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Tuesday, August 1, 2017

Racing the bank



One of my banks decided to a complete shutdown of their on-line banking on the last day of the month. That's when a lot of people get paid. I know I do. There was a narrow window between when my money was deposited and when they were shutting down the service. I quickly logged on and transferred my funds to where they needed to go.

Now I could have driven into town and walked into the bank and gotten a wad of bills. Then I'd drive all over town doing my business, just like in the days of the pioneers. Okay, that's doable, but a royal pain.

I happened to be local, so at least I could have done it. The problem is that I just as easily could have been two thousand miles away from the nearest branch of my bank. Having my funds locked up while away is no fun at all. It's happened before when my debit card was deemed to be fraudulent, for no known reason whatsoever. No matter how had I tried and how often the bank assured me the problem was fixed, it wasn't fixed.. Fortunately, my lovely wife's debit card, on the very same account, worked fine.

The obvious solution is to travel with a significant amount of cash. The problem with that is you stand a good chance of getting robbed, by the police. In many jurisdictions they confiscate cash as evidence of illegal activity. Good luck on ever getting it back.

Okay, these may seem like minor inconveniences to some people. For me they are red flags. When a country's financial system is falling apart, one of the things they do is currency controls. They make it much harder to move money around. They make it especially hard to move money out of the country.

Do I think this is the start of currency collapse? Probably not. However, it's one of those things you look for. On a practical level, I've the annoying problem of how I'm going to keep my bills paid when traveling.

-Sixbears

9 comments:

  1. Replies
    1. Nope. By the way, the system is down for longer than first promised.

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  2. I read a story this morning of EU banks thinking of creating the ability to freeze private accounts just in case there is a bank run. It makes you wonder who the bank believes that money belongs to. ???

    I prefer to have the personal cash stash for peace of mind. No question of validity when spending (well, the pen DOES often get pulled out for testing), but nothing like a personal check from a long distance.

    I hope you find a solution that works for you.

    ReplyDelete
    Replies
    1. Funds are frozen all over the world all the time. We probably aren't any different.

      As of noon the bank is still off-lien.

      Delete
  3. Nothing wrong with a mason jar full of bills buried in the back yard.

    ReplyDelete
    Replies
    1. Might as well. It's not like the banks pay interest anymore.

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  4. Well, that's a pain in the arse. Definitely NOT a minor inconvenience. None of those business whom you owed would have blinked to charge you for late payment if you couldn't access your money.

    ReplyDelete
    Replies
    1. You got that right. None of my creditors would have cut me any slack.

      When this bank first bought out the local bank, they screwed up and froze all debit and credit cards accidentally. Not a smooth transfer. Shut down much of the town's business. The wife of a bank director had her card shut down at a fancy clothing store and was not impressed.

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  5. This comment has been removed by a blog administrator.

    ReplyDelete