I've been in the banking business for several years now and while I've never dealt with the deposit side of things, I did have to take a million classes in compliance every quarter covering all the things mentioned in this post.
First of all, I have to agree with SwampWitch wholeheartedly about credit unions. Most of them are really the best way to go. They are mostly non-profit and exist to support a select community that they define (a company, an agency, county, school district, etc). Most people are qualified to be a member of a credit union based on location and/or profession (school teachers, government workers). Credit unions invest in their customers which means they are often able to lend money in situations where others can't. There are a few cons to credit unions, such as location. Most don't have a million branch offices like banks do. But in my opinion, the pros outweigh the cons.
On the matter of your account being closed by the bank, there are a few circumstances that warrant it. Banking regulations have tightened severly over the last several years and one thing that every account must have is certain information on every account holder. If they are unable to obtain this information from you, they are required to close or freeze your account. If I remember correctly it's your SSN, a photo ID, and a signature. A lot of banks always asked for that stuff, but some didn't and now have to correct their records, especially if they are being audited.
Another thing is that savings accounts can't have more than 4 online transactions a month. This is a regulation and not something that your bank gets to decide on. They are allowed to give you one warning the first time you do it. The second time you do it they can either convert your account to a checking or close the account.
Some banks offer interest-bearing checking accounts that are actually savings accounts with limits to online transactions. You may be able to write unlimited checks on those accounts, but online transactions are limited.
If this is a genuine checking account and they closed it without any reason, or based on number of online transactions, then you should file a complaint with their regulators. You can find out who regulates them by looking them up on this site: http://www.ffiec.gov/.
I have not set foot in my bank as a customer in over 3 years and have never had a problem doing all my banking online by staying within the online transaction limit between my checkings and savings.
First of all, I have to agree with SwampWitch wholeheartedly about credit unions. Most of them are really the best way to go. They are mostly non-profit and exist to support a select community that they define (a company, an agency, county, school district, etc). Most people are qualified to be a member of a credit union based on location and/or profession (school teachers, government workers). Credit unions invest in their customers which means they are often able to lend money in situations where others can't. There are a few cons to credit unions, such as location. Most don't have a million branch offices like banks do. But in my opinion, the pros outweigh the cons.
On the matter of your account being closed by the bank, there are a few circumstances that warrant it. Banking regulations have tightened severly over the last several years and one thing that every account must have is certain information on every account holder. If they are unable to obtain this information from you, they are required to close or freeze your account. If I remember correctly it's your SSN, a photo ID, and a signature. A lot of banks always asked for that stuff, but some didn't and now have to correct their records, especially if they are being audited.
Another thing is that savings accounts can't have more than 4 online transactions a month. This is a regulation and not something that your bank gets to decide on. They are allowed to give you one warning the first time you do it. The second time you do it they can either convert your account to a checking or close the account.
Some banks offer interest-bearing checking accounts that are actually savings accounts with limits to online transactions. You may be able to write unlimited checks on those accounts, but online transactions are limited.
If this is a genuine checking account and they closed it without any reason, or based on number of online transactions, then you should file a complaint with their regulators. You can find out who regulates them by looking them up on this site: http://www.ffiec.gov/.
I have not set foot in my bank as a customer in over 3 years and have never had a problem doing all my banking online by staying within the online transaction limit between my checkings and savings.