Seeking Alpha (and Business Insider) report:
Seen on a recent Citibank (C) statement: "Effective April 1, 2010, we reserve the right to require (7) days advance notice before permitting a withdrawal from all checking accounts. While we do not currently exercise this right and have not exercised it in the past, we are required by law to notify you of this change."
The writer there says that he called Citi (as did the other author over on the other site) and was told this applied "only to accounts in Texas."
Huh?
Folks, the formal name for a checking account is a demand account. It is called a demand account for the very reason that you have a right to all your money, on demand.
Now maybe there's some new law that applies only in Texas, or maybe there isn't. Who knows - or cares.
The fact of the matter is that any bank that reserves the right (whether they claim through some external cause or not) to throw up a gate on a demand account is no longer marketing demand accounts.
My checking account is such a demand account and I'll be damned if I'll have my checking money anywhere that doesn't fit that description.
In my opinion, you shouldn't either.
