# Why would anybody pay to simply \*have\* a bank account? **URL:** \ **Category:** Factual Questions\ **Created:** [September 14, 2016, 1:19am UTC](https://boards.straightdope.com/t/why-would-anybody-pay-to-simply-have-a-bank-account/765902 "2016-09-14T01:19:03Z")\ **Posts on this page:** 11\ **Page:** 3
**Author:** ![iamthewalrus\_3](https://avatars.discourse-cdn.com/v4/letter/i/258eb7/32.png) [@iamthewalrus\_3](https://boards.straightdope.com/u/iamthewalrus_3)\ **Post date:** [September 23, 2016, 4:18pm UTC](https://boards.straightdope.com/t/why-would-anybody-pay-to-simply-have-a-bank-account/765902/41 "2016-09-23T16:18:07Z")
> [@Exapno\_Mapcase](#): > > They want your next loan as well. I wonder how much having a checking account inclines people to get a loan from the same institution. I’m sure there’s some effect. But mortgages are such a big expense that I can’t imagine not shopping around for a good rate. Also, I’m fairly sure that it’s a bad idea to keep your money in a checking account at the same place you have your mortgage. Because a possible cashflow problem that means you can’t pay your mortgage may be terribly compounded by the bank deciding that they’re just going to take the money out of your account anyway. ---
**Author:** ![Snorri\_Thorfinnsson](https://avatars.discourse-cdn.com/v4/letter/s/77aa72/32.png) [@Snorri\_Thorfinnsson](https://boards.straightdope.com/u/Snorri_Thorfinnsson)\ **Post date:** [September 23, 2016, 4:34pm UTC](https://boards.straightdope.com/t/why-would-anybody-pay-to-simply-have-a-bank-account/765902/42 "2016-09-23T16:34:28Z")
> [@Mister\_Rik](#): > > So I honestly can’t see why people would open an account at a bank that charges them for the privilege. Do they just live some place where they literally have no other options? Maybe they have never heard of credit unions? Seriously we have done all of our stuff at a credit union for over 30 years without any hassles or bizarre fees. (The worst was when we got double charged on a $700 check - once I saw it and brought it to their attention they immediately replaced the money and investigated after replacing it.) ---
**Author:** ![yellowjacketcoder](https://avatars.discourse-cdn.com/v4/letter/y/4bbf92/32.png) [@yellowjacketcoder](https://boards.straightdope.com/u/yellowjacketcoder)\ **Post date:** [September 23, 2016, 5:08pm UTC](https://boards.straightdope.com/t/why-would-anybody-pay-to-simply-have-a-bank-account/765902/43 "2016-09-23T17:08:00Z")
> [@iamthewalrus\_3](#): > > Also, I’m fairly sure that it’s a bad idea to keep your money in a checking account at the same place you have your mortgage. Because a possible cashflow problem that means you can’t pay your mortgage may be terribly compounded by the bank deciding that they’re just going to take the money out of your account anyway. I would be very surprised if the bank could just decide to raid your account, barring contractual language in your mortgage where you specifically allow them to do so. ---
**Author:** ![Snorri\_Thorfinnsson](https://avatars.discourse-cdn.com/v4/letter/s/77aa72/32.png) [@Snorri\_Thorfinnsson](https://boards.straightdope.com/u/Snorri_Thorfinnsson)\ **Post date:** [September 23, 2016, 5:26pm UTC](https://boards.straightdope.com/t/why-would-anybody-pay-to-simply-have-a-bank-account/765902/44 "2016-09-23T17:26:56Z")
Banks can do just that. (Unless there are states where it is specifically not allowed - not sure if there are any.) > **[Cross-collateralization](https://en.wikipedia.org/wiki/Cross-collateralization)** > > Cross-collateralization is a term used when the collateral for one loan is also used as collateral for another loan. If a person has borrowed from the same bank a home loan secured by the house, a car loan secured by the car, and so on, these assets can be used as cross-collaterals for all the loans. If the person pays off the car loan and wants to sell the car, the bank may veto the deal because the car is still used to secure the home loan and other loans. Technically, cross-collateralizati An... ---
**Author:** ![yellowjacketcoder](https://avatars.discourse-cdn.com/v4/letter/y/4bbf92/32.png) [@yellowjacketcoder](https://boards.straightdope.com/u/yellowjacketcoder)\ **Post date:** [September 23, 2016, 5:58pm UTC](https://boards.straightdope.com/t/why-would-anybody-pay-to-simply-have-a-bank-account/765902/45 "2016-09-23T17:58:19Z")
> [@Snorri\_Thorfinnsson](#): > > Banks can do just that. (Unless there are states where it is specifically not allowed - not sure if there are any.) > > [Cross-collateralization - Wikipedia](https://en.wikipedia.org/wiki/Cross-collateralization) I think you missed my clause about “unless you signed a contract that said you could”. ---
**Author:** ![Muffin](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/muffin/32/4341_2.png) [@Muffin](https://boards.straightdope.com/u/Muffin)\ **Post date:** [September 23, 2016, 6:44pm UTC](https://boards.straightdope.com/t/why-would-anybody-pay-to-simply-have-a-bank-account/765902/46 "2016-09-23T18:44:33Z")
I read this thread yesterday and recalled that I had a couple of accounts that I don’t use but pay monthly fees on, so I closed them. Thanks for saving me some money, Mister Rik. ---
