This topic has been discussed before on the forum, but it hit home today for me.

US Bank Notification:

"For regulatory purposes your Business Checking Account may be divided into two sub-accounts: a checking sub-account and a money market sub- account. We will treat these accounts as a single account for most purposes and will not report balances separately or report transfers between sub accounts on your statement. ----

At various times during the statement cycle, if your checking sub-account ledger balance exceeds a threshold balance, we may transfer all funds in excess of that amount into a money market sub- account. As transactions reduce the checking sub-account balance, we will transfer funds back into the checking sub-account from the money market sub-account so that we can pay your checks or negotiable orders of withdrawal. We will make up to six such transfers-----per statement cycle. Upon the sixth---we will transfer the entire balance---to the checking sub-account."

"Although we have no intention of exercising this right, Federal regulations require that we reserve the right to require seven days written notice prior to withdrawal or transfer of any funds in your money market sub-account"

Translation~ they can freeze your cash withdrawals for seven days, even though you did not actually give them consent to move your monies out of your checking account.

This is another way for them to covertly limit cash withdrawals. This is simply insane. I feel sorry for the majority of the US Bank customers who are not reading their mail enclosures and *understanding the ramifications*.

Are you paying attention yet? If you are, send them a message.

-- OR (orwelliator@biosys.net), August 06, 1999

Answers

OR, Can you tell us the name of the bank? Did this notice come with your monthly bank statement? Amazing!!!

Guess there are all kinds of ways they can freeze up you money if they want to.

-- flb (fben4077@yahoo.com), August 06, 1999.

This is a variation on the old "sweep account" product. I lets you gain interest on an account you can write checks upon, normally a big no-no in business accounts. It is a classic risk/return model. If you believe that the risk of participating in such an account (they might limit your access to cash) outweighs the return (interest payments on a check accessible business account), don't participate.

If you must participate as part of the business account, tell them you wish to set the threshold for transferring into your money market sub-account at a ridiculously high level, or change banks to one that doesn't have this kind of account structure.

One last thing: This structure is almost always only on business accounts. J.Q. Public, unless he has a business account, will not be affected.

that is all.

-- scared sh**less (nottellingyou@now.com), August 06, 1999.

flb, I gave the name~ U.S. Bank

http://www.usbank.com/cgi/cfm/home.cfm

-- OR (orwelliator@biosys.net), August 06, 1999.

This is not a Y2K related change. I received this type of notice several years ago, maybe even 5 years ago. FYI credit unions typically have a similar privilege to delay withdrawals. Not a Y2K initiative, but old news.

-- Joseph R. Whaley (whaley@attorney-us.com), August 06, 1999.

FYI. Wells Fargo instituted this policy for my 'CONSUMER' account in February. The notice was in little, teeny print. Grab your socks.

-- Question46 (Godzillabunny@wampum.com), August 06, 1999.

Mr. Whaley, what do you want to wager that this program WILL be sited as the reason for not having YOUR cash funds available at the end of the year?

-- OR (orwelliator@biosys.net), August 06, 1999.

You know, this is most annoyuing. They pay so damn little for the money market, that I often choose to leave whatever I might need in the next FEW months in my checking account. I think I ought to have that option, no?

-- Mara Wayne (MaraWayne@aol.com), August 06, 1999.

I believe they are doing the same thing at Key Bank here in Washington state. I think that splitting of your checking account and delaying your ability to get at your funds was part of what i read in their new funds availability rules.

-- Ann Fisher (zyax55b@prodigy.com), August 07, 1999.

The reason for this is that banks/credit unions can USUALLY get away with having only a few percent of their deposits available to withdraw in cash. As long as the sheeple sleep, it works. You go to the bank or the ATM and get your cash, no problemo.

See, you think your demand accounts are really such, but the fine print you are talking about, is the reality -- that they are not demand deposits, and you have to give them notice. Usually, they waive that, and you get your cash pronto, like I mentioned above.

Any problemm, and they will kick in those delay provisions. To prevent "bank runs." A bank run will hose up the bank. For a bank to not be susceptible to a run, it would need 100% requirements. No bank in this corrupt system does. Of course, in an honest banking system, you would not get "interest." That's the lure they suck you in with.

Withdraw early and withdraw often. Convert some to real stuff, including metal (gold and lead). Bury/hide it.

-- A (A@AisA.com), August 08, 1999.

The "seven day notice" mentioned above doesn't seem TOO bad, does it? BUT, READ MORE OF THE FINE PRINT. THEY CAN UNILATERALLY CHANGE THE TERMS OF YOUR ACCOUNT(S). Seven days could become 30 days, could become 60 days, could become 90 days...

-- A (A@AisA.com), August 09, 1999.