I work for a small hospital in NY. Our paychecks are drawn on a large bank branch in town. We were just informed that the bank that the checks are drawn on will no longer cash the checks unless you open an account with them. Can they do that? The funds are being drawn from this bank/branch. Is feels like I'm being blackmailed into opening an account with them and obviously, if I use my own bank, I have to wait for the funds to clear.
Federally-chartered banks can legally impose this kind of fee, although it's certainly not a wide-spread practice to do so. Depending on the law in your state, a state-chartered bank may also assess a fee.
Find out if the hospital can directly deposit your pay to your bank account. It's certainly a convenient way to get paid, because you don't have to go to the bank to deposit your money, the funds are available for you to withdraw on payday (no waiting for clearing), and you don't have to wait in any line to cash your check. Good weather or bad, even if you don't make it to the hospital to get your paystub, your pay will be on deposit on payday morning.
BankingQuestions.com is a free service made possible by the generous support of our advertisers. Advertisers are not responsible for site content. Please help us keep BankingQuestions.com FREE by supporting our advertisers. When you see an ad for a product or service you may have an interest in, click through to learn more.
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
Federally-chartered banks can legally impose this kind of 