A Guide to U.S.
Life and Finances:
Arrive and Thrive
We support you throughout your move, including giving you the credit flexibility you need to start building your financial life.
Navigate your new home
Take Your First Steps in the U.S.
To set yourself up for success, you'll need the following assets. Bank of the West is here to help.
getting started
Financial Foundation
TAXES
CAR AND HOME
HEALTHCARE PLAN
FINANCIAL FUTURE
childcare & schools
We can help set you up with a bank account and debit card before you get your social security card.
Just make sure to bring:
A valid passport
A secondary form of ID
DRIVER'S LICENSE
SOCIAL SECURITY CARD
CONSULATE REGISTRATION
Build a Financial Foundation
Many new US residents don’t arrive with an established credit history—or a credit score—recognized by US lenders, which can pose challenges.
UNDERSTAND YOUR TAXES
US residents must report their worldwide income. We can help you understand this complex process.
U.S. income tax
foreign accounts
u.s. estate tax
FIND A CAR AND HOME
It can be difficult to secure a car loan or home mortgage with no US credit history. Bank of the West has solutions designed to get you where you want to go.
CAR: BUY OR LEASE?
HOME: BUY OR LEASE?
CHOOSE YOUR
HEALTHCARE PLAN
In the US, you have access to different healthcare networks and plans. The plan and network you choose will have a predetermined set of out-of-pocket costs and may also allow you to see specific doctors.
premium
co-pay
deductible
out-of-pocket limit
coinsurance
These are different types of payments you might make:
compare BENEFITS
PLANNING YOUR FINANCIAL FUTURE
Start saving for retirement and financial challenges
EMERGENCY fund
401k
Traditional
contribution
iras
BANK ACCOUNT
Once you have a Social Security number, you can obtain a driver’s license at your local Department of Motor Vehicles (DMV).
calculating your total costs
It’s a good idea to register at the local consulate of your home country. This will enable you to vote in your home country and get important information. Your consulate may also be able to connect you with local resources that will make your transition easier.
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Approximately a week after you arrive, you’ll want to apply for a Social Security number at your local Social Security office. This nine-digit number is unique to you, and it is used to track your income for taxes and to build and monitor your credit history.
Additional Services:
Online access to your account
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Direct deposit from your employer
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START
STEP
Bank Account
Driver’s License
Social Security Card
Consulate Registration
Electronic bill pay
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Look online to find the documentation you’ll need.
While DMVs are managed by each state, your license will be valid throughout the US. Your driver’s license isn’t just your permit to operate a motor vehicle, it’s also (besides your passport) your most important form of identification in the US and necessary for opening various accounts.
We can discuss the best options to meet your needs.
Your Social Security number is needed to:
Receive your salary
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Make larger purchases
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Open various types of financial accounts
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Sign up for utilities like gas and electricity
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Look online at www.ssa.gov to see what documentation you’ll need when you apply.
Bank Account
Driver’s License
Social Security Card
Consulate Registration
A new resident’s guide to living and working in the U.S.
STEP
getting started
Financial Foundation
TAXES
CAR AND HOME
HEALTHCARE PLAN
FINANCIAL FUTURE
childcare & schools
CREDIT score
CREDIT REPORT
BUILDING CREDIT
Credit Score
credit reports
building credit
US credit scores are used by
lenders
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employers
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Credit Score
There are three main US credit reporting agencies that compile reports based on things like:
Your score, which can range from 300 to 850, may vary slightly between agencies.
Credit Reports
The easiest way to build your credit score in the US is to start by applying for and using a credit card. At Bank of the West, we’re dedicated to helping get your credit history started by making it easier for newcomers to receive a credit card—even if you don’t have a US credit history.
Quicks Tips to Build Credit:
Obtain a US Social Security Number
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Work with a newcomer-friendly bank like Bank of the West
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Open a checking account and savings account
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Obtain a credit card
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building credit
Service providers
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landlords
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Credit card use
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Payment history
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Length of time you’ve been using credit
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Bank of the West, unlike many other banks, doesn’t require a US credit score to apply for home financing or auto loans, but you’ll need one to apply for most loans in the US.
