Bank float time - frustration

[MRG]

Probably money laundering regulation.

Or written up as an audit "best practice".

 

[Tallman4123]

I recently used the mobile app Venmo to transfer funds to a friend of mine. They charge a 3% fee for use of a credit card but no charge if a debit card is used. The transfer and use of funds is immediate once accepted by both parties (of course both parties have to be signed up for the app). The transfer limit - I believe - is $3k. The app aggressively and irritatingly attempts to integrate with your Facebook account, but you can set your own privacy settings. As I recall it, Venmo was acquired by PayPal a couple years ago.

 

[JOHNNIE36]

I transfer money regularly between Ally and my regular checking acct at BOA. I discovered sometime back that if I direct BOA to send money to Ally there is a fee involved and it takes 3 day for the transaction. So, instead of doing it that way, I direct Ally to REQUEST the money from BOA. Takes two days and there is no fee involved.

 

[audreyh1]

This has nothing to do with float, but I ran into a new rule the other day at BOA, my home bank. Now you have to provide photo ID to make a cash deposit. I did not even want to know why. This was a few hundred dollars, not $10k or other large amount. Probably money laundering regulation.

Interesting. I haven't made a cash deposit there in some years.

I think a lot of money laundering goes on in my border town, so I can see them enforcing that here.

I've stood in line at the bank a few times, and always a lot of folks with cash - although if it's a Friday you see a lot of payroll related activity.

 

[audreyh1]

I transfer money regularly between Ally and my regular checking acct at BOA. I discovered sometime back that if I direct BOA to send money to Ally there is a fee involved and it takes 3 day for the transaction. So, instead of doing it that way, I direct Ally to REQUEST the money from BOA. Takes two days and there is no fee involved.

I always initiate the transaction at the online bank or brokerage to avoid fees. In my experience, when you do the deposit, once the online bank or brokerage says the funds have been received there isn't any hold.

But my BofA account never says there is a hold either even though I always initiate the ACH transfer from the online bank or brokerage. And BofA notifies me of the deposit the day after the other party initiates the ACH transfer - nice and fast. And as far as I remember the funds are immediately available.

 

[harley]

This has nothing to do with float, but I ran into a new rule the other day at BOA, my home bank. Now you have to provide photo ID to make a cash deposit. I did not even want to know why. This was a few hundred dollars, not $10k or other large amount. Probably money laundering regulation.

I doubt if it's an effective money laundering regulation. Most likely just more security theater (eg. anything to do with the TSA). I was asked for ID once when making a cash deposit. I asked for the form that would allow me to give permission to anyone wanting to make a deposit into my account. They weren't able to come up with one. Nor were they able to come up with any bank regulation or account agreement requiring said ID.

They do have a sign on the front door requiring all patrons to remove hats and sunglasses before entering. I am often wearing both, and don't remove them just for the hell of it. No one has ever said anything. Banks have become incredibly annoying, and I try to stay with local ones or CUs whenever possible.

 

[SecondCor521]

My dad deposited a six figure Fidelity check the other day at his local bank branch and they made all of it available immediately. I was very surprised.

 

[Winemaker]

I doubt if it's an effective money laundering regulation. Most likely just more security theater (eg. anything to do with the TSA). I was asked for ID once when making a cash deposit. I asked for the form that would allow me to give permission to anyone wanting to make a deposit into my account. They weren't able to come up with one. Nor were they able to come up with any bank regulation or account agreement requiring said ID.

They do have a sign on the front door requiring all patrons to remove hats and sunglasses before entering. I am often wearing both, and don't remove them just for the hell of it. No one has ever said anything. Banks have become incredibly annoying, and I try to stay with local ones or CUs whenever possible.

It has to do with the Dodd-Frank law I believe, demanding that banks know their customers. Every time I make a cash deposit from my rentals, the tellers always want to update my files. I tell 'em that there hasn't been any changes, except for dumb laws.

 

[audreyh1]

Much older than that. Know Your Customer derives from the 2001 Patriot Act

United States: Pursuant to the USA Patriot Act of 2001, the Secretary of the Treasury was required to finalize regulations before October 26, 2002 making KYC mandatory for all US banks. The related processes are required to conform to a customer identification program (CIP)

from wiki

 

[OAG]

Acct to Acct at NFCU is instantly, there is a limit ($5K or $10K), but a phone call will increase that. Same for USAA.

 

[jazz4cash]

I transfer money regularly between Ally and my regular checking acct at BOA. I discovered sometime back that if I direct BOA to send money to Ally there is a fee involved and it takes 3 day for the transaction. So, instead of doing it that way, I direct Ally to REQUEST the money from BOA. Takes two days and there is no fee involved.

I have similar setup between BOA and GSBank and I found that I could avoid transfer fees by setting up GSBank (as well as my credit union accounts) on the BOA Billpay program. BOA Billpay features a deliver by date that is very reliable.



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