I'm considering switching my long term savings from HSBC to Amex Personal Savings (twice as much interest). I note that you have to "apply" -- would this involve a hard pull -- anyone know?
okay, didn't get a response to this -- opened an account, so I guess I'll find out.
On another note, I got a message from HSBC that they were going to charge a $12 fee PER TRANSFER! So, every time I put money into my savings account, they'd charge me $12? I DON'T THINK SO! Bye Bye HSBC!
Just wanted to add that HSBC now says their email was misworded, and it's not really a charge for regular transfers, just wire transfers. Apparently a lot of angry people called! Makes no difference, as they were already on the way out of my financial life.
Under FCRA 604, your application would be required to either be a request for credit or give rise to a "legitimate business need" on their part to review your credit as a condition for their determination.
Savings accounts normally do not involve a request for extension of credit, so permissible purpose would have to be based on their determination that they have a legitimate business purpose for the information. Potential account overdraft issues are normally considered legitimate purpose for knowing your credit status, as they may give rise to a potential loss on their part. They can usually concoct some business need.
As for whether it can be coded as a so-called "hard" inquiry, the FCRA does not regulate how inquiries are coded, only that the requestor must have a permissible purpose. If they pull, it could be coded as "hard." Entirely up to them.
A lot of banks will do a soft pull on your report just to verify information, like your address, name, all that good stuff. This way you don't have John Doe who lives at 1234 1st Ave, have an account opened by someone who is claiming to be John Doe who says their address is 1111 5th Ave. If the addresses on your report don't match the address you apply with you'll usually have to send over bank statements or utility bills to prove that it's you.
I opened an amex personal savings account last month, no hard pull. I've opened a few savings accounts this year and no hard pull, I don't think they ever do.
It's a YMMV per bank. I had a hard pull when I opened a BofA savings. Also had one each with share savings opening for CUs like Penfed, NFCU, and NASA FCU.