Credit check for a savings account?

lr1277

On this forum, more than once, I have seen statements to the effect of no credit check to open a savings account. I inferred with a savings account because the bank was not lending you money in any way, a credit check would not be performed.

A post in this thread suggests Santander performed a credit check before opening a savings account:

https://forums.moneysavingexpert.com/discussion/6581724/banks-and-fraud-markers 

So perhaps opening a savings account is not clear cut, or I misunderstood the whole situation?

TheSpectator

lr1277 said:

On this forum, more than once, I have seen statements to the effect of no credit check to open a savings account. I inferred with a savings account because the bank was not lending you money in any way, a credit check would not be performed.

A post in this thread suggests Santander performed a credit check before opening a savings account:

https://forums.moneysavingexpert.com/discussion/6581724/banks-and-fraud-markers 

So perhaps opening a savings account is not clear cut, or I misunderstood the whole situation?

Where does the article suggest they carried out a credit check for a savings account? Reads to me that they were existing accounts.

Regardless, ID checks may still be carried out for a savings account which would pick up any CIFAS markers.

dunstonh

lr1277 said:

On this forum, more than once, I have seen statements to the effect of no credit check to open a savings account. I inferred with a savings account because the bank was not lending you money in any way, a credit check would not be performed.

A post in this thread suggests Santander performed a credit check before opening a savings account:

https://forums.moneysavingexpert.com/discussion/6581724/banks-and-fraud-markers 

So perhaps opening a savings account is not clear cut, or I misunderstood the whole situation?

Can you point to where it says a credit check was made?

are you mistaking a soft check with a hard check?
AML checks are soft checks and not hard checks.

lr1277

In the post by @KittenChops she quotes from the article (I assume):

Then the fraud markers lay undetected on the database until Santander offered you a higher interest savings account. When you applied, its credit check identified the markers and your accounts were closed."

I noted the section in bold.

lr1277

dunstonh said:

lr1277 said:

On this forum, more than once, I have seen statements to the effect of no credit check to open a savings account. I inferred with a savings account because the bank was not lending you money in any way, a credit check would not be performed.

A post in this thread suggests Santander performed a credit check before opening a savings account:

https://forums.moneysavingexpert.com/discussion/6581724/banks-and-fraud-markers 

So perhaps opening a savings account is not clear cut, or I misunderstood the whole situation?

Can you point to where it says a credit check was made?

are you mistaking a soft check with a hard check?
AML checks are soft checks and not hard checks.

Yes I didn't understand the difference between a soft and a hard credit check.

Looking on the internet now, a soft credit check does look at your credit report but doesn't do anything to affect your (made up) credit score.

I suspect any credit report will show fraud markers.

But as my first post suggested, I was under the impression for a savings account no credit check would be performed because the bank was not lending any money. I hadn't thought about an ID check but yes that would need to be performed. But would an id check reveal a fraud marker?

Edited to add: According to @TheSpectator yes fraud markers are searched for on an id check. Did not know. Thanks.

KittenChops

lr1277 said:

In the post by @KittenChops she quotes from the article (I assume):

Then the fraud markers lay undetected on the database until Santander offered you a higher interest savings account. When you applied, its credit check identified the markers and your accounts were closed."

I noted the section in bold.

Link to the article from which the quote was taken from 
https://www.theguardian.com/money/2025/jan/20/all-my-accounts-were-shut-down-when-tsb-labelled-me-a-fraudster-instead-of-the-victim

dunstonh

lr1277 said:

dunstonh said:

lr1277 said:

On this forum, more than once, I have seen statements to the effect of no credit check to open a savings account. I inferred with a savings account because the bank was not lending you money in any way, a credit check would not be performed.

A post in this thread suggests Santander performed a credit check before opening a savings account:

https://forums.moneysavingexpert.com/discussion/6581724/banks-and-fraud-markers 

So perhaps opening a savings account is not clear cut, or I misunderstood the whole situation?

Can you point to where it says a credit check was made?

are you mistaking a soft check with a hard check?
AML checks are soft checks and not hard checks.

Yes I didn't understand the difference between a soft and a hard credit check.

Looking on the internet now, a soft credit check does look at your credit report but doesn't do anything to affect your (made up) credit score.

I suspect any credit report will show fraud markers.

But as my first post suggested, I was under the impression for a savings account no credit check would be performed because the bank was not lending any money. I hadn't thought about an ID check but yes that would need to be performed. But would an id check reveal a fraud marker?

Edited to add: According to @TheSpectator yes fraud markers are searched for on an id check. Did not know. Thanks.

The AML checks carried out for savings accounts will include sanctions search, PEP search, adverse media searches, ID searches and any CIFAS markers.

lr1277

Then it was my misunderstanding. Thanks for the info.

surreysaver

Perhaps banks, such as TSB with dodgy computers and dodgy staff (whether by incompetence or not) shouldn't be able to put markers against people's names without an independent organisation being involved