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My small bank is asking that withdrawal requests over $2k be arranged for two days ahead of time. The bank rating is 'B'.
I was thinking that my money should be spread among a couple of banks, just in case (as well as some socked away at home, naturally).
So, I see Chase is rated 'C'.
I am looking at smaller banks like the one I am now in, but cannot find ratings of them anywhere.
Should I be concerned about the $2k limit? That could have been their policy all along, I don't know.
I know that Chase bought out Washington and Chase is probably in the 'too big to let fail' category - but the 'C' seems pretty sad when I am searching for an 'A'.
$2000 seems a bit low. Back in 1999-2000 I worked as a teller at a small community bank (they only had 14 branches). I had several transactions a day that were over $2,000.
However, the New York and New Jersey area has seen a significant increase in the amount of bank robberies over the past year. It's possible that they just want to limit the amount of cash inside the vault. If the robbers know this they may not target that particular bank and move on to another one.
$2,000 is an unreasonably small limit. That is less than the night drop of many of the businesses banks serve. I used to pick up change orders nearly that big, and some banks would ask for a day's notice so they could bring in enough quarters and other coins. That was reasonable. Your solution is to keep less than $2,000 in that bank and hope they don't branch out into a Taco Stand to have more cash on hand.
Deposits are insured by the FDIC so spreading your money is rarely needed.
Banks must manage cash so it is not unusual to see requests for large withdrawals be scheduled although $2000 is small enough you would think it could be accommodated pretty quickly even at a small bank... but I have seen very small branches that limit cash on hand to $3000.
Managing the cash inventory for a large bank is a big operation with a carefully managed schedule of pickups and distribution. Funds kept in cash are non-performing assets.
I recently read an article claiming that the government said there is a possibility of the FDIC running out during 2009 due to all the failures already.
$2000 seems a bit low. Back in 1999-2000 I worked as a teller at a small community bank (they only had 14 branches). I had several transactions a day that were over $2,000.
However, the New York and New Jersey area has seen a significant increase in the amount of bank robberies over the past year. It's possible that they just want to limit the amount of cash inside the vault. If the robbers know this they may not target that particular bank and move on to another one.
I recently read an article claiming that the government said there is a possibility of the FDIC running out during 2009 due to all the failures already.
And the government will just keep on doing what they continue to do. They will simply bail out the FDIC.
Last year i could pull $10k any time. It is now a stretch to get 3k.
The banks are getting people use to hearing not today, or give us a couple days, so they can control a potential run.
Only in the last couple months have i ever been questioned on my cash withdrawals and they are now warning that they won't be able to accomidate them anymore, in larger sums. It is a small bank without any subprime exposure, and survives on retirement deposits.
Have checking accounts at 2 or 3 local banks and have ATM cards for them. Then keep your money in an online savings account that you can link to your checking. Now you have good access to your money, transfers, counter and ATM. Also keep some cash on hand. Never keep all your eggs in one basket. Some of the banks that failed, I was uncomfortable with, so I electronically transfered out.
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