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Close Account, but Can't take it With You
Someone told me that when you are closing an account with a bank, the most that they will give you of your money is $5,000. If you have more than that at the time of closing the account, they give you some type of certified check for the remainder. Is that true? If so, can you explain to me more about that process and what it involves?
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 You have to be careful about from whom you get your information. While it may be true that a particular bank will limit the amount of cash it will give out when a customer closes an account, it's not necessarily the case with all banks, or even most of them.
A bank might impose a cash limit if it keeps only relatively small amounts of cash on hand. Paying out more than $5,000 could limit the bank's ability to meet other customer's needs until more cash can be acquired. In such cases, a bank might ask its customer to accept a bank check (a cashier's check, for example) for the balance of the account. The bank check can then be deposited at the customer's new bank, completing the transfer of his or her funds.
When you think about it, it's not really wise to carry around large amounts of cash, and a bank that limits withdrawals could actually be doing you a favor. Such limits are by no means a "norm" for banks in general. The only way to know if your bank would impose such a limit would be to ask.
Published on BankingQuestions.com 8/18/08
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