Dormant Bank Accounts

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Oak&Elm
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Joined: Wed Mar 18, 2015 7:50 pm

Dormant Bank Accounts

Post by Oak&Elm » Sun Nov 19, 2017 10:20 am

I'm in the process of reevaluating my bank accounts used primarily for holding my emergency funds. I currently have 3 online banks:

Ally savings/ 1.25% on all amounts, also have a couple 11 month no penalty CD's
PurePoint savings/ 1.40% if you hold more than $10k
All America money market/ 1.50% on first $35k.

Would it make sense to consolidate and use only one of these banks or maybe two? If so would you closeout the dormant banks or just leave them empty in case you might want to use them again someday? I typically like to have about $85K available for my EM fund. I realize I could buy a 1 year CD paying 1.65% at Ally or GS as well. Maybe I'm over thinking this, no matter which route I choose this only amounts to $100/year either way.

livesoft
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Re: Dormant Bank Accounts

Post by livesoft » Sun Nov 19, 2017 10:27 am

I had a dormant bank account at USAA closed. At first, USAA said the money was escheated to the State as per dormant account rules, but they lied to me.

We have none of these savings account things, so we have put that fact in notes to our wills, so that our potential heirs don't waste time looking for accounts when we die.
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Oak&Elm
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Re: Dormant Bank Accounts

Post by Oak&Elm » Sun Nov 19, 2017 10:39 am

As I re-read my own post the lights came on, if I were to:
*liquidate Purepoint
*Open a 2nd All America mma taking my total to $70k at 1.50% (one for me and one for wife)
*Keep my Ally account and just purchase one $25k CD at 1.65%
This would mean I would have no money earning less than 1.50% at anytime. So back to the question, what do I do with PurePoint, close it out or just keep it open in the event they have a better rate in a few months, PurePoint has been outstanding IMHO.

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flamesabers
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Re: Dormant Bank Accounts

Post by flamesabers » Mon Nov 20, 2017 2:42 pm

Oak&Elm wrote:
Sun Nov 19, 2017 10:20 am
If so would you closeout the dormant banks or just leave them empty in case you might want to use them again someday?
You may want to double check with these banks, but I think normally banks don't keep accounts with a zero balance open very long. If you're not going to do business with a bank for the foreseeable future, I would say close the accounts you don't need.

Karamatsu
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Re: Dormant Bank Accounts

Post by Karamatsu » Tue Nov 21, 2017 7:02 pm

I don't see any advantage to keeping an account that has no balance. There is some value in dividing your cash, in case one bank runs into trouble (financial or operational/technical) and becomes inaccessible for a time. Just make sure that any bank where you intend to "park" cash doesn't have an inactivity fee, and check now and then to make sure that they haven't instituted one.

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