Why would anybody pay to simply *have* a bank account?

Factual Questions
41

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.

42

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.)

43

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.

44

Banks can do just that. (Unless there are states where it is specifically not allowed - not sure if there are any.)

45

I think you missed my clause about “unless you signed a contract that said you could”.

46

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.

47

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.

48

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.

49

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:

50

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.

51

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?