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Daughter #2 had a Chase account a little while ago but closed it to keep her banking simpler. She's off to Australia next week and thought about opening another account - nope you can't.
Close your account and Chase won't let you come back!
Kinda suprising 😮
I find that very unsurprising, there’s many reasons a bank wouldn’t want a flaky customer.
I work in banking and I'm also unsurprised - if it's within 6 months, a lot of banks won't let you fully close and reopen an account as it looks like fraud/money laundering to the systems even if it's entirely genuine.
I find that very unsurprising, there’s many reasons a bank wouldn’t want a flaky customer.
Flaky in what way? They didn't close the account she did - never overdrawn, just didn't need multiple accounts.
Seems like a great way to lose potential a future customer who has another 60 years banking left to do.
Anyway, maybe they should let you know about this little feature before you close an account 🤔
and reopen an account as it looks like fraud/money laundering
Fair enough... but she was just going to open a new account, not reopen the old one.
I had the same when moving an ISA from chip to T212..
They still keep sending me marketing emails though.
Found it quite strange... Seems it's just what some do rather than being related to fraud or what ever.
My theory is a lot of savings accounts have loss leading introductory rates and they are denying returning customers to try and blackmail them into staying put on lower variable rates.
I think the point they are missing is there are many many providers of similar products, and it only takes 30mins to check on MSE, and lift and shift your savings to a new provider.
A lot of people are now wise to this and will do just that in an environment of slowly falling variable rates, why wouldn't they move the money for an extra 0.4% or whatever.
I think traditionally people would hold a savings account for years or decades, but a bit like car insurance... You'd be daft to stay with the same company for years when switching is such a doddle can can reap good gains, relatively speaking.
There's plenty more providers to choose from.
My theory is a lot of savings accounts have loss leading introductory rates and they are denying returning customers to try and blackmail them into staying put on lower variable rates.
Interesting theory. Other flavours of tinfoil are available.
It's money laundering protocol. It's in the small print. I assume she read up before closing.
My theory is a lot of savings accounts have loss leading introductory rates and they are denying returning customers to try and blackmail them into staying put on lower variable rates.
Interesting theory. Other flavours of tinfoil are available.
It's money laundering protocol. It's in the small print. I assume she read up before closing.
Nothing tin foil hat about it... I held money with a chip cash ISA since March last year, lifted and shifted it to T212, as my chip variable rate fell below even a normal decent savings account but without the tax benefits of an ISA..
All legit money and legit ISA to ISA port /transfer or whatever the technical term is.
The rate on my T212 cash ISA is now doing the same thing so, I'll likely lift and shift it again for maybe a 0.4% gain.
It's stupid to leave the money in one place with something like a cash ISA or a standard savings account.. Takes 30mins in MSE and choosing a new provider offering better rates.
It's money laundering protocol.
Can you explain to me how closing a current account [with hardly anything in it] and then opening another current account 12 months later is linked to money laundering?
Serious Q.... I'm very naive on this stuff (probs cos I don't have money to launder 😫)
It's money laundering protocol.
Can you explain to me how closing a current account [with hardly anything in it] and then opening another current account 12 months later is linked to money laundering?
Serious Q.... I'm very naive on this stuff (probs cos I don't have money to launder 😫)
It's not... It's simply a bullying tactic to retain customers on lower rates.
Never debated the rate drops. Either you didn't read the op. Or you have not written what you meant to write in your comment.
Because your statement was regarding them preventing you reopening it. Get your rebuttle to.me.callling it tin foilhattery doesn't actually mention anything about them preventing you reopening it.
Can you explain to me how closing a current account [with hardly anything in it] and then opening another current account 12 months later is linked to money laundering?
It's suspicious behaviour. That is behaviour that is not seen as normal. And as chase have recently had heavy fines for non compliance in AML regulations that are holding no prisoners. Its been all over the news.
Edit. Forget it
Having seen the chaps posting history over the last ,3 months or so I think the YouTube research is taking hold. Can't argue with that level of research.
Never debated the rate drops. Either you didn't read the op. Or you have not written what you meant to write in your comment.
Because your statement was regarding them preventing you reopening it. Get your rebuttle to.me.callling it tin foilhattery doesn't actually mention anything about them preventing you reopening it.
Can you explain to me how closing a current account [with hardly anything in it] and then opening another current account 12 months later is linked to money laundering?
It's suspicious behaviour. That is behaviour that is not seen as normal. And as chase have recently had heavy fines for non compliance in AML regulations that are holding no prisoners. Its been all over the news.
Changing accounts to chase a higher interest rate, or an account with maybe some benefits that suits you is not suspicious.. It's prudent and sensible.
Would you stay with the same car insurance company next year despite them charging you possibly several hundred quid a year more then the competition?
No, of course you wouldn't.
It's a financial product at the end of the day... So you go with what's best for you... More often than not it's the cheapest (in terms of insurance).
Of in terms of savings accounts you switch to one that pays a bit more.
Just common sense if you ask me.
It’s not a very effective bullying tactic if the customer isn’t aware of it when they shut the account.
No different to any other bank in that’s it’s a business decision. Nothing to do with AML and Fraid prevention.
Most current accounts have an introductory offer (Chase I think is 1% cashback) and opening an account involves a not insignificant cost to set up (credit check, IDV, post and plastics). Link to this customers who churn to other providers banks include T&C’s to mitigate the costs of managing churn.
Seen plenty of posts on how people move from bank to bank to hoover up the incentives but be aware you are reducing your choice in the future. Access to a basic bank account is a right but not to any other account types.
Chase bank is very good (number 1 in fact for overall service quality). Interest rates are great and I have just got a Chase credit card with 0% for 18 months. Maybe the OPs daughter should have stayed with Chase and ditched some of the others to keep her banking simpler (not sure why it was complicated, how many current accounts did she have and why, money launderer?)
Having worked in financial services for thirty five years, and a decent chunk of that in retail banking, I'm always intrigued by the gap between how people banking works and how it actually works.
Well most people probably assume that when they lend money to a bank they get paid an interest rate for doing so and when they borrow money from a bank they pay the bank for letting them use the banks money. But hey after 35 years of financial engineering to deliver grotesque profits to the financial sector and those that work in it, far and away over what they deserve for sliding money from one side of the desk to the other - who knows how it works?.....I mean many financial services employees I've spoken with don't even know so you can't really blame the people can you.
Had a friend who worked for Chase for a while, when they changed their in office policy post pandemic they then started penalising people who hadn't met it before the the date change. They sounded like a lovely group of people. Would avoid happily for as long as possible.
And there's plenty of competition from rival institutions... brand loyalty when it comes to financial products is just very, very daft, IMO.
You have to look at the core product, and almost disregard some of the 'new customer incentives' to some extent - quite often they are very resttrictive, as in you have to pay in so much, but not too much as to take advantage.
Virgin money is a great example, some really good introductory deals/rates as long as you don't put too much money in... so it basically becomes pointless for the customer, and you'd be better off with a different company, even if the interest is a little bit lower.