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Bank needs Credit Check to open a savings account??
Old 01-08-2015, 01:33 PM   #1
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Bank needs Credit Check to open a savings account??

I am attempting to open savings account with an internet bank that I already have a CD with.

They require me to thaw my frozen credit bureau account to do a credit check on me. The reason is that the savings account is 'more liquid' and I can withdraw the money more easily.

HUH?!?

I put the money in, and withdraw it. What does that have to do with extending credit? I am not asking for coverage of checks written with insufficient funds or something that might cause them to lose money on me.

What am I missing? Or am I?
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Old 01-08-2015, 03:08 PM   #2
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Probably nothing. Some bank risk officer probably decided this would look good to some regulators. I am curious how the bank answered your questions?
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Old 01-08-2015, 03:11 PM   #3
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Things are never as simple as they seem they should be.

For one, the banks have to comply with some "know your customer" rules that were implemented after 9/11. This is not discretionary on their part.

And there are a number of fraud schemes that can be used with just a savings account and the bank wants some assurance that you are not one of "those guys".

Nothing personal, just business.
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Old 01-08-2015, 03:24 PM   #4
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Wells Fargo per chance?
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Old 01-08-2015, 03:24 PM   #5
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I had the happen once. Instead I opened the account at the bank across the street where there was no such problem.
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Old 01-08-2015, 03:30 PM   #6
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Pen Fed did a credit check on me before opening CD's last year. This was a new account with Pen Fed. I didn't go across the street because there didn't seem to be any other 3% CD offerings out there.
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Old 01-08-2015, 03:48 PM   #7
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Wells Fargo per chance?
The thread tag says Ally Bank
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Old 01-08-2015, 04:13 PM   #8
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The thread tag says Ally Bank
Hmmm. Had this issue with Wells Fargo a couple of weeks ago. I have an Ally savings account. Don't recall having any issue with Ally Bank. Maybe its a checking account thing?
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Old 01-08-2015, 04:36 PM   #9
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Nothing personal, just business.

My uncle Guido used to say that just after a 'customer' missed an insurance payment.
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Old 01-08-2015, 07:31 PM   #10
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Every time I cash a check at my bank, even for just a couple hundred bucks, the poor clerk has to type away at her terminal for about 2 minutes (120 seconds) before she can cash it. Wonder what the big deals is.
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Old 01-08-2015, 07:44 PM   #11
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Wonder what the big deals is.
My guess it's "cashing a check at a bank." I don't think I've done that in the past 20 years.
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Old 01-08-2015, 11:17 PM   #12
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Pen Fed did a credit check on me before opening CD's last year. This was a new account with Pen Fed. I didn't go across the street because there didn't seem to be any other 3% CD offerings out there.

Same happened with me with Penfed. I only had to unfreeze the credit company they used not all three of them.


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Old 01-10-2015, 12:44 PM   #13
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What am I missing? Or am I?
I get your confusion. Seems like an unnecessary expense for the bank. That said, it's their biz and they get to run it any way that they like. Anyone know how much such an action costs a bank?
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Old 01-16-2015, 10:55 AM   #14
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Originally Posted by John Galt III View Post
Every time I cash a check at my bank, even for just a couple hundred bucks, the poor clerk has to type away at her terminal for about 2 minutes (120 seconds) before she can cash it. Wonder what the big deals is.
Well just a guess, but those little micr numbers at the bottom of the check probably are entered. Edit to add they probably are also manually checking a known offender database.

If you've ever been in a "lock box" secured area where they handle many thousands of checks every day, its amazing. Mail comes in on a conveyer, envelope split open, check and stub get separated, by a little puff of air. Checks scanned (micr read and amounts)all in 100th of a second, or less. I never knew paper could move so fast.

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