I'm applying for a loan at a bank. Do I need to open a bank account from that bank if the loan is approved?
The bank where you receive your loan may well want to service your deposit needs as well. Some banks will require that you have a deposit account with them and they are within their rights to do so. Other banks may focus more on the loan and ask that you consider moving your accounts there while others may not even ask.
This requirement is more common when business/commercial loans are involved. In some cases there could be a requirement not only for an account, but for a deposited amount to be maintained. These are often referred to as compensating balances. Commercial accounts have different rules than consumers and often have fewer legal protections.
One thing we think you should keep in mind is your overall relationship with your bank. When you apply for a loan or have a problem with them, they often consider how long you have banked with them, how many accounts you have, the deposited amounts normally in the accounts, fees you pay, etc. before they decide how to react to your request. You may get faster service and better interest rates because of these factors. They want to take care of loyal customers.
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The bank where you receive your loan may well want to service your deposit needs as well. Some banks will require that you have a deposit account with them and they are within their rights to do so. Other banks may focus more on the loan and ask that you consider moving your accounts there while others may not even ask.