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Million Dollars In A Chase Savings Account?

Tuesday, April 23, 2013 - 7:06 AM
Someone with over a $1 million in a Chase savings account forgot to take his/her ATM receipt. This Business Insider article shows a photo of this receipt next to another ATM receipt showing an insufficient funds message for a $100 withdrawal. The article focuses on income inequality, but I found this interesting in that this person is losing out on a lot of interest by keeping that money at Chase. If that million was at an internet bank earning 1%, he or she could be making about $10,000 more of interest per year.
7
Ken TuminKen Tumin5,472 posts since
Nov 29, 2009
Rep Points: 125,708
1. Tuesday, April 23, 2013 - 7:36 AM
There are a myriad of reasons a person has over a $1 million in his/her Chase savings account. Among them could be that the funds are deposited there temporarily awaiting transfer to a brokerage account or a pending large real estate transaction. Some wealthy individuals, or couples, just don't want to pay additional income taxes, especially in New York City, and are satisfied with extremely low yielding deposit accounts. Regardless, the main worry in maintaining such a high balance in a savings account is that it exceeds the FDIC insurance limit. Of course, there are ways to get around that through joint accounts. “Depending on the circumstances, a family of four could have well over $1 million indeposit insurance coverage at the same bank,” according to James Williams, an FDIC Consumer Affairs Specialist.

As you posted Ken, "The article focuses on income inequality", thus the individual who has insufficient funds in his/her Chase account is on the bottom-end of the equation. That's life in New York City, where people with absolutely nothing in financial assets walk daily in front of high-rise apartment buildings where multi-millionaires reside.
5
ShorebreakShorebreak2,694 posts since
Apr 6, 2010
Rep Points: 14,610
2. Tuesday, April 23, 2013 - 7:51 AM
Maybe they know they are going to konk off and they are hiding it from relatives.  The "last" place I would think of looking for a million dollars is in a Chase account with their stinky interest rates! :)
4
paoli2paoli21,406 posts since
Aug 10, 2011
Rep Points: 6,150
3. Wednesday, April 24, 2013 - 4:01 PM
It is interesting to note that the 1-Million person tried to get cash advance from her/his credit card and was denied.  It shows that she/he may not have a good credit, either.

It reminded me of a friend's true story: An old person walked into a BofA branch in Newton, Mass. and requested a cash withdrawal of $100 from his checking account.  The bank clerk told him that you did not have sufficient fund for that in your account.  The old person responded, "What do you mean that I do not have such a balance?  I have $6M in that account."  The clerk and manager checked again and were shocked (all others in the bank were stunned).  Indeed he has $6M in his account.  He was treated as a VIP, walking out of the bank.

There must be tons of folks that have earned so much money for their life time, but the only way they know is to put their money in a zero-interest checking or saving account.

That is also the partial reason why all those banks become so big and filthy rich.
2
51hh51hh1,476 posts since
Jan 16, 2010
Rep Points: 6,427
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