Archives for September 2011

Banks aren’t as wildly profitable anymore, and thus are looking for ways to bring back the bucks. They’ve added new “features” like debit card fees, and are dropping unprofitable customers. For example, people with zero balances and little activity still cost money in the form of generating statements, 1099s, and such. Well, MMB reader Mike experienced firsthand how much Capital One Bank doesn’t like inactive checking accounts.

Even though he has biweekly direct deposits into his account, his account suddenly disappeared one day from online banking. It’s the primary fear of online-only accounts; what happens if they simply say my money doesn’t exist? After contacting them, what was the reason given for closing without notice? A $0 balance for just five consecutive days. Here are some excerpts of his exchange with customer service:

We understand you are inquiring about the status of your checking account. Your checking account ending in XXXX was closed on 08/19/2011 after an extended period with a zero balance. We apologize for any inconvenience this may cause. To have your account reactivated, please confirm you mailing address and phone number by secure message.

In regards to your question of $2,000 deposit once a month, our records indicate this last deposit made into the account was on 08/12/2011 for $2,278.44. Following this deposit on 08/12/2011 there was a withdrawal of $2,278.44, followed by a $20.00 ATM withdrawal on 08/15/2011 leaving the balance of this account at $0.00. Once the account has a zero balance for five consecutive days, it will close automatically and no longer appear in your online banking profile.

In the past, banks like EmigrantDirect also closed zero balance accounts without warning, but only after at least a month of inactivity. Watch out, banks are becoming even less friendly than before.