It’s vital that you start thinking about building good credit history soon after you arrive.
Obtain a car loan
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Take out a credit-builder loan
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getting started
Financial Foundation
TAXES
CAR AND HOME
HEALTHCARE PLAN
FINANCIAL FUTURE
childcare & schools
STEP
U.S. Income Tax
Foreign Accounts
U.S. Estate Tax
Foreign Accounts
When determining resident status for the US inheritance tax, the Internal Revenue Service (IRS) considers “the domicile” as the individual’s permanent home.
If there is a definite intention of returning to a foreign domicile, then the individual may not be considered a resident for purposes of the US estate and gift tax and may not be eligible to get the US exemption and unlimited marital deduction.
US tax treaties with other countries can also impact residency and domicile.
Income tax, financial reporting, and estate taxes can be complex when you are living in the US Please consult with your tax advisor to consider your unique tax situation
U.S. Estate Tax
In the United States, the general rule is that residents must pay income taxes on their worldwide income. An individual may be considered a resident for tax purposes when:
If you are a non-US citizen under visa, you can use the US Customs website to view your trips and calculate days spent in the United States.
The individual is a green card holder. A green card holder, however, may not be subject to the US income tax if he or she can prove that they have a closer connection to another country.
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The individual has spent a defined amount of time in the US, as determined by the Substantial Presence Test. Certain people are legally exempted from the Substantial Presence Test, depending on their visa type.
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Calculate daYs spent in the us
U.S. Income Tax
When reporting your foreight accounts there are two important forms you should know:
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FBAR (due April 15 following the calendar year reported)
Any person or entity in the United States who has a financial interest in or signature or other authority over one or more financial accounts located outside the United States must file an FBAR, if the aggregate value of those foreign accounts exceeds $10,000 at any
time during the calendar year reported.
Form 8938 (FATCA)
This must be filed by anyone in the US holding specified foreign financial assets with an aggregate value that exceeds certain reporting thresholds ($50,000 or more, depending on your filing status).
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The FBAR is an annual report, due April 15 following the calendar year reported.
FBAR
getting started
Financial Foundation
TAXES
CAR AND HOME
HEALTHCARE PLAN
FINANCIAL FUTURE
childcare & schools
getting started
Financial Foundation
TAXES
CAR AND HOME
HEALTHCARE PLAN
FINANCIAL FUTURE
childcare & schools
STEP
compare BENEFITS
calculating your total costs For Healthcare
RESEARCH CHILDCARE AND SCHOOLS
You’ll have access to several types of childcare in the US, so you can choose the best option for your family.
getting started
Financial Foundation
TAXES
CAR AND HOME
HEALTHCARE PLAN
FINANCIAL FUTURE
childcare & schools
CHILDCARE
SCHOOLS
Whether you’ve recently arrived or are planning a move to the US, Bank of the West can help add clarity and confidence to your banking, wealth, and overall financial affairs.
We are able to serve you locally with global capabilities. With a global perspective, we make connections between the global landscape and local markets.
We’d love to help you make the most of your new opportunity. Our multilingual team is committed to supporting you on all your international needs.
contact us
NAVIGATE WITH
CONFIDENCE
To determine which plan is right for you or your family, review the summary of benefits to see what services the plan covers and what associated costs are.
Ask these questions, and consider your own health situation and needs when making your choice:
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Do these plans offer optional eye care or dental coverage?
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What out-of-pocket costs am I responsible for?
How are plans structured? Can I add partners/spouses or dependents?
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How do I get started signing up, and what documents will I need?
What happens if I get sick when traveling abroad?
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What maternity/paternity services are covered?
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I take a certain medication. How is that covered under this plan?
