Strange incident at bank

[Molly]

I stopped at my bank today to cash out a low interest paying CD so I could purchase a high yield I Bond. The assistant manager asked me why I wanted to cash out, and even though it was none of her business, I told her why as I was caught off guard. She was looking at the screen which showed a list of my other CDs (I laddered them) and asked if I was going to be cashing those out in the future too. Again, none of her business, but I was again caught off guard and said I might cash out some and leave some in.

I was a little disturbed by the whole thing. Does this mean the bank is in trouble? It's actually a small savings and loan. I have a very, very small account, a drop in the bucket, so I don't know why she was acting so disturbed.

Thoughts?

[Tybee]

I stopped at my bank today to cash out a low interest paying CD so I could purchase a high yield I Bond. The assistant manager asked me why I wanted to cash out, and even though it was none of her business, I told her why as I was caught off guard. She was looking at the screen which showed a list of my other CDs (I laddered them) and asked if I was going to be cashing those out in the future too. Again, none of her business, but I was again caught off guard and said I might cash out some and leave some in.

I was a little disturbed by the whole thing. Does this mean the bank is in trouble? It's actually a small savings and loan. I have a very, very small account, a drop in the bucket, so I don't know why she was acting so disturbed.

Thoughts?

Maybe other people are cashing out cds and they are worried about losing business. I doubt it means that the bank is in trouble.

[jp1]

As long as the bank is fdic insured it shouldn’t matter if the bank is insolvent unless you have more than $250,000 in any one account. That said, I agree that it’s odd and intrusive that the teller started questioning you like that.

[early morning]

I don't know you, molly, so please don't take offense! But some banks do try to watch out for "older" customers who may be the targets of scams to separate them from their savings, and tellers may seem a bit nosy while trying to make sure their customer seems to know what exactly they are doing in removing funds.

[KayLR]

I don't know you, molly, so please don't take offense! But some banks do try to watch out for "older" customers who may be the targets of scams to separate them from their savings, and tellers may seem a bit nosy while trying to make sure their customer seems to know what exactly they are doing in removing funds.

That's a good point. However, Molly, if there is a next time, you might be prepared with a return question, "Why do you ask?" She may tell you exactly what EM suggests.

[Molly]

Early Morning - No offense taken! I am a woman of a certain age, and after I posted this thread, that thought popped in my mind. Maybe she wanted to be sure I wasn't involved in a romance scam or sending money to a Nigerian prince!

KayLR - Thanks for the suggestion! I will ask because I really do want to know. I will be cashing out another CD next month when it comes due.

[jp1]

That's something I'd not thought of but certainly makes sense. Banks, and financial institutions generally, are expected to "know your customer" and are always looking out for indicators of fraud and other nefarious activity. Given that you are, as you say, "a woman of a certain age", concern over withdrawals would be legitimate.

[nswef]

My friend was nearly scammed of a good bit of money and her bank stalled in giving to her which resulted in her figuring out the scam. She felt so stupid and grateful to the bank.

[Simplemind]

It's a common question. In the beginning stages of my dad's dementia his account was actually flagged for them to give me (as trustee) a call if he came in by himself or with somebody else to withdraw money. He was definitely being taken advantage of and we were trying to plug the holes.

[Teacher Terry]

Yes I have read about banks actually prevent people from getting scammed.

[dado potato]

I use an online bank which routinely asks about substantial withdrawals (check one online questionnaire pops up on my PC). I believe it is related to their marketing goals. One of the alternative responses: "I found another financial institution with a higher interest rate."

As I recall, one of the responses was "I needed to pay taxes", but I don't think there was an alternative for "romancing a Nigerian Prince".

If I so desire, I can choose not to respond.

I understand that banks are required to report withdrawals over a certain amount to federal regulators. There is no expectation of privacy due to the unblinking eyes of "the war on terror" and anti-money-laundering.

[beckyliz]

In addition, banks are subject to the Bank Secrecy Act/Anti-Money Laundering laws (BSA/AML). Cash transactions over a certain amount have to be documented and they have to ask the reason (As if anyone will say, "I'm depositing all this cash from my illegal gun sales into my business account to make it look legit."). Basically, the feds make financial institutions do their documentation work for them. Suspicious Activity Reports (SARs) are reported to the FBI.

[JaneV2.0]

...

As I recall, one of the responses was "I needed to pay taxes", but I don't think there was an alternative for "romancing a Nigerian Prince".
...

By perusing FB come-ons, I have determined that the Nigerian prince scam has been replaced by pages featuring distinguished-looking gray-haired "widowers" who work as surgeons, or on oil rigs, or as surgeons on oil rigs, or as 4-star generals. Pictures of dogs, flowers, and cheesy romantic quotes abound. The more circumspect among them scrub their pages of Nigerian friends or other giveaways, but many of them don't bother. The female scammers just lead with provocative T & A shots. I'd love to know how many of them are actually female.

I met someone who lost tens of thousands of dollars to an on-line romance scammer. I was so aghast at his gullibility that I changed the subject to avoid the details. I've seen documentaries featuring victims of these scams, but I still don't understand the phenomenon. I'd loan/give reasonable amounts of money to about two people, and one of them is dead.