Banks that No Longer Accept Cash Deposits? What’s Next?
If your name does not appear on the account, JP Morgan Chase will not accept your cash. That may seem counterintuitive, but the nation’s largest bank recently changed its policy on cash deposits to do just that. As is customary, consumers are required to show an ID when making banking transactions. However, this policy states that if your name does not appear on that customer’s bank account, they cannot accept your cash.
“We are making this policy change for cash deposits only to combat misuse of accounts, including money laundering,” a Chase spokesperson said.
The new policy came about due to the highly publicized Ponzi scheme involving Bernie Madoff. Chase recently reached a $2 billion settlement over lax standards related to the Madoff Ponzi scheme. The policy which started in February 2014 will not affect check and money order deposits being made into personal investment, treasury, and commercial accounts.
“With Chase being America’s biggest bank, it may be creating a new trend that other banking institutions follow,” says Gary Herman, President of Consolidated Credit. “Even though it may be a bit inconvenient and unconventional, this new policy is meant to act as a form of protection.”
While they’ve stopped accepting cash, Chase has started pushing its Quick Pay service. This service allows customers to transfer money through a mobile app. Still, consumers who aren’t tech savvy and other personal finance experts are not too keen on using the app. The experts are concern that an app opens users up to new kinds of identity theft and fraud.
Still, there are other ways to make deposits into personal Chase accounts:
- Make a check or money payable to them
- Have the primary account holder add your name to their account
If you are unhappy with your bank’s policies, check out Consolidated Credit’s Banking 101 booklet. If you are still unsure on how to proceed, call us to talk to a certified credit counselor. To learn more about the dangers of identity theft, read our helpful guide to Identity Theft Protection.