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compare BENEFITS
calculating your total costs For Healthcare
premium
The fee paid to your insurance company each month. You pay this fee even if you don’t use medical services that month.
co-pay
Many types of care will require that you also pay a co-payment at the time of service.
deductible
Each year, you’ll pay a set amount of money toward care before your insurance starts covering on your behalf.
out-of-pocket limit
This is the maximum amount of additional money (in addition to your monthly premium) you might need to pay in any given year.
coinsurance
After you have paid your deductible, most plans will only cover up to a certain percentage of the procedure cost. The remainder is called “coinsurance.”
getting started
Financial Foundation
TAXES
CAR AND HOME
HEALTHCARE PLAN
FINANCIAL FUTURE
childcare & schools
Emergency Fund
U.S. Retirement Accounts
emergency fund
Face medical expenses that are not covered by insurance
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Suddenly find yourself unemployed
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Wherever you live in the world, it’s important to keep what some call an “emergency fund.”
An emergency fund is essential in case you:
U.S. Retirement Accounts
IRA
You can complement a retirement plan by investing through an individual retirement account (typically called an IRA). This type of account is typically opened directly with a bank or brokerage firm.
Traditional contributions
Traditional contributions are tax-deferred, meaning you are not taxed on the money you contribute now, but you will pay income taxes when you take the distributions in retirement.
401(k)
In the US, Social Security retirement benefits are often not sufficient to maintain one’s standard of living in retirement. So, depending on where you’re employed, you may have the opportunity to contribute to a company retirement plan.
STEP
U.S. Retirement Accounts ¹
An emergency fund is money you keep fully liquid in a savings or money market savings account so you can quickly handle emergencies without having to sell securities or convert foreign currencies. There’s no magic number, but many experts recommend keeping enough cash to cover six months of expenses.
Talk to Relationship Manager at Bank of the West about the different savings and money market savings account options.
Roth contributions
Roth contributions, on the other hand, are taxed now, but earnings and distributions will be tax-free later.
Roth
contributions
In simple terms, a 401(k) plan is an account that you contribute to through payroll deduction up to a maximum annual contribution limit set by the IRS. The money you contribute can be invested in various ways depending on the choices offered by your plan provider.
Your employer may also contribute to your plan on your behalf.
Home: Rent or Buy?
While some states offer renters’ tax credits, most do not
Fixed monthly payment; no maintenance costs; no build-up of equity
Limited up-front investment, limited lease period for shorter-term residents
Down payment of up to 20% of purchase price, which is applied to your home equity
Potential US mortgage interest deduction on federal taxes?
Upfront costs and ongoing maintenance, but the potential for property appreciation
Potential longer-term appreciation value, the stability of ownership
Depending on your situation, there are arguments both for buying and renting. Consider the following as you make the buy-or-rent decision:
No down payment, but may require a 1–3 month security deposit
Considerations
Costs
Tax considerations
Down payment
renting
buying
Length of Stay
Car: Lease or Buy?
Payments
Repairs
Mileage/use
Considerations
Buying
Leasing
No mileage limit use or restrictions, how you maintain it is up to you
Can drive a new car more often, but rules apply on mileage use and wear
After warranty, you’re responsible for all repairs
Fewer repair expenses
Pay less over the
long term, build equity
Lower monthly payments, fixed fee
How you pay for a car depends on how you’ll use it and for how long.
Home: Rent or Buy?
Car: Lease or Buy?
STEP
STEP
Childcare
What to Expect
Childcare
US daycare centers have well-trained employees who provide childcare to small groups. Some facilities are licensed; others are not. Parents should research the qualifications and background of any facility they choose to provide preschool education.
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These offer an alternative to daycare centers. Parents often choose them because they prefer to keep their children in a home environment under the supervision of only one caregiver.
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US childcare is not financed or provided for by the state you live in. Choose the best options for your family, and learn what to expect:
In the US, children usually begin formal education at age five or six, in kindergarten or grade one. Some other things to know when it comes schooling:
Schools
Daycare centers
Family and in-home care providers
Public schools in the US are funded largely through taxes and are primarily free to families. If you choose to send your children to a public school, it’s good to learn about the local school district as you search for a home. A local real estate agent can often provide great insight about school districts.
Public schools
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Most states have a selection of private, fee-paying schools. Costs for private school education vary depending on the curriculum, reputation, and location. The average tuition cost for a private school is around $10,000 (USD) per year, but some schools charge $25,000 or more a year.
