Being charged to make a deposit???

[ArkTinkerer]

Quote:

Originally Posted by audreyh1 That sounds like the solution to me. So what if you appear to be "structuring" the deposits? If you have the paper trail showing where that they come from rentals and a rental income and deposit history, you are good.

This is why you don't want to appear to be structuring deposits-

http://www.nytimes.com/2014/10/26/us...-required.html

[Likes_to_Lurk]

Worked for a Megabank for more years than I care to count. Spent 7 years in Small Business unit.

The bank is calculating the cost of deposits, checks paid, statements rendered, etc. It then computes the interest it is earning on the deposits in the account. If the income is less than the cost, it will charge you a fee. Note that if you are getting interest on the account, that will be considered a cost. All of this is typical for business accounts, regardless of the bank.

My suggestion is to visit with the small business specialist in the branch and see if that person can suggest a better strategy for your situation. If you do look at other banks, check the fee schedule carefully. Look for things like not receiving interest on the first X dollars of deposits!!

[fidler4]

Quote:

Originally Posted by ArkTinkerer This is why you don't want to appear to be structuring deposits- http://www.nytimes.com/2014/10/26/us...-required.html

I agree it doesn't matter that the source of the funds is legit if you structure your cash deposits to evade the CTR reporting requirements ($10,000 and over in cash) you are technically structuring.

https://www.law.cornell.edu/uscode/text/31/5324

Not a big fan of B of A but maybe a person who deposits a lot of cash transactions takes more of the tellers or banks employees time since they have to run the cash through the counting machine?


Sent from my TRS-80

[Chuckanut]

Dump them.

Find a good local bank, the one's that like to do business with local business people such as yourself.

[Texas Proud]

Quote:

Originally Posted by Lakewood90712 I have small business accounts with 2 banks, including b of a. even with a tiny size account. B of A kisses my butt as a "business account" Neither pay any interest , and b of a charges only a check image fee $2.00 mo. No min. balance requirement. IMO, B of A treats non-business customers with indifference. The other bank offers "analyzed business checking " that pays interest. Light bulb just came on, they pay interest then analyze how to take it back.

Ding, ding, ding, ding....

Yep, you would get a deposit credit for the amount of cash you had in the account for the month... back when interest rates were higher that usually covered the analysis fee... you really had to do a lot of transactions in order to get charges...

The last firm I worked at had an account with Wells Fargo... we paid about $100 to $120 per month in fees... we did about 50 or so checks a month... we did 20 to 30 deposits... had online access and a deposit machine at our office... so yes, it is now easy to get charges....

The fee that got me riled up was when our balance was too large!!! The company received a lot of cash at the beginning of the year... We went over $1 million in the bank and they charged us over $1,000 to have it on deposit... not sure, but I think the FED was requiring some kind of reserve on large balances and they were passing it on to their customers... never let it get that large again....

[audreyh1]

Quote:

Originally Posted by ArkTinkerer This is why you don't want to appear to be structuring deposits- http://www.nytimes.com/2014/10/26/us...-required.html

Wow - nasty! Well at least the IRS has suspended the practice. But a lot of other law enforcement agencies are trolling for the opportunity to seize.

Anyone who receives large amounts of cash needs to be aware of this.

Sounds like you need a new bank.

[brewer12345]

Quote:

Originally Posted by ArkTinkerer This is why you don't want to appear to be structuring deposits- http://www.nytimes.com/2014/10/26/us...-required.html

You don't have a shoe box or mason jar handy?

[gauss]

Bank of America <= Bank of Italy (read the history here folks)

Ask them if they will reverse the fee in that you were unaware of that particular fee. Advise them that you will be sure to conduct your banking business such that you will not trigger that fee again and that this will be a one time request.

Then either find a new bank, or otherwise stay with them but with the knowledge of that nasty fee waiting to get you.

-gauss

[martyb]

Oh hell no!

Sent from my SAMSUNG-SM-G900A using Early Retirement Forum mobile app

[Totoro]

Anecdote: I used to have an account with a bank that charged for closing an account.

Lucky for me I knew about it upfront. So when the interest came in, I cleared the account first (before internet banking).

