| Need help choosing bank account options for small business |
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NELC
New Poster
Cash: $ 0.45
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Joined: 06 Nov 2011
Location: Mississauga
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| Need help choosing bank account options for small business |
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Me and my friend are two 18 year olds and we've opened a small lawn care business this past spring. After each month, we'd deposit about 2200 dollars (half in cash half in cheques), into MY personal savings account, and then, Id transfer half of the total sum to his savings account - all of this with a bank teller.
After being accused of putting the bank at legal risk, and just being flat out told that we weren't allowed to do this anymore by the bank manager this past week, I need a new method of dealing our money.
I'm kinda frustrated because were closing up business this season and I also have a full university course load on my shoulders, and I'm having trouble finding the time to research my options.
Any thoughts?
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Sun Nov 06, 2011 3:22 am |
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coaster
Senior Advisor
Cash: $ 1357.20
Posts: 6683
Joined: 11 Oct 2005
Location: Wisconsin
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This is the biggest bunch of bullshit I've ever heard. You're a legal adult. Your money is yours to do with as your wish. What you describe doing isn't against any laws or banking regulations. There is no risk to the bank. The bank is obligated to transfer your funds to any account you so choose. Either the bank manager is feeding you the biggest line of horse hockey I've ever heard of a bank manager feed, or there must be some relevant details missing that change the circumstances 180 degrees. If all is as you say it is, I suggest you withdraw your money from this bank, and open an account at another bank. I suggest you do this via an ACH bank to bank, account to account transfer to avoid account closing fees. Once the first account is defunded, then any minimum balance or account closing fees they may wish to assess will have been rendered moot. Don't write a check for the balance, because then they can deduct their fees. If you defund the account with an ACH they can't deduct anything because the amount of the transfer is determined by the receiving institution (the jargon used is "pull") and if there are sufficient funds in the account when the pull is received it has to be done for that amount. Whereas if you write a check for the amount, they can assess their fees and then, bingo, there's insufficient funds and they don't have to honor the check, and your money is still there (what's left of it).
Learn to make the system, and the rules the system operates under, work FOR you. 
~Tim~
Eye Candy : Why Whimsy
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Sun Nov 06, 2011 7:29 am |
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oldguy
Senior Member
Cash: $ 309.10
Posts: 1480
Joined: 21 May 2006
Location: arizona
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If a bank jerked me around like that, I would change banks in a heartbeat, you don't need the hassle. Does Canada have Credit Unions? In the US, there is a public movement this week to punsish banks by moving to the credit unions.
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Sun Nov 06, 2011 1:31 pm |
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coaster
Senior Advisor
Cash: $ 1357.20
Posts: 6683
Joined: 11 Oct 2005
Location: Wisconsin
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quote:
Originally posted by oldguy
...there is a public movement this week to punsish banks by moving to the credit unions.
I'm all for credit unions; not to punish banks; I just can't resist putting my money where it gets a better return, and I have better service to boot.
~Tim~
Eye Candy : Why Whimsy
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Mon Nov 07, 2011 5:31 am |
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NELC
New Poster
Cash: $ 0.45
Posts: 2
Joined: 06 Nov 2011
Location: Mississauga
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Yea guys I've talked around with relatives and friends parents that work in banks and they all say that this bank manager was probably suspicious of our activities. The lady probably thought we were laundering drug money or something. Anyways they couldn't think of why its illegal either so i plan on returning to the manager and asking for clearly written explicit rules to why its illegal.
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Thu Nov 10, 2011 3:41 am |
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