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Private schools
In the US, individual states set their own educational standards and play a big part in structuring and funding public schools. You may prefer a private school over the public state system. Just know that tuition fees can be significant.
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Some students continue on to graduate programs in pursuit of a master’s degree or a doctorate, typically called a Ph.D.
Students can typically earn a bachelor’s degree in four years.
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After graduating from high school (12th grade), US students may attend a college or university.
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Grades 9-12 are high school years.
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Children advance one grade each year (grade one, two, three, etc.) until reaching grade 12 at the age of 17.
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Schools
What to Expect
what to expect
your final
checklist
Banking and finance
Governmental
Health and education
Governmental
Banking and Finance
Health and Education
Schedule a meeting at your local Social Security office to obtain a Social Security number and card.
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Register at your home country’s consulate in the US to be able to vote and receive important communications.
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Meet with a tax expert to find out if the Exit Tax applies to you and to determine your tax liability after you move.
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If you plan to drive a car in the US, visit your local Department of Motor Vehicles to begin the process of obtaining a US driver’s license.
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Governmental Checklist:
Banking and Finance Checklist:
Open a US bank account. You’ll want to be able to transfer money between countries.
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Build up your credit score by getting a credit card or car/home loan.
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Meet with an estate attorney to plan for your personal situation. This may include a power of attorney for financial and medical decisions and a guardianship plan for your minor children.
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Organize a meeting with a financial advisor/wealth planner to protect and optimize your financial life while you are in the US.
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Health and Education Checklist:
Open a 401k or IRA to begin savings for retirement.
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Explore US health insurance for you and your family.
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Register kids at school if they are age five or older.
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Governmental
Banking and Finance
Health and Education
getting started
Financial Foundation
TAXES
CAR AND HOME
HEALTHCARE PLAN
FINANCIAL FUTURE
childcare & schools
your final checklist
your final checklist
your final checklist
your final checklist
your final checklist
your final checklist
your final checklist
your final checklist
IMPORTANT disclosure
Investment and Insurance Products:
© 2022 Bank of the West. NMLS #19116. Member FDIC. Equal Housing Lender. Doing business in South Dakota as Bank of the West California.
NOT FDIC INSURED NOT BANK GUARANTEED I MAY LOSE VALUE I NOT A DEPOSIT I NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
¹ The discussions and information set forth herein are for informational purposes only. They do not take into account the exceptions and other considerations that may be relevant to particular situations. These discussions and information should not be construed or used as legal or tax advice, which has to be addressed to particular facts and circumstances involved in any given situation. The discussions and information contained in this article should not be construed or used as a specific recommendation for the investment of assets of any customer of Bank of the West or its affiliates and is not intended as an offer, or a solicitation of an offer, to purchase or sell any security or financial instrument, nor does the information constitute advice or an expression of the Bank’s view as to whether a particular security or financial instrument is appropriate for you and meets your financial objectives. Economic and market forecasts reflect subjective judgments and assumptions, and unexpected events may occur. Therefore, there can be no assurance that developments will transpire as forecasted. Nothing herein should be interpreted to state or imply that past results are an indication of future performance. This information is given without regard to the specific investment objectives, financial situations, or particular needs of any person who may review this article. Investors should seek financial advice regarding the appropriateness of any securities or strategies mentioned here. Bank of the West does not guaranty the results obtained from use of any information contained in this article and will not be liable for any investment decision based in whole or in part on the information contained herein. Bank of the West nor its affiliated entities shall be held liable for any content, regardless of cause, or the lack of timeliness of, any information contained in this article. THERE ARE NO WARRANTIES, EXPRESSED OR IMPLIED, AS TO THE ACCURACY, COMPLETENESS, OR RESULTS OBTAINED FROM ANY INFORMATION IN THIS ARTICLE OR FROM ANY “LINKED” WEB-SITE.
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Use this checklist to guide your
transition to life in the U.S.
