Why do these muppets need me to have a chequebook?

[Deleted User]

One or two savings institutions insist on my having a thing called [FONT=&quot]chequebook before they allow me to open a savings account. I have a current account with Sort Code, Account number, credit and debit card, direct debits, standing orders and everything needed to run a current account in the 21st century. Yet they refuse to open a savings account because I don't have what they call a [/FONT][FONT=&quot]chequebook[/FONT][FONT=&quot]. My grandfather tells me that, back in the olden days before credit and debit cards were invented, people used to use a [/FONT][FONT=&quot]chequebook [/FONT][FONT=&quot]but they are of no practical use now. Yet Birmingham Midshires and [/FONT]ICICI Bank, to name two demand sight of them. Why don't they move into the 21st century and why doesn't MSE campaign for financial institutions to stop demanding such arcane instruments before they will open a savings account?

Archi_Bald

There is a simple reason: it is part of their ID verification process. They got both, confirmation that you hold a valid bank account, and your signature on one piece of paper.

Nobody forces you to open any accounts. If you find it unacceptable to use a cheque book, you have a choice of other accounts. Many of which pay 2-5 times as much interest as BM and ICICI accounts do.

TheTracker

I suppose the real question is why do banks persist with arcane ID verification processes that require the use of archaic process steps such as the production of chequebooks. The answer is usually one of cost to change the process and sometimes one of the longevity of the arcane guardians of such processes. We see this demonstrated by the low interest rates they are able to offer.

grey_gym_sock

sorry to use logic, but if having a cheque book would let you open an account you want to open, then it would be of practical use, after all ...

would your current account provider give you a cheque book if you asked for 1? i think some of them might.

[Deleted User]

Archi_Bald wrote: »

There is a simple reason: it is part of their ID verification process.

Take a look at this page:
http://www.icicibank.co.uk/personal/hisave-accounts/how-to-apply.page?
See the section headed 2 What documents do I need?
where it clearly states that if I pass electronic verification they do not need me to produce any further documents.So what's the need for an arcane chequebook to make a deposit of £1 or more when I have debit card, direct debit, or standing order facilities available?

Archi_Bald wrote: »

...you have a choice of other accounts. Many of which pay 2-5 times as much interest as BM and ICICI accounts do. .

Please tell me of an instant access account which pays more than 1.6% (BM) or 1.55% (ICICI Bank). If so I'll open it right way.

dunstonh

Yet they refuse to open a savings account because I don't have what they call a chequebook.

Their choice.

My grandfather tells me that, back in the olden days before credit and debit cards were invented, people used to use a chequebook but they are of no practical use now.

Yet half a billion cheques are processed every year. Plus, as has been pointed out by the excellent post by grey gym sock, you clearly have a practical use for one.

why doesn't MSE campaign for financial institutions to stop demanding such arcane instruments before they will open a savings account?

If you dont like it then go elsewhere.

There could be a number of reasons. A common one is that a cheque provides them proof of sort code and account number and account holder name. Its easy evidence for source of funds. it also reduces fraud when money is requested for withdrawals as it can be paid back to that known account.

xylophone

an instant access account which pays more than 1.6% (BM) or 1.55% (ICICI Bank). If so I'll open it right way.

Interest paying current accounts which many people use as savings accounts.....

http://www.moneysavingexpert.com/banking/compare-best-bank-accounts

J_B

Deleted_User wrote: »

One or two savings institutions insist on my having a thing called [FONT=&quot]chequebook before they allow me to open a savings account. [/FONT]

Methinks you need to take a chill pill

Plenty of folks still use cheques.
Many small businesses need cheques to survive, even larger ones use them quite a bit you know.

As most have said, if you don't like the rules, vote with your feet!

hoc

I do agree with OP. In most cases verification can be done electronically, physical proof should be an exception in which the chequebook may satisfy. BM's insistence on the cheque surprises me considering it is part of Lloyds Group.

[Deleted User]

dunstonh wrote: »

... as has been pointed out by the excellent post by grey gym sock, you clearly have a practical use for one.

What, you mean wait a couple of weeks for my bank to go to the expense of printing a book of otherwise useless paper to be posted to me? I then fill in one to the amount of £1 for these muppets to waste time and money sending it them by snailmail and shred the remainder of the unwanted paper as they are no use whatever and a security risk. How much money will be wasted on this futile exercise?

dunstonh wrote: »

There could be a number of reasons. A common one is that a cheque provides them proof of sort code and account number and account holder name. Its easy evidence for source of funds. it also reduces fraud when money is requested for withdrawals as it can be paid back to that known account.

Proof of Sort Code and Account number can be obtained more easily and at far less expense and time using a debit card, standing order or direct debit.

[Deleted User]

xylophone wrote: »

Interest paying current accounts which many people use as savings accounts.....

Been there, done that and I now need a savings account for the rest of my cash. Please tell me of an instant access savings account which pays more than 1.6% (BM) or 1.55% (ICICI Bank). If so I'll open it right away.