Landlord forgot to put money in custodian account

[Kthnry]

The going rate for landlord/tenant accounts at Bank of America is 0.05%. Not 5%, not 0.5%, but 0.05%. I had a tenant's $2,000 deposit in such an account for two years, and the $20 check charge to close the account was more than the interest it had earned in all that time, so I lost money on the transaction. Grumble, grumble. The 7% penalty interest rate is very generous for the tenant.

[jaymoney]

Originally Posted by Kthnry

The going rate for landlord/tenant accounts at Bank of America is 0.05%. Not 5%, not 0.5%, but 0.05%. I had a tenant's $2,000 deposit in such an account for two years, and the $20 check charge to close the account was more than the interest it had earned in all that time, so I lost money on the transaction. Grumble, grumble. The 7% penalty interest rate is very generous for the tenant.

That's why he should have just done it right the first time. Lesson learned, I hope.

A charge to close an account though? Time for you to find a local credit union.

[Kthnry]

Originally Posted by jaymoney

A charge to close an account though? Time for you to find a local credit union.

Not all banks offer landlord/tenant accounts. I tried a couple of local banks (I think TD and Valley) before going to BoA.

It wasn't a charge to close the account. It was a charge to issue the check. I could have had a suitcase full of cash for free.