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?
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.
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.
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?
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?
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):
wikipedia gives a little more clarity:
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.
The Feds don't want you to know the limitations on withdrawals before a SAR (Suspicious Activities Report) is executed on your account. Only the bank or CU employees know, but they are forbidden by law to tell you (and could be severely charged if they did – so don't ask). Obviously the Feds want to know what you are doing and knowing the rules could allow you to end run their surveillance – therefore the secrecy. I have heard elsewhere that if you withdraw over 3K you will have a SAR issued – but I don't know for sure.
Also be aware that withdrawing cash in smaller amounts designed to get around the limits reporting is a crime called structuring. Therefore, if the Feds/bank/CU see a pattern then you may be charged with structuring and prosecuted for such. The prosecution does not have to "prove" that your intent was to structure, they simply have to show a pattern (however that is defined which is another secret). In the old days the prosecution had to show that you intended to commit a crime – now they simply have to show that you committed the crime (breaking regulations) whether you intended to or not. That is why you have the common saying today that everyone commits (unknowingly) three felonies per day. Welcome to 1984.
Wasn't aware of Armstrong Economics — thanks for the info.
Food for thought: When whatever is coming finally does hit the fan, I'm thinking that money, cash in particular, won't be much help. Silver or gold would probably go further but then again, if there is nothing on the shelves, either way, it doesn't matter. Stocking your shelves may matter more. Moving to communities that have their own currency may be the best. Troy, NY for one. I think their currency is the Troy Minute, but I'm not sure. These communities that have grown their own economy and are almost, if not completely self sufficient, is the better choice. There are a few in NY and they are all over the world. Check it out.