More transfer/withdrawal controls in 2014 and beyond?

[ATCclears]

The following email was sent to me today from a friend in Upper Michigan. The email message is unedited, except for the swearing. Take note of the currency control.

You might check with your own financial institution in the year ahead to understand any transfer-out or withdrawal limits. I expect we'll see more of this as financial institutions implement controls to keep themselves solvent...

Peter

Pete, we are leaving for a new start to our life to Belize in 6 days, \
so,I went to the credit union, 2 credit unions where I have plenty
of cash to get my cash. They won't give it to me. They gave me 1000 for
spending money, but I was trying to get out 10K for investment,
and they (shut me down), 30 day wait period. IT IS MY *bubblegum*
MONEY!!!!!!!!!!!!!!! What the *bubblegum*? It is my money and I cannot
get it out!!! REALLY? This is the start!!! I want my money to go
to vacation and invest, start a new life and I cannot get my own
money out of the *bubblegum* bank.....I am so pissed. I have worked
my *** off and I earned my keep, and now I can't
have my own money????? Really? What the *bubblegum* obumer, you
*bubblegum*. I am so pissed. MY MONEY. I CAN"T GET
IT OUT. The begining of the end is near.

Read More

 

[erudne]

ahh, off-hand, w/ no citation other than a 3rd hand e-mail, I have a hard time believing this

 

[ATCclears]

I stand behind my posting and my friend's comments. It's possible that financial institution changed their rules on outbound transfers and cash-withdrawal limits, and my friend didn't notice. However, even $5,000 doesn't seem like that much cash for a single branch to handle.

Peter

 

[Mark W.]

Nothing I need to worry about I couldn't take 10K out of the bank with a shotgun and a ski mask.

 

[matt_w]

This is pretty normal actually. Most banks have a daily withdrawal limit (my credit union is like $3k, bigger banks have a higher limit). If you want more than that, they have to "order" the cash, because they don't keep that much on hand. This can take a week or more, and you will have to sit down with the bank manager when you pick up the cash. The reason for this is that the bank needs to fill out government paperwork anytime a cash withdrawel of > $10K is requested.

Your friend is an idiot if he waited until 6 days before he had to move.

source: I have personally done this several times. The first time I tried to pull out a lot of cash I nearly flipped out.

 

[1stklass]

i've never had problems getting larger amounts of cash out of the bank. last time i took out more than 10k was about 4 months ago though. Oh, i bank at Chase and they have been AWESOME and have bent over backward to accommodate large withdrawals. I deposited a bank transfer check for 75k that should have taken a week to clear and my local branch made sure it cleared by the second day as i had a business transaction that i really needed to go through.

 

[matt_w]

Yeah I guess that's the benefits of doing business with the devil (JP Morgan/Chase).

 

[U201491]

It will get worse. Wait til the day you go there and the doors are locked.

 

[Trailboss]

Had a similar experience at Bank of America. Wanted to withdraw 8k from an account holding 20k. They said I could get 4k but would have to wait 5 working days and the rest of the 8k after 14 days. I asked for a cashers check for the full 20k and deposited it in another bank. I was able to withdraw the full 8k immediately.

 

[The Heretic]

This is pretty normal actually. Most banks have a daily withdrawal limit (my credit union is like $3k, bigger banks have a higher limit). If you want more than that, they have to "order" the cash, because they don't keep that much on hand. This can take a week or more, and you will have to sit down with the bank manager when you pick up the cash. The reason for this is that the bank needs to fill out government paperwork anytime a cash withdrawel of > $10K is requested.

Your friend is an idiot if he waited until 6 days before he had to move.

source: I have personally done this several times. The first time I tried to pull out a lot of cash I nearly flipped out.

The bank has to notify the gov. of transfers approaching $10K, whether they are $10K individually or that amount close together.

This however does not mean they need to delay the transfer as this all happens in the background and the customer isn't involved.

I was able to transfer $70+K via wire transfer with very little notice to my bank - first by phone and then by fax. I've done multiple money transfers via check that way too - it took a few days for the checks to clear though.

I can (and have several times) get up to $2600 per day in cash - more would require a couple business days notice to my credit union so they can have the cash on hand, or they can give me a cashiers check which I can take down the street to a larger bank and cash.

Thirty days is way too long for $10K, and if true then I would close my account there and move it somewhere else that is a little more reasonable.

Banks and credit unions keep 80 to 90% of your funds invested somehow, often in the stock market, or by loaning it out to other customers, but $10K is nothing to them - $10M would be something else though.

There are a number of things a person can do to get around the alleged 30 day time limit - write a check on the account. If it is a savings account, have them transfer to the checking account. People write $10K+ checks every day.

I just take leave to doubt that this story is true.

 

[The Heretic]

Had a similar experience at Bank of America. Wanted to withdraw 8k from an account holding 20k. They said I could get 4k but would have to wait 5 working days and the rest of the 8k after 14 days. I asked for a cashers check for the full 20k and deposited it in another bank. I was able to withdraw the full 8k immediately.

That's the way to do it. I generally won't deal with BOA - heard too many stories like this about them.

I have my liquid "cash" in a small regional credit union that pays 2.25% interest up to $25K and they don't keep a lot of cash on hand, but they will give me a cashiers check, and if I give them notice they will have the cash there in a day or two.

 

[Sstrand]

You might consider this: When you deposit money in a bank IT BECOMES THEIRS.
They let you have access to it out of benevolence . . . THEIR benevolence!?!?!?!?

Sheldon