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> Regular savings account banks do typically do this, for example the bank has the right to ask for 7 days to honor a withdrawal Source? I'm familiar with sav

> Regular savings account banks do typically do this, for example the bank has the right to ask for 7 days to honor a withdrawal Source? I'm familiar with savings accounts described as "instant access" or "easy access" where you can get your money out whenever you feel like it. Unless the bank actually markets an account as a "notice account", can they really ask for 7 days notice?

datadata 4y ago
Here is an example: https://www.capitalone.com/bank/disclosures/savings-accounts/online-savings-account/ https://www.capitalone.com/bank/disclosures/savings-accounts... > Advance Notice of Withdrawal: Under federal law, we must reserve the right to require you to give us at least 7 days written notice before you take money out of your 360 Savings. (This hardly ever happens but legally we have to say it!)
- logifail 4y ago
  > Here is an example [..] Interesting, and this appears to be federally-mandated. Wow. Are there other jurisdictions where this kind of rule exists?
  - Symbiote 4y ago
    I used to have savings accounts with similar terms in the UK. They have a higher interest rate. https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/#notice https://www.moneysavingexpert.com/savings/savings-accounts-b...
    - logifail 4y ago
      Sure, I understand the general principle of locking up your investment for longer and [perhaps] getting better conditions, but the notice periods on those accounts aren't government-mandated, though?
      - selectodude 4y ago
        Sort of - to the FDIC, the difference between a savings account and a checking account is that a checking account is a "demand deposit" account that historically didn't pay interest and a savings account is a "time deposit" that does. Capital One is telling you that this savings account is a time deposit to legally categorize it as different from a demand deposit so the FDIC treats them as two separate categories and gives them both the $250,000 deposit insurance. It's federal law that requires them to delineate the two.
User23 4y ago
Of course. A depositor might walk in and ask to withdraw more money than the bank has cash on hand. The seven days gives the bank time to get the requisite notes (or call the appropriate law enforcement agency).
- logifail 4y ago
  > A depositor might walk in and ask to withdraw more money than the bank has cash on hand. I'm sure you didn't mean it that way, but that sounds rather like an excuse for a bank to hold on to someone's money. Withdrawals don't have to be in cash, banks can issue cheques or money orders (always assuming they still exist in your jurisdiction!) If not the bank can simply pay out your balance by electronic transfer to an account you specify.
  - User23 4y ago
    I was referring specifically to those rare cases where someone exercises their right to withdraw coins and Federal Reserve notes despite it being virtually always imprudent. For example here[1] is a story about a man who asked for $600,000 in cash. The bank didn't have that many coins and bills on hand and actually took considerably longer than seven days to acquire it. [1] https://www.investopedia.com/terms/n/notice-of-withdrawal.asp https://www.investopedia.com/terms/n/notice-of-withdrawal.as...

datadata 4y ago

Here is an example: https://www.capitalone.com/bank/disclosures/savings-accounts/online-savings-account/ https://www.capitalone.com/bank/disclosures/savings-accounts... > Advance Notice of Withdrawal: Under federal law, we must reserve the right to require you to give us at least 7 days written notice before you take money out of your 360 Savings. (This hardly ever happens but legally we have to say it!)

logifail 4y ago
> Here is an example [..] Interesting, and this appears to be federally-mandated. Wow. Are there other jurisdictions where this kind of rule exists?
- Symbiote 4y ago
  I used to have savings accounts with similar terms in the UK. They have a higher interest rate. https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/#notice https://www.moneysavingexpert.com/savings/savings-accounts-b...
  - logifail 4y ago
    Sure, I understand the general principle of locking up your investment for longer and [perhaps] getting better conditions, but the notice periods on those accounts aren't government-mandated, though?
    - selectodude 4y ago
      Sort of - to the FDIC, the difference between a savings account and a checking account is that a checking account is a "demand deposit" account that historically didn't pay interest and a savings account is a "time deposit" that does. Capital One is telling you that this savings account is a time deposit to legally categorize it as different from a demand deposit so the FDIC treats them as two separate categories and gives them both the $250,000 deposit insurance. It's federal law that requires them to delineate the two.

User23 4y ago

Of course. A depositor might walk in and ask to withdraw more money than the bank has cash on hand. The seven days gives the bank time to get the requisite notes (or call the appropriate law enforcement agency).

logifail 4y ago
> A depositor might walk in and ask to withdraw more money than the bank has cash on hand. I'm sure you didn't mean it that way, but that sounds rather like an excuse for a bank to hold on to someone's money. Withdrawals don't have to be in cash, banks can issue cheques or money orders (always assuming they still exist in your jurisdiction!) If not the bank can simply pay out your balance by electronic transfer to an account you specify.
- User23 4y ago
  I was referring specifically to those rare cases where someone exercises their right to withdraw coins and Federal Reserve notes despite it being virtually always imprudent. For example here[1] is a story about a man who asked for $600,000 in cash. The bank didn't have that many coins and bills on hand and actually took considerably longer than seven days to acquire it. [1] https://www.investopedia.com/terms/n/notice-of-withdrawal.asp https://www.investopedia.com/terms/n/notice-of-withdrawal.as...