Citigroup warns it may refuse to withdraw money to customers
As of April 1, Citigroup may not allow its customers to withdraw money from their accounts and could require an advanced notice of seven days for withdrawals.
Photo by martinrp
Citigroup Center Complex, New York City
On Friday, Citigroup sent statements to customers across the U.S. to inform them that they could be required to submit an advanced notice of seven days if they want to withdraw money from checking accounts, according to the
Business Insider.
Canada Free Press reports that the move will take effect as of April 1 of this year, “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.”
However, the
Future of Capitalism reports that the policy only applies to the state of Texas and must have been a mistake to send out the letter nationwide. Citibank then released another statement and said it moved to the unlimited FDIC coverage in 2009 and had to reclassify their checking accounts “to allow for immediate withdrawals in order to ensure all customers qualified for the additional coverage.”
The statement added that the Federal Reserve Reg D requires NOW accounts to reserve the right to require a notice of seven days to withdraw money and once again noted that Citigroup issued a warning to its customers.
Motley Fool questioned Citibank’s latest clause and stated that maybe they’re preparing for a run on the bank, or maybe an April Fool’s joke.
