Can banks restrict accounts to residents to certain states? (union, credit card, money)

[md21722]

I am wondering if banks can legally refuse to open accounts for residents of certain states? Or states outside the states where they have physical branches?

[yellow4yield]

I would imagine they could refuse to do business with anyone they did not want to do business with!

And I would imagine the accounts they might not want to open for certain people would be checking accounts and credit cards.

However for something like a savings account or CD (Certificate of Deposit), I imagine they would be happy to accept money from anyone!

[myrc60]

I believe banks have to be licensed in any state they do business in; thus, your local bank may not be able to help if you move to another state where they are not licensed. Not sure licensing is the correct term, but surely it is something similar to that.

For instance, my old bank in Chicago (at the time was Fifth Third) was not operating in SC when we moved but they did do business in my home state of WV.

[Willy702]

Banks can have customers from any state they choose or any foreign country provided they follow regulations. Banks can refuse any customer as long as it isnt discriminatory in nature. They would have a hard time justifying refusing people from just the poorest cities or poorest part of a city, but refusing a state they dont operate in would be easily justified

[AlfredB1979]

I'm sure they can. I know credit unions I do biz at keep their clientele to within a certain county they are based in. If you don't work, live or attend school in said county, you're SOL...