7 days advance notice

AuntPeggy

AuntPeggy

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I just got this on my checking account statement from Citibank
Effective April 1, 2010, we reserve the right to require (7) days advance notice before permitting a withdrawal from all checking accounts. While we do not currently exercise the right and have not exercised it in the past, we are required by law to notify you of this change.
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I just wonder what this means. Do I have to tell them a week before writing checks? Is this going to turn out to be some other way to get money from me? Are other banks doing this? Am I getting to be paranoid?
 
April Fools Joke? I did not see it on my TD checking account.
 
AuntPeggy said:
I just got this on my checking account statement from CitibankI just wonder what this means. Do I have to tell them a week before writing checks? Is this going to turn out to be some other way to get money from me? Are other banks doing this? Am I getting to be paranoid?
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At the moment this is CitiBank only. Basically, they want to prevent you from going into the bank to withdraw a whole bunch at once, I would figure to prevent a bank run.
 
What it tells me is they aren't keeping things liquid enough, and that if there was a run on the banks, they need this clause to give them time to get cash on hand to satisfy withdrawal requests. The actual statement says it applies "to all checking, savings, and money market fund accounts".
 
I'd be shorting Citi if they think they need to do this to prevent a run...if I had money in Citi, it'd be out on or before March 31!
 
I'd sent Citibank a notice saying effective March 31, 2010, I will be withdrawing all of the money from my account.
 
IT's an emergency proviso, sort of a belts and suspenders proviso in case things do go to hell in a handbasket. My thought is that the lawyers were sitting around and said, "Sheesh, that was kinda close back in '08. What say we put in some language to let us halt withdrawals without having to wait for the gov't to do it for us. You know, just in case."

Don't think another bank will be much better. In a panic, the gov could/would shut all the banks. That's what happened to the credit union system in Rhode Island.

Always keep some walking-around cash in the house, just in case.
 
Mh Citi is out of money it seems.

I guess their monthly goverment corporate welfare cheque hasn't arrived.
 
AuntPeggy said:
I just got this on my checking account statement from CitibankI just wonder what this means. Do I have to tell them a week before writing checks? Is this going to turn out to be some other way to get money from me? Are other banks doing this? Am I getting to be paranoid?
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I'll tell you what it would mean to me, it would mean I'd give them 7 days notice that I was closing all my accounts there and going somewhere else.
 
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