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Home >> Checks/Money Orders >> Checks You Received
Open an Account to Cash My Paycheck?
I went to cash a paycheck today at the bank that it was drawn on. I had ID, but they said that I have to open an account with them before I can cash my check. Is this legal?
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 A bank that refuses to cash its customer's payroll checks unless the payees have accounts, could be risking problems with its own depositors -- the companies that issue the payroll checks. If the checks are presented for payment in person by the payees, and the payees have legitimate adequate identification, refusal to pay those checks, assuming the checks are good, could be considered "wrongful dishonor", and the check-issuing companies could have reason to sue the bank for damages. There's no criminal violation here, though.
You, as the payee of those checks, are left with two options if you don't want to open an account at that bank. First, you can deposit your paychecks in your own account at another bank. The second option, if your employer offers it, is direct deposit of your paycheck to the account and bank of your choice. The latter option would mean you would not need to visit the bank to make your deposit, and you could use an ATM or debit card, at your convenience, to withdraw any needed cash.
Published on BankingQuestions.com 8/01/08
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