IMPORTANT disclosure
getting started
Financial Foundation
TAXES
CAR AND HOME
HEALTHCARE PLAN
FINANCIAL FUTURE
childcare & schools
your final checklist
Navigation
Navigation
Organize a meeting with a financial advisor/wealth planner to protect and optimize your financial life while you are in the US
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Meet with a tax expert to find out if the Exit Tax applies to you and to determine your tax liability after you move
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Member FDIC. Equal Housing Lender.
©2022 Bank of the West is a trade name used by BMO Harris Bank N.A. Banking products and services are subject to approval and are provided by BMO Harris Bank N.A.
Securities and variable annuities are offered through BancWest Investment Services, a registered broker/dealer, Member FINRA/SIPC, and SEC Registered Investment Adviser. Financial Advisors are Registered Representatives of BancWest Investment Services. Fixed annuities/insurance products are offered through BancWest Insurance Agency in California, (License #0C52321) and through BancWest Investment Services, Inc. in all other states where it is licensed to do business. This is not an offer or solicitation in any jurisdiction where we are not authorized to do business. BancWest Insurance Agency is a trade name of BancWest Investment Services, Inc., a subsidiary of BMO Harris Bank N.A.
Investing involves risk, including the possible loss of principal and fluctuation in value.
Diversification and asset allocation does not ensure a profit or guarantee against loss.
BMO Harris Bank N.A. and its various affiliates and subsidiaries are not tax or legal advisors.
IMPORTANT disclosure
Member FDIC. Equal Housing Lender.
NOT FDIC INSURED NOT BANK GUARANTEED I MAY LOSE VALUE I NOT A DEPOSIT I NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
Investment and Insurance Products:
Securities and variable annuities are offered through BancWest Investment Services, a registered broker/dealer, Member FINRA/SIPC, and SEC Registered Investment Adviser. Financial Advisors are Registered Representatives of BancWest Investment Services. Fixed annuities/insurance products are offered through BancWest Insurance Agency in California, (License #0C52321) and through BancWest Investment Services, Inc. in all other states where it is licensed to do business. This is not an offer or solicitation in any jurisdiction where we are not authorized to do business. BancWest Insurance Agency is a trade name of BancWest Investment Services, Inc., a subsidiary of BMO Harris Bank N.A.
Investing involves risk, including the possible loss of principal and fluctuation in value.
Diversification and asset allocation does not ensure a profit or guarantee against loss.
BMO Harris Bank N.A. and its various affiliates and subsidiaries are not tax or legal advisors.
¹ The discussions and information set forth herein are for informational purposes only. They do not take into account the exceptions and other considerations that may be relevant to particular situations. These discussions and information should not be construed or used as legal or tax advice, which has to be addressed to particular facts and circumstances involved in any given situation. The discussions and information contained in this article should not be construed or used as a specific recommendation for the investment of assets of any customer of Bank of the West or its affiliates and is not intended as an offer, or a solicitation of an offer, to purchase or sell any security or financial instrument, nor does the information constitute advice or an expression of the Bank’s view as to whether a particular security or financial instrument is appropriate for you and meets your financial objectives. Economic and market forecasts reflect subjective judgments and assumptions, and unexpected events may occur. Therefore, there can be no assurance that developments will transpire as forecasted. Nothing herein should be interpreted to state or imply that past results are an indication of future performance. This information is given without regard to the specific investment objectives, financial situations, or particular needs of any person who may review this article. Investors should seek financial advice regarding the appropriateness of any securities or strategies mentioned here. Bank of the West does not guaranty the results obtained from use of any information contained in this article and will not be liable for any investment decision based in whole or in part on the information contained herein. Bank of the West nor its affiliated entities shall be held liable for any content, regardless of cause, or the lack of timeliness of, any information contained in this article. THERE ARE NO WARRANTIES, EXPRESSED OR IMPLIED, AS TO THE ACCURACY, COMPLETENESS, OR RESULTS OBTAINED FROM ANY INFORMATION IN THIS ARTICLE OR FROM ANY “LINKED” WEB-SITE.
© 2022 BMO Harris Bank N.A. Bank of the West is a trade name used by BMO Harris Bank N.A. Banking products and services are subject to approval and are provided by BMO Harris Bank N.A.