Update on withdrawing cash from credit union or bank

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JandE's picture
JandE
Status: Member (Offline)
Joined: Jan 24 2017
Posts: 3
Update on withdrawing cash from credit union or bank

I would like some specifics on how often and how much to withdraw from my credit union for my emergency stash, but would like to know if big banks and community banks all have the same guidelines. I can't find any specifics on the website about this, and given we have a new administration, rules and policies can change.

What are the latest recommendations?

Andrewbradnan's picture
Andrewbradnan
Status: Member (Offline)
Joined: Oct 31 2012
Posts: 1
My CU limits you to 5,000 per

My CU limits you to 5,000 per branch, per day.  You will learn another reason they call it a bank run as you run around the city.

Anyone ever tried a casino?  Seems like a steathy way to get a bunch of cash.

Madbutcher's picture
Madbutcher
Status: Member (Offline)
Joined: Dec 16 2016
Posts: 3
Cash

Make sure you've got enough cash on hand for about 2 months worth of frugal living and a pantry that is full at all times. If the shit hits the fan the price of daily essentials will go through the roof if you could even get your hands on them. That's where most of your money would be spent so make sure you've got that sorted. Look at Greece, Cypress and the last US bank closures and consider how long they were. Take the average it lasted for and double it. That's how much money you'll need to get through. Enough to last you that period of expenses.

JandE's picture
JandE
Status: Member (Offline)
Joined: Jan 24 2017
Posts: 3
CUs

I have a pretty high limit as well at my CU -- my question is wondering at what point they get erroneously suspicious and perhaps flag your account. Is it better to go in less frequently with larger withdrawals or more frequently (several times a week) with smaller withdrawals? Any ideas?

JandE's picture
JandE
Status: Member (Offline)
Joined: Jan 24 2017
Posts: 3
Pantry

Great feedback, working on that now, especially doubling your estimates. I'm mostly concerned about bank withdrawals so we don't get flagged for no good reason. More often and lower amounts or less often and higher amounts?

reflector's picture
reflector
Status: Silver Member (Offline)
Joined: Aug 20 2011
Posts: 236
banks

JandE wrote:

I would like some specifics on how often and how much to withdraw from my credit union for my emergency stash, but would like to know if big banks and community banks all have the same guidelines. I can't find any specifics on the website about this, and given we have a new administration, rules and policies can change.

What are the latest recommendations?

all financial institutions, whether big commercial banks, local banks, credit unions, or others, are all under the same federal KYC/AML guidelines.

however, those guidelines are vague and tend to be capriciously applied, so the results can be different from one bank to another, and even within a bank, you will get different results between one branch and another.

you can review this hot mess for yourself published on ffiec.gov (warning! not for those with weak stomachs):
https://www.ffiec.gov/bsa_aml_infobase/pages_manual/OLM_015.htm

wikipedia gives a little more clarity:
https://en.wikipedia.org/wiki/Suspicious_activity_report

basically, the government wants your bank to report you if you take out more than $10k in cash at a time (or multiple transactions within 1 business day, so for example taking out $6k in cash saturday and $7k on monday = $13k within 1 business day).

and also to report on you for other "suspicious" activity, which is not clearly defined.

and also your bank won't tell you when they file an SAR on you, and it would in fact be a crime for them to do so.

yes, people are being treated as criminals for taking out their own money from the bank.

though, technically, when you deposit money in a bank, it is no longer your money, it is the bank's money, and you become an unsecured creditor.

i don't trust banks to hold any significant amount of savings, they are untrustworthy and unstable institutions, and more importantly, i know they are not on my side.

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