These measures have been discussed before so i wonder why they have surfaced now:
Among the measures being discussed is the option to stagger a greater portion of withdrawals over longer periods of time, one of the sources said. Imposing fees on exits is also an alternative being discussed, two of the sources said.
Rewarding clients who tie up their savings for longer with higher interest rates is being debated, one of the sources said.
I took over my dad’s finances in January of this year after he had a stroke. Although I have been a joint owner on his accounts ever since mom died 10 years ago, I never asked dad how much money he had. I was shocked at the amount of money he had distributed between various accounts. What was equally shocking was the dismal interest he was earning in most of the accounts. He had one account that paid a fair interest rate, so I tried moving most of the money into that account. I found out that you can only move 3k in any single transaction, or 5k in a 30 day period.
Maybe that is a security issue, but it sure is inconvenient.
I believe it is indeed both: security, and inconvenient. You might be able to speak with a representative about making larger moves in shorter time frames. Worth trying.
I had to move some money out of Schwab to Vanguard when some RSU’s vested and ran into a limit (higher than that, but a limit nonetheless). Speaking to a rep turns out I could have had them bypass that limitation if I wanted to. But that inconvenience is what makes it partly more secure and a bit more difficult for someone to drain your account.
I moved a large amount out of Schwab with no problems. I did try moving a large amount out of my bank and they were not going to let me do it. They told me it had to do with laundering of money. After talking to the Manager they let me withdrawal it.
Andy
Restrictions on withdrawls have been buried in the T&Cs of bank accounts for as long as I can remember. Remember the bank run sequence in “It’s A Wonderful Life”? One old phart demands to withdraw all of his money. George hands him a form and says something along the lines of “sign here and you’ll get your money in 30 days”. The guy goes “WHAT?” George replies “those are the terms you agreed to when you opened your account”.
Steve
Mine has.
However, I recall that many large depositors were withdrawing cash from Credit Suisse so something went wrong somewhere
As we see, frequently, those with size have different rules.
Steve
There are two solutions to this problem:
This process is 100% guaranteed to work.
That sounds like the RECEIVING account might have a restriction, not the distributing account.
Some higher interest accounts may have restrictions on additions. I have worked in an ancillary banking environment for decades and I have never heard of a withdrawal so low and restrictive on a deposit account but I have heard on deposit restricts on specialized accounts. It certainly is not a security issue. You should have the same access as the owner.
Thanks for the solutions. After the initial discovery of the restrictions, I did read somewhere on their site that in person withdrawals could be larger. This Credit Union is in another town, so I was going to wait until I had other business in that town to make the transfers.
I don’t want to close these accounts because that is where dad’s pension and RR retirement checks get deposited. It been a challenge getting all of the address changes done. I don’t want to attempt changing a direct deposit.
Unfortunately, dad’s future financial needs have changed (meaning his health has changed too) so I’m no longer looking to move his surplus funds at that institution. We are listing his home for sale and those proceeds will be deposited in another credit union that he has accounts in. They are local which will make doing business with them far easier.
It’s solely on the withdrawing side because the restriction exists before the receiving bank is even noted. I’ve seen it very often, from smaller banks to large money center banks to specialty banks (“Internet” banks, for example).
Here’s an example, I just screenshotted a moment ago from an account of mine for illustration.
The accounts are all at one credit union. Two checking and one savings account. And I’m a joint owner of the accounts.
My wife and I have accounts at a local bank. Two checking, one saving and one trust account. We have moved good size sums between those accounts without the restrictions.
I don’t understand why dad’s credit union has those limits.
Let me give you a hint.
Of Banks, Savings and Loans, and Credit Unions, which one has not been bailed out by the federal government in the last 40 years?
–Peter
Transfer limit is not necessarily the same as a withdrawal limit. Transfer limits are a lot more common but have you tried to, say, pull all the funds via a wire or a close request?
Ahh, that might explain it. I know CUs can be a bit more wonky on transfers. I have had both family and clients complain about their limited ability to transfer money from CUs. Certainly gives one a bit of pause about having accounts with those specific institutions.
I’m pretty sure that a pull via wire or a close request would work fine. But the original poster was asking about transferring more than $3k/5k.
Most banks will charge for a wire, so doing that regularly for a monthly transfer wouldn’t be economical.
