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  Home >> Accounts >> Business Accounts  
Deposit Problem

I have been a customer at a bank for 25 years, always depositing my small business checks in my personal account. Today the teller said I oculdn't do that, so did the manager on duty, all with no explanation. What can I do? I have a mortgage there as well.


It is a poor practice for a bank to allow business checks to be deposited into a personal account. It is that simple. Most banks do not allow this, and it sounds like your bank has now figured this out.

Here is one example of why this is not a good practice. Person A owns a business and deposits checks payable to the business in his personal account. He sells the business, but continues to receive some checks. He deposits those in the personal account. The business now complains that checks for their business are being cashed elsewhere. The bank taking those deposits will have to pay the business all the money owed and try to collect from A. This is just a bad scenario that need not happen.

You should open a separate business account. Your business can then pay you and thereby transfer funds to your personal account.

Published on BankingQuestions.com 11/25/08