Then went there to next day to close it. Lady looked at me and said: there is a fee for closing the account. I said: good luck with that (in a nice way).

Fee was waived ..

[Walt34]

DW had (note past tense) an account with BofA before we were married. Closed it and took her business elsewhere because of high fees.

Business account or no, that's outlandish. I'd close the account(s) and take my business elsewhere.

[travelover]

Quote:

Originally Posted by Totoro Anecdote: I used to have an account with a bank that charged for closing an account. Lucky for me I knew about it upfront. So when the interest came in, I cleared the account first (before internet banking). Then went there to next day to close it. Lady looked at me and said: there is a fee for closing the account. I said: good luck with that (in a nice way). Fee was waived ..

I did the same with a joint account where the second party had died. They told me I couldn't close the account, so I emptied it.

[Ally]

At our workplace, where we do not use BoA, the national bank we previously used tried to do this. Since we take in lots of cash payments daily, our board complained immediately and threatened to pull out, so they stopped and refunded what they had charged. This was several years ago and that bank was bought out by BBVA Compass. They haven't tried it.

[audreyh1]

Quote:

Originally Posted by gauss Bank of America <= Bank of Italy (read the history here folks) Ask them if they will reverse the fee in that you were unaware of that particular fee. Advise them that you will be sure to conduct your banking business such that you will not trigger that fee again and that this will be a one time request. Then either find a new bank, or otherwise stay with them but with the knowledge of that nasty fee waiting to get you. -gauss

Sounds like you are better off not trying to avoid the fee. Just switch banks.

[harley]

Quote:

Originally Posted by audreyh1 That sounds like the solution to me. So what if you appear to be "structuring" the deposits? If you have the paper trail showing where that they come from rentals and a rental income and deposit history, you are good.

Hopefully you are right, and this statement from the IRS seems to support that. However, there are still ridiculous cases that are being brought against innocent people, that even if they are dropped eventually cost a ton of time and money. Not saying don't do it, just don't count on the government to do the right thing.

Edit: I see ArtTinkerer already pointed to one of these cases, but there are others. I hope the IRS really does stop targeting people as they say they will. But I'll believe it when I don't see it.

[audreyh1]

Quote:

Originally Posted by harley Hopefully you are right, and this statement from the IRS seems to support that. However, there are still ridiculous cases that are being brought against innocent people, that even if they are dropped eventually cost a ton of time and money. Not saying don't do it, just don't count on the government to do the right thing. Edit: I see ArtTinkerer already pointed to one of these cases, but there are others. I hope the IRS really does stop targeting people as they say they will. But I'll believe it when I don't see it.

I saw that. It's just horrifying. Even if the IRS has stopped, it looks like too many other law enforcement agencies are looking for a piece of forfeiture and pursuing non-criminals. Extortion, really. Horrible!

[growing_older]

Structuring deposits is itself technically illegal, and although you might feel okay because the sources of the funds is all legitimate, remember you are going to have to argue that with the IRS, any bank regulator who objects to your structuring, misc law enforcement agencies and the same bank that wants to charge you a fee for depositing cash. Not a pretty prospect.

If this happened to me, I'd try to talk the branch manager out of this crazy fee, then if unsuccessful would be moving to another bank. There are lots of banks and credit unions.

[MikeP]

Quote:

Originally Posted by Chuckanut Dump them. Find a good local bank, the one's that like to do business with local business people such as yourself.

here here! One thing in the UK we don't have is local banks so we don't have this option otherwise i would be doing it.

[ArkTinkerer]

Changing banks this afternoon. No its not going to BofA! Nearby and has a safe deposit box. You can bet I'll go over the fine print about fees! I expect that paperwork to open an account will soon approach that of purchasing a house!

A little more on structuring--though this is about withdrawls. Seems they now want to monitor
withdrawals of $5K even though the law is $10K....Government Orders Banks to Call the Cops When Customers Withdraw $5,000 or More | The Free Thought Project

[KiraC]

We used BoA a long time ago but closed the account when we moved. We had to pay a fee to close our account. We will never even consider them again.