savings accounts and 7 days notice

[wax42]

I was thinking about storing some cash which I will need to be liquid in a savings account. However the terms on all savings accounts say something like "We reserve the right to require 7 days notice on any withdrawal request" (I think under federal law they must reserve this right on savings accounts). How does this work? Could it happen that on any given withdrawal request the bank says "No, sorry but you didn't give us 7 days notice"? Or will they let me know in advance before they start exercising the right that they plan to start exercising it? Basically I just don't want to end up in a situation where I don't have access to my money for 7 days. Is there a danger of that with a savings account?

[jzpiano]

Never had a problem with this myself, however my brother just a week ago did. It was a rather large sum of money and they played this card with him. He got screwed basically because there was nothing he could do about it except wait the 7 days.

[mo42nyy]

how much was he asking for

[wax42]

Thanks for the info, looks like this could be a problem then. I guess I'll use a checking account instead.

[mattnxtc]

How liquid are you talking? Why not have both a savings and checking account?

I have both and give myself enough money to make it to the next paycheck while i store the bulk of my money in an online savings account. This gives me like 1k for 2 weeks whiel the rest sits in a higher interest account making more money.

If you will never have 7 days notice before having to pay a large sum of money then go with checking..otherwise just learn to allocate your money

[jzpiano]

[ QUOTE ]
how much was he asking for

[/ QUOTE ]

Above 5 figures, not such how much, he didn't say more than that

[wax42]

[ QUOTE ]
How liquid are you talking? Why not have both a savings and checking account?

I have both and give myself enough money to make it to the next paycheck while i store the bulk of my money in an online savings account. This gives me like 1k for 2 weeks whiel the rest sits in a higher interest account making more money.

If you will never have 7 days notice before having to pay a large sum of money then go with checking..otherwise just learn to allocate your money

[/ QUOTE ]Yes this is what I plan to do. I want to have a few thousand available as quick access cash (for situations where I might need money on short notice), but with the remainder of my money it is not so critical that it can be accessed immediately. I plan to put the quick access cash in a checking account, and everything else in savings/investments.

[mo42nyy]

well if its 15-20 k that is one [censored] bank
if its close to 100 k I can see a small delay