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🏦 Module 02

Banking

Understand the US banking system, choose the right accounts, and protect your money from scams.

💳 You need both a checking account (spending) AND a savings account (growing)
🔐 Credit cards beat debit cards for fraud protection and building credit history
🌐 You can open a US bank account without a Social Security Number using an ITIN
Section 1 of 4

Types of Bank Accounts

The US banking system has several account types, each designed for a different purpose. Understanding these is step one to making your money work for you.

The rule: You need BOTH a checking account (for paying) AND a savings account (for saving). Never keep your savings in checking — you'll spend it.

When choosing a bank, compare: monthly fees, minimum balance requirements, ATM network, and mobile app quality. Credit unions often have lower fees than big banks.

Section 2 of 4

Debit vs. Credit Cards

Both let you pay without cash, but they work very differently — and choosing wrong can cost you money or your credit score.

Feature
Credit Card ✓
Debit Card
Whose money?
Bank's (you pay later)
Yours (instant spend)
Fraud protection
Strong — $0 liability
Weak — $500 if late
Builds credit score?
Yes — critical in US
No
Rewards / cashback?
Yes — 1–5%
Rarely
Overdraft risk?
No
Yes — $35/transaction
Debt risk?
Yes — if you don't pay monthly
No
The golden rule: Use a credit card like a debit card — pay the FULL balance every single month. You get all the benefits (fraud protection, rewards, credit score) with zero cost. The moment you carry a balance, you pay 20–30% interest and the math destroys you.

If you're new to credit, start with a secured credit card — you deposit $200–$500 as collateral, and that becomes your credit limit. After 6–12 months of responsible use, you'll have a real credit score and qualify for better cards.

Section 3 of 4

Digital Payment Apps

Cash App, Venmo, Zelle — these apps make splitting bills and sending money to friends fast and easy. But they're not all the same, and the differences matter.

Venmo
Social P2P
Friend payments with a social feed. Set to private\! Public by default — everyone can see your transactions. Owned by PayPal.
Cash App
P2P Debit Card
Simple peer-to-peer transfers. Includes a free debit card. Can also buy stocks and Bitcoin — but be careful with crypto.
Zelle
Bank-Direct Instant
Bank-to-bank transfer built into most bank apps. Instant and free. No fraud reversal — once sent, it's gone. Only send to people you know.
PayPal
Shopping Buyer Protection
Best for online shopping — strong buyer protection if an item doesn't arrive. Also good for freelance payments.
⚠️
Scam Alert: Zelle & Venmo Fraud
Very common — know the red flags before you lose money
Scam 1 Overpayment scam: Someone "accidentally" sends you more than owed, asks you to Zelle the excess back. Their original payment bounces — you're out the refund.
Scam 2 Scam 2 Fake buyer scam: Sells something online, "pays" via a fake Zelle email, asks you to ship first. The payment was never real.
Scam 3 Impersonation: Someone pretending to be your bank or a friend in trouble asks for emergency Zelle transfer. Your bank will NEVER ask for this.
Rule: Only send money to people you know in real life. Zelle transfers are instant and irreversible — the same features that make it convenient make it dangerous for scams.
Section 4 of 4

Banking Without a Social Security Number

Many new immigrants and DACA recipients worry they can't open a US bank account without a Social Security Number (SSN). This is a myth. You have more options than you think.

🌍
Banking Access for Immigrants
You don't need an SSN — here's what works
ITIN Individual Taxpayer ID Number — issued by the IRS to people who need to file taxes but don't have an SSN. Many banks accept this instead of an SSN to open an account.
Big Banks Bank of America SafeBalance, Wells Fargo, Chase — all accept foreign passports + ITIN. Ask specifically for the SafeBalance or similar "access banking" accounts to avoid fees.
Credit Unions Often more immigrant-friendly than big banks. Many community credit unions actively serve immigrant populations and have bilingual staff.
Online Banks Chime, Current, Varo — online banks with no credit check and often accept ITIN. No monthly fees, no minimum balance, overdraft protection built in.

When comparing accounts, always ask about these fees:

Monthly maintenance fee Up to $15/month if below minimum balance
Overdraft fee $35 per transaction at traditional banks
Out-of-network ATM fee $2.50–$5 per withdrawal
Minimum balance to avoid fees $0–$1,500 depending on bank
Chime / Current / Varo monthly fee $0 — no monthly fee

Building a banking relationship early matters. A checking account history makes it easier to get an apartment, and a savings account builds the foundation for your emergency fund and eventually, a credit history.

Interactive

Bank Account Chooser

Pick a scenario to see which account or tool fits best — and why. Then use the fee calculator to see what you'd actually pay each month.

Select a scenario above to see which banking tool fits best.

Monthly Fee Calculator

Enter your average monthly balance to see what you'd pay at different banks.

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Knowledge Check

5 questions · Pass with 4/5 (80%) to earn your XP

Question 1 of 5
You want to earn interest on money you're saving for a future expense. Which account is best?
Question 2 of 5
A stranger on Instagram says they'll send you $500 via Zelle and just needs your account info. This is:
Question 3 of 5
What is the main advantage of using a credit card over a debit card?
Question 4 of 5
Can you open a US bank account without a Social Security Number?
Question 5 of 5
What happens if you spend more than your checking account balance?
🎉

You passed\!

4/5

Solid understanding of the US banking system.

You earned 150 XP for completing this module. Two down — keep going\!

Next: Credit Scores →