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The only thing you need to understand about retail banking is that the inmates are running the asylum Login/Join 
slosig
Ammoholic
posted Hide Post
quote:
Originally posted by a1abdj:
quote:
Not sure where your info comes from, but banks are required to keep 3 percent of checking account balances in reserve on hand.



I've never heard of such a thing. Perhaps you can post a link to that. That a bank branch must keep 3% of their checking account balances, in cash, inside the branch.


quote:
I walk into my bank every other month with out notice and withdraw a couple thousand dollars and no one blinks. Maybe they were hiding the money from you while you were there, but they got more than 250 dollars in the bank.


$250,000. I thought that would have been more obvious.

They aren't hiding the money when I'm there, because I'm usually in their hiding spot doing work.

I'd say they keep so little cash in the building that you could wipe out most bank branches with a banker's box.

I’m not sure what the exact number is, 2%, 3%, but it is certainly less than 10% which is required to be kept by the bank. That is how fractional reserve banking works. You deposit $100, they turn around and loan out 9x% of it to Bobby, who deposits it in his account and they turn right around and 9x% of his 9x% to someone else. They must maintain 10-x% of each deposit as reserves. However, there is no requirement to keep all of those reserves in cash. There may well be a bank that does it, but I can imagine why when they can earn interest on it. A very small fraction of their reserves are held in cash.
 
Posts: 7216 | Location: Lost, but making time. | Registered: February 23, 2011Reply With QuoteReport This Post
dsiets
Member
Picture of dsiets
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quote:
Originally posted by Rey HRH:
quote:
Originally posted by dsiets:
I USED to bank w/ 5/3rd.
At one point years ago I was laid off from work and needed to get $200 +/- into an account. I borrowed from a family member (written check) who also banked at 5/3rd, so I could meet the funds for an automatic w/drawl payment that was to occur later that day.

I walked into FU/3rd bank and explain the situation.
ME: (I explain the above)
5/3: Checks take a day or two to clear.
ME: The check is from a 5/3 account holder. You can see if they have sufficient funds.
5/3: (They basically explain that's just the way it is for all checks and they can't do anything about it.
ME: Ok, I'd like to cash this check.
5/3: Ok, (hands me the money).
ME: I'd like to deposit this money into my account. Cash posts to my account instantly right?
5/3: (Teller looks at the other teller next to her. Gets confirmation that's ok.)
ME: (blank stare right at her.)


I like that story. I can't imagine what went through the teller's mind afterwards. "Did he pull a scam on me? I'm sure he did..."

It's not my scam. It's their scam. They were nailed in a class action suit for deliberately holding transfers to which they would then penalize for insufficient funds. If you had multiple accounts, they would draw from the lowest to gain $$ from a penalty. I'm not sure if it was from an algorithm or what as I heard about after the fact even though I felt the penalty several times and had words w/ them. Since I was at a low and scraping by, they didn't give a shit about losing me.
 
Posts: 7538 | Location: MI | Registered: May 22, 2007Reply With QuoteReport This Post
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