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Having a US bank account can simplify managing funds for Indian businesses and freelancers operating with US clients. Payments are faster, currency conversion fees are lower, and the account integrates well with PayPal, Stripe, or other payment providers.
In this guide, we will discuss how to open a US bank account online from India, the requirements, and the best options for managing cross-border payments efficiently.
A US bank account for Indian residents generally works as a virtual account, providing basic banking services such as receiving and sending USD funds. These accounts can be managed through neo-banks, payment platforms, and international banks without having to visit the US physically.
Account Creation
Platforms like Karbon, Wise, Payoneer, etc. allow Indian users to create virtual US accounts online. These accounts come with US bank details, such as an account number and routing number.
Receiving Payments
Clients in the US can transfer funds directly to your virtual account using domestic payment methods like ACH or wire transfers (which are free). This eliminates international transfer fees.
Converting Funds
Once you receive payments in USD, you can convert them at competitive exchange rates and withdraw them to your Indian bank account.
Payment Gateway Integration
Virtual US Bank accounts can be easily connected with PayPal or Stripe for payment purposes, thereby collecting the money earned from US clients.
Opening a US bank account online from India is straightforward if you have the right documents. Here’s what you’ll need:
All documents must be current and scanned to make online submissions uncomplicated.
It is quite easy to open a US bank account online from India given the advanced technology in digital banking and specialized financial platforms. Here's a step-by-step guide that can make it even simpler for you to get started:
Step 1: Selecting the Right Provider
Based on your requirements, you can choose from various providers like Karbon, Payoneer, Neteller, etc. that offer US bank accounts for non-residents. In our example, we’ll be using Karbon Forex as the provider.
Step 2: Register Online
Go to the Sign Up link on Karbon’s website and start an account registration process. Create an account by providing an email address or phone number.
Step 3: Validation
Signing up will give you access to Karbon’s modern dashboard. Here you can submit necessary documents like a PAN card, proof of address, and business registration documents (where applicable). You need to complete the KYC procedure.
Step 4: Receive US Bank Account Details
After the documents are validated, Karbon will provide you with a US Bank Account with our partner bank JP Morgan Chase. This account will be based in the US, with a US bank account number, SWIFT code, and routing number.
Step 5: Start Using Your Account
Share your US bank account details with your clients. You can now use this account to receive payments, change the funds into INR, and withdraw them to your Indian bank account.
Most providers use a similar procedure for opening a US bank account from India.
Different platforms have varying fee structures, and knowing these details can help you make informed decisions. Here’s a breakdown of common costs:
*Fees and charges listed above are subject to change. Please verify with each service provider for the most current information.
This table provides you a brief overview of the costs and fees for US bank account from India. For a more detailed comparison, please take a look at our article comparing different virtual US bank account providers.
Karbon simplifies cross-border payments for Indian businesses and freelancers and provides all the functionalities of a US bank account. You can better manage your international transactions, whether it’s receiving payments from international clients or paying contractors who are based abroad. Here's what makes Karbon different:
Quick Onboarding: Karbon specializes in opening US bank accounts for Indian customers.
Competitive Forex Rates: Karbon offers live exchange rates with 0% markup.
Streamlined Integration: Connect your Karbon account with US banking services and enjoy a central location for all your payments.
Regulatory Compliance: Karbon has been built to meet global compliance regulations so you can easily maintain an international presence.
A US bank account accessible from India will be beneficial for both you and your clients. Karbon can help you scale your global ambitions. Join Karbon today and start sending and receiving money in 2 hours!
Yes, platforms like Karbon, Wise, Payoneer, etc. offer virtual US bank accounts without requiring a physical visit.
For most virtual US bank accounts, a passport is the preferred document for identity verification. However, Karbon provides virtual US business bank accounts with basic documents like Aadhar, PAN, and GST certificate (for businesses).
Yes, virtual accounts provide essential banking services like receiving payments, transfers, and more. They’re backed by leading financial institutions and function the same as a local US bank account.
Karbon partners with its international banking partner, JP Morgan Chase, to offer US virtual bank accounts to our Indian customers. Our special relationship with this partner enables us to offer free money transfers to the US bank account. We only charge you for transferring the money from the virtual account to your Indian account, that too is very cost-effective through our international banking partners. We guarantee no more than 1% transfer fees.
Banks like CitiBank or HSBC have international accounts, but they have significantly higher fees, stricter requirements, and no extra benefits.
No, the ITIN or SSN is not required for virtual US bank accounts, but traditional banks in the United States usually require one.
Yes, with a US bank account, you can accept payments in USD, thus eliminating conversion fees and speeding up your payment processing time.
Virtual accounts have no minimum balance, while traditional US banks demand balances of anywhere between $500 and $1,000.
Setting up your virtual account takes less than a day. It is completed within 24 hours after the necessary documents are submitted.
The funds can be kept in the account for as long as necessary, but some providers require different specifications. Karbon allows funds to be stored indefinitely as long as your account is active.
