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Thinking of withdrawing cash from your bank? Here are some bank rules you need to know about.

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Dover Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Oct-16-11 07:40 AM
Original message
Thinking of withdrawing cash from your bank? Here are some bank rules you need to know about.
Edited on Sun Oct-16-11 08:04 AM by Dover
This will not apply to you if you are simply closing out an account by transferring funds to a new bank or credit union via wire transfer or check or if a total cash withdrawal is under $10,000.



Bank Secrecy Act

The Bank Secrecy Act of 1970 (or BSA, or otherwise known as the Currency and Foreign Transactions Reporting Act) requires financial institutions in the United States to assist U.S. government agencies to detect and prevent money laundering. Specifically, the act requires financial institutions to keep records of cash purchases of negotiable instruments, and file reports of cash purchases of these negotiable instruments of more than $10,000 (daily aggregate amount), and to report suspicious activity that might signify money laundering, tax evasion, or other criminal activities. Many banks will no longer sell negotiable instruments when they are purchased with cash, requiring the purchase to be withdrawn from an account at that institution.

MORE > http://en.wikipedia.org/wiki/Bank_Secrecy_Act



These are some additional rules listed on one bank's website. Check the rules at your own bank:

Withdrawal Restrictions and Penalties on Interest Earning Accounts.

It is the Banks policy to permit Accountholders to withdraw funds from all Accounts, other than certificate of deposit Accounts, upon request. Federal law requires, however, that the Bank reserve the right to require at least seven (7) days (including large cash withdrawals) prior notice of withdrawals or transfers from any interest earning account other than a certificate of deposit Account. The Bank may limit daily cash withdrawals. A fee may apply to shipments of special cash orders. Additionally, money market Accounts are limited to not more than six withdrawals or transfers to another Account in the name of the Accountholder at the Bank, per month, of which not more than three such withdrawals may be payable to third parties by means of an Accountholders check or debit card. A penalty, as provided in the Banks Schedule of Fees, may be charged to the Accountholder if these limits are violated. For Accounthholders who continue to exceed these limits on more than an occasional basis after being contacted by the Bank, the Bank may terminate money market Account checking and transfer privileges.

http://www.presidential.com/deprules.htm























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ProgressiveProfessor Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Oct-16-11 09:09 AM
Response to Original message
1. Many of those rules go back quite some time and are there to stop "runs" on a bank
The efficient way to move your account is to write a check against it for just about everything and deposit it in your new bank. After 60 days you can close the original account since any checks outstanding on it are then invalid.

Not as splashy, but it is the best way.
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hobbit709 Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Oct-16-11 09:13 AM
Response to Original message
2. VERY few people I know have $10K or more laying around in their accounts
Edited on Sun Oct-16-11 09:14 AM by hobbit709
I certainly don't. My current savings balance is $100 and my checking is about $250. i keep about $2K in my safe.
Of course i put all my money in my credit union years ago.
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dems_rightnow Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Oct-16-11 09:30 AM
Response to Original message
3. There are exemptions, of course
Exemptions for businesses that typically collect and deposit over $10,000 a day. They can apply for a reporting exemption.

And ANY business who receives over $10,000 is cash in a single (or related) transactions is required to report it on Form 8300.
http://www.irs.gov/businesses/small/article/0,,id=14885...

Realistically, there are very few legal reasons why one might have $10,000 in cash.
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Ilsa Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Oct-16-11 09:42 AM
Response to Original message
4. Thank you. This will help accountholders withdraw without penalties being attached.
For some people, it may take more than one day. The point is that it is accomplished.
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meow2u3 Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Oct-16-11 09:51 AM
Response to Original message
5. Here's how to get around the bank rules
Withdraw enough money from your current account to open a new account in a credit union or small bank.
Go to new bank and open accounts.
Gradually withdraw money from old account, wait a day, and deposit money in new account, but make sure you leave enough money in your old account to cover auto debit expenses (if applicable).
When you have enough funds in your new account, contact any and every utility, ISP, phone company, insurance company, etc., in which you have an "autopay" agreement and have them link the autopay to your new account.
Wait about a month to close old account.

I had to change banks using this process 6 years ago because my old bank had no branch where I moved to.
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dems_rightnow Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Oct-16-11 09:55 AM
Response to Reply #5
6. Even easier.
Write a check to yourself and deposit in the new bank. Or have old bank wire transfer to new bank.

It's only currency transactions that fall under the Bank Secrecy Act.
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FarCenter Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Oct-16-11 09:56 AM
Response to Original message
7. If you have > $10,000 in your account, the new fees probably don't apply to you
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2pooped2pop Donating Member (212 posts) Send PM | Profile | Ignore Sun Oct-16-11 10:49 AM
Response to Original message
8. You can take out more
They will report any transactions over 10,000 coming in or going out, as well as transactions that look like they are trying to skirt the 10,000 reporting rule. (like several 9,999.00 transactions) It is difficult to get large amounts of cash from the bank. They say they don't keep it on hand and you may have to more or less make an appointment if you want cash, or perhaps go to a specific branch.

At least that's how it worked several years ago when I had to handle someones transactions.
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