diff --git a/electrum b/electrum
index 64a6784a1..7db9c61c8 100755
--- a/electrum
+++ b/electrum
@@ -120,11 +120,12 @@ def run_non_RPC(config):
         passphrase = config.get('passphrase', '')
         password = password_dialog() if keystore.is_private(text) else None
         if keystore.is_seed(text):
-            k = keystore.from_seed(text, passphrase, password)
+            k = keystore.from_seed(text, passphrase)
         elif keystore.is_any_key(text):
-            k = keystore.from_keys(text, password)
+            k = keystore.from_keys(text)
         else:
             sys.exit(str(e))
+        k.update_password(None, password)
         storage.put('keystore', k.dump())
         storage.put('wallet_type', 'standard')
         storage.put('use_encryption', bool(password))
@@ -146,7 +147,8 @@ def run_non_RPC(config):
         password = password_dialog()
         passphrase = config.get('passphrase', '')
         seed = Mnemonic('en').make_seed()
-        k = keystore.from_seed(seed, passphrase, password)
+        k = keystore.from_seed(seed, passphrase)
+        k.update_password(None, password)
         storage.put('keystore', k.dump())
         storage.put('wallet_type', 'standard')
         storage.put('use_encryption', bool(password))