complete and you need to provide 2 bank references, statements for the last 6 months and notarized documents. I looked
into this but seeing as it costs me $50 for each notarized document I decided that the cost to apply to this free account would be over $100!
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