**Author:** ![Exapno\_Mapcase](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/exapno_mapcase/32/1051_2.png) [@Exapno\_Mapcase](https://boards.straightdope.com/u/Exapno_Mapcase)\ **Post date:** [September 23, 2016, 7:32pm UTC](https://boards.straightdope.com/t/why-would-anybody-pay-to-simply-have-a-bank-account/765902/47 "2016-09-23T19:32:47Z")
> [@iamthewalrus\_3](#): > > I wonder how much having a checking account inclines people to get a loan from the same institution. I’m sure there’s some effect. But mortgages are such a big expense that I can’t imagine not shopping around for a good rate. You may do so. But I bet that having all your loans and accounts consolidated at one bank is enough of an incentive for enough people to make it worth while for banks to encourage it. ---
**Author:** ![Rick\_Kitchen](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/rick_kitchen/32/522_2.png) [@Rick\_Kitchen](https://boards.straightdope.com/u/Rick_Kitchen)\ **Post date:** [September 23, 2016, 7:56pm UTC](https://boards.straightdope.com/t/why-would-anybody-pay-to-simply-have-a-bank-account/765902/48 "2016-09-23T19:56:40Z")
> [@iamthewalrus\_3](#): > > I wonder how much having a checking account inclines people to get a loan from the same institution. I’m sure there’s some effect. But mortgages are such a big expense that I can’t imagine not shopping around for a good rate. > > Also, I’m fairly sure that it’s a bad idea to keep your money in a checking account at the same place you have your mortgage. Because a possible cashflow problem that means you can’t pay your mortgage may be terribly compounded by the bank deciding that they’re just going to take the money out of your account anyway. I have both my checking and savings at Bank of America because if I transfer at least $25 from checking to savings each month, I get both for free. ---
**Author:** ![Snorri\_Thorfinnsson](https://avatars.discourse-cdn.com/v4/letter/s/77aa72/32.png) [@Snorri\_Thorfinnsson](https://boards.straightdope.com/u/Snorri_Thorfinnsson)\ **Post date:** [September 23, 2016, 8:01pm UTC](https://boards.straightdope.com/t/why-would-anybody-pay-to-simply-have-a-bank-account/765902/49 "2016-09-23T20:01:19Z")
> [@yellowjacketcoder](#): > > I think you missed my clause about “unless you signed a contract that said you could”. Banks can still do it without any signed agreement - they just go to their friendly local judge and get a court order to do so. Just cross collateralization (which is technically limited to credit unions) under a different name with a slightly different process - still the same result. In a similar manner, savings accounts can also be raided to cover checking account shortages: [http://www.wisebread.com/banks-manipulate-your-transactions-may-charge-you-1750-overdraft-fee](http://www.wisebread.com/banks-manipulate-your-transactions-may-charge-you-1750-overdraft-fee) ---
**Author:** ![yellowjacketcoder](https://avatars.discourse-cdn.com/v4/letter/y/4bbf92/32.png) [@yellowjacketcoder](https://boards.straightdope.com/u/yellowjacketcoder)\ **Post date:** [September 23, 2016, 8:35pm UTC](https://boards.straightdope.com/t/why-would-anybody-pay-to-simply-have-a-bank-account/765902/50 "2016-09-23T20:35:21Z")
> [@Snorri\_Thorfinnsson](#): > > Banks can still do it without any signed agreement - they just go to their friendly local judge and get a court order to do so. Just cross collateralization (which is technically limited to credit unions) under a different name with a slightly different process - still the same result. > > In a similar manner, savings accounts can also be raided to cover checking account shortages: > > [http://www.wisebread.com/banks-manipulate-your-transactions-may-charge-you-1750-overdraft-fee](http://www.wisebread.com/banks-manipulate-your-transactions-may-charge-you-1750-overdraft-fee) Having to get a court order to garnish an account is quite different from “just deciding” to do so. EDIT: and the same clause applies to the savings/checking thing - yea, IF you signed paperwork that allows them to do so. I know, because I paid attention to all that paperwork when I was setting up my checking account. ---
**Author:** ![iamthewalrus\_3](https://avatars.discourse-cdn.com/v4/letter/i/258eb7/32.png) [@iamthewalrus\_3](https://boards.straightdope.com/u/iamthewalrus_3)\ **Post date:** [September 23, 2016, 10:55pm UTC](https://boards.straightdope.com/t/why-would-anybody-pay-to-simply-have-a-bank-account/765902/51 "2016-09-23T22:55:35Z")
> [@yellowjacketcoder](#): > > I think you missed my clause about “unless you signed a contract that said you could”. I read all the documents that I signed, but there were 50+ pages, and I’m not a lawyer. How sure should I be that I didn’t agree to such a thing? [Previous page](https://boards.straightdope.com/t/why-would-anybody-pay-to-simply-have-a-bank-account/765902.md?page=2)