I recently received from my bank, a
"Consumer Deposit Agreement and Disclosures"
This is a 13 page agreement printed in 4 point type... (very tiny, less than 1/8 inch) and it literally covers the pages from edge to edge.
What to make of it? While I'm not a lawyer, the wording is a virtual TOTAL indemnification of the Bank from any and all legal action... with a final sentence that gives the procedure to opt out of binding arbitration, (which looks to give the bank a right to reject your account.)
Yeah... so what's new?... Let me suggest that I have never, ever seen a document so loaded with exclusions and penalties to the customer.
One of the minor factors concerns CD's, and penalties for early withdrawal. While today, the interest rate on a 5year CD is just over 1%... any withdrawal made within the first year results in a penalty of 365 days interest. That penalty would result in a charge to the capital amount. similar charges to lesser terms.
The most bothersome part of the agreement is the part about withdrawals of monies from any type of account. There is a long list of different kinds of delays in making available your own deposit funds, whether by check, or in some cases cash. If an account is funded by an ACH transfer from another bank, some types of withdrawals may be restricted for 45 days.
Overall, this funds availability and the Binding Arbitration (new and boilerclad beyond belief in the bank's favor) signal a new hard line.
On another newly arisen issue (not from my bank) there appears to be a new movement afloat re: banks and the availability of cash. You may do your own research on this, but it seems that deposit slips in some banks may put limits on the amount of cash you can withdraw from your own account. "Further review may result in delayed availability of this deposit". https://answers.yahoo.com/question/i...0110704AAnEIo8
That said, there seems to be a movement underway that works to influence the cash society to move toward a cashless society. Here's a "for instance"... Schwab is moving towards Money Market Funds that are based on cash value, to change these assets into bonds.
Money Market Fund Reform
Much ado about nothing? Conspiracy theory? A look back to 1931 is a measure of how a shortage of cash can affect the wealth of the nation.
Perhaps nothing more than misplaced trust, but at the very least, taking a moment to consider where our personal wealth lies, and any effect that changes to a cashless society may have on our own liquidity.