Opening a bank account in Puerto Rico

Like with so many things you need a social security number. You can only obtain a SS card if you're here legally. Three main options: A visa that allows you to work, a 'green card" or US citizenship, of course.

There are quite some banks. The biggest by far is Banco Popular. They have branch offices all over the place. I have some accounts with them and they've been serving me good for over ten years.

Thanks for your contribution Gary!

Harmonie.

The ONE thing that caught us by surprise is that there's a NINE day hold on checks from US banks. Nothing like having no access to all your money for a week-and-a-half...

So we've maintained our US account along with the PR one and use internet transfers to move cash about.

Another thing is that interest is higher than in the US. Again, it caught us by surprise when we bought a car. On the flip side, you actually get something from your interest-bearing bank accounts.

PR is much more cash-oriented than the US; hence the greater demand for it. Our PR bank's ATMs (ATH here) usually run out of cash during the weekend. You can usually get by with a Visa credit card, but have identification, phone number, and/or driver's license number.

Banking regulations actually do NOT require a Social Security Number. You are required to provide two forms of ID & proof of address in PR. If you are opening an interest bearing account and you do not have a SSN or Tax ID then you will complete a W8-BEN form which the bank will send to the IRS and you will be issued a TIN (tax ID) so that you may report earned interest income with your tax returns. Having a SSN saves you lots of trouble and paperwork and also allows you to establish credit, apply for credit cards, loans, etc.

Banco Popular is the largest consumer bank on the island.

~Martin

mnieves79 wrote:

Banking regulations actually do NOT require a Social Security Number.

Hmm... did you ever open a bank account without a SS number? You might be right but I have been to at least five banks when I first moved here and I could not get a bank account without a SSN...

I'm a personal banker and have opened many accounts for customers without an SSN. Banks in Puerto Rico are part of the U.S. banking system with few differences in tax laws. The problem is that most personal bankers in PR are inexperienced to say the least. I had this same conversation with my stepmother's brother a few years back, he is a branch manager for Banco Popular. He states that the U.S. Patriot Act requires a SSN to open an account. When I corrected him on this fact he contacted his regional manager who told him I was correct but Banco Popular had decided to only allow its branches in San Juan to open accounts with a TIN.

I have opened accounts for customers who reside in Venezuela, Argentina and Brazil. The situation is as follows. To open an account in the U.S. financial system you need to establish that you have a reason to have an account here. Take the example of diplomats living in the United States or a temporary foreign worker.  He or she will not have a SSN but will be able to open an account. They will then have to file a federal tax return to report the earned interest.

In Puerto Rico there is a little twist. That is that residents of Puerto Rico DO NOT need to file a federal tax return. The IRS has a definition of a "Bona fide Puerto Rico resident." The case of the diplomat and temporary foreign worker may not qualify as a bonafide resident of the island. They are not exempt from filing that federal return. This is to avoid people moving their savings from NY (or anywhere else) to PR to avoid reporting the income.

The result if the following. If someone is a permanent resident then they should have an SSN and none of the previous applies. This person will be able to open accounts and apply for credit.

Someone who does not qualify to have an SSN is likely a termporary foreign worker who does not meet the definition of bonafide resident. This person will have to go to the San Juan area to a bank who can open his or her account with a Tax ID (TIN). This person will still be able to open an account. Will need to report the earned income from interest bearing accounts but will not be able to apply for credit.

Sorry if my lengthy e-mail causes any confusion.

Martin

Martin, thanks for the explanation.

I'm sure it will help people without a SSN to open a bank account, if they can convince the local manager that a TIN should be enough (next to the double ID).

Back in 2001 nobody in the banks where I tried to open an account knew this - it wasn't mentioned to me at all..
I have been running around with more a lot more cash than I normally carry for a couple of weeks. Oh, and I lived in the metro area and all banks where I went were there. No way to get an account!

The "funny" thing in my case was that when I applied for my permanent residency I received a work permit the day I filed my application and this work permit obviously was good enough to apply for a SSN, which I received within a couple of weeks. Once I had the Social Security Card all doors that were closed before opened for me.

This is amazing information.  To the personnal banker.  We are looking to come to PR to start a business from South Africa.  Could we please chat somehow ????
Appreciated Janice

Hi JaniceT,
We can answer questions here, what do you need to know?

I'd recommend Banco Popular. It has all services, including mortgages and personal loans. It also has a complete on-line banking option and tons of ATMs. For the most part, I've found the staff professional and knowlegeable. I was up and running with my account in a matter of minutes. I was given a few temporary checks until my permanent ones arrived. All I needed was my driver's license and PR address.

The mimimum balance for a free account is $500, but if there has been no activity on your account in 6 months, you will be charged monthly to keep it open.

As someone already suggested, keeping a mainland account is wise, and you can transfer money back and forth as needed.

I also have an account with PayPal and a PayPal card, which everybody takes, if they take credit cards at all. You can transfer money in and out to your PR bank, just like you can with a mainland bank.

Martin, would opening a bank account in Puerto Rico provide asset protection from creditors in the US?

Puerto Rico is the US, Bob.

Yes....Puerto Ricans are US citizens, and everyone and their dog knows that elementary fact.

Puerto Rico however is not a state, but a territory, so it has different rules in regard to banking.

So I'll ask again, and hopefully someone else who's knowledgable in the manner will answer my question.

If a bank account is opened in Puerto Rico, would the assets in the account be protected from creditors from the United States?

And my question to you is why do you think they would?

And no, the rules aren't that different -- at least from my experience.

No banks in PR are run by same banking rules. The money would not be protected.

tax is different, but just about everything else is the same

Sounds to me like Bob is trying to avoid his debt commitments.

Moving to PR will not help someone to evade debts if they  have assets.