I'm afraid many banks offering reward checking accounts have been rejecting applicants due to the applicants having too many recent ChexSystem inquiries. This has been recently reported for First Clover Leaf Bank (see comments under this post) and at Westfield Bank. A reader provided this comment about his experience with Westfield Bank:
I currently have 3 open Rewards Checking accounts and attempted to add a 4th. My application for the Westfield Bank’s Dream Big Accounts was denied with the following email explanation -- "Thank you for your interest in Westfield Bank’s Dream Big Accounts. We regret to inform you that we are unable to open an account for you at this time. A ChexSystems report, though not a negative credit report, has listed numerous inquiries for you at other financial institutions. This indicates that this request to open an account with Westfield Bank is not for your primary checking account. Our Dream Big Account products were designed to attract new deposit customers to Westfield Bank who will be using these accounts as their primary checking account. Westfield Bank's risk guidelines prohibit us from making any exceptions to this report."
Most banks will do a ChexSystem inquiry when you apply for an account. ChexSystem is intended to be used to flag applicants who have abused banking privileges at other banks such as for bouncing checks or failing to pay fees.
In my opinion, it's not fair to use of ChexSystem to flag customers who have merely applied at other banks. Just think if a similar check were made in other types of businesses. What if grocery stores shared shopping info with each other? Could you imagine a store not giving you a sale price because you recently shopped at another store? That might indicate you're not using the store as your primary supermarket. There's nothing wrong for shopping for the best prices or the best rates.