Your bank might ask you why you want 400K in cash versus a wire transfer or some other mechanism, but it's not "to approve of your reasoning". They might require some time to physically bring $400,000 in cash to the branch you're at.
I could, perhaps, see them wanting to be cautious if you appear to be having an obvious mental health crisis (but even then, as a paramedic I've heard more than one tale of families ruined by the spending of someone who was unmedicated and bipolar).
I could even potentially see there being a law enforcement issue of creating a panic or riot, exaggerated for example: "I'm going to take this money and throw it on the tracks at a train station and people can see how much risk they're willing to take to get it".
But "you have to give us an acceptable reason"? No. I am of comfortable but not exorbitant means (lower six digit salary), and my cash withdrawal limit, by default, is $15K/day. And the one time I asked for that to be raised temporarily, the only questions I got were for an additional piece of identification, and that they were able to call the contact numbers they had for me on my account to verify that it was me who picked up the call. Not "for what purpose, sir?"
i guarantee you it was a stock transfer, that's where the real tax write-offs come in.
you give a $200k donation, get a $200k writeoff, saves you about 50% (100K) in taxes you owe, so it's like the government is kicking in $100k and you are kicking in $100k and whatever the govt would otherwise spend the $100K on goes unfunded.
It's the norm in the US (and pretty much everywhere else with well-implemented developed financial infrastructure) for banks to apply extra scrutiny and roadblocks to large withdrawals. There's a patio11 article going over some of the reasons [0], but it notably generates paperwork for the bank reporting the withdrawal to the government and enables a lot of fraud to allow immediate access.
Banks try to avoid holding excessive amounts of cash in suburban branches because it makes them attractive armed robbery targets. If you have a need for a large amount of cash, you can let them know (my bank says 24-48 hours in advance), go to multiple branches, or to a large city branch. Inconvenient, perhaps, though temporary. If it's for a business or a recurring need your bank is generally happy to make that part of their regular logistics, "Monday's cash delivery needs X because asimovDev regularly wants $50,000 in cash every Wednesday".
> it has to be approved
I'm not sure what you mean by this, but I don't think it's "approved" in the sense of the bank deciding if you're allowed to do so. But hmm: multiple ID checks, or a specific seniority of bank employee doing the check. Or if you decide you want to take out $250,000 and you have to do it in cash, they might a) want a day or two to physically acquire the cash, and/or b) have additional security due to their insurance policy. They certainly might try to suggest you look at a cashier's check or wire transfer or other instrument to do so. There's going to be a CAR for any transaction involving more than $10,000 in cash.
But I'd challenge the assertion that the bank tells you you're "not allowed" to withdraw "large amounts of cash" from an otherwise unencumbered bank account.
Just call your dedicated wealth manager.
Your bank might ask you why you want 400K in cash versus a wire transfer or some other mechanism, but it's not "to approve of your reasoning". They might require some time to physically bring $400,000 in cash to the branch you're at.
I could, perhaps, see them wanting to be cautious if you appear to be having an obvious mental health crisis (but even then, as a paramedic I've heard more than one tale of families ruined by the spending of someone who was unmedicated and bipolar).
I could even potentially see there being a law enforcement issue of creating a panic or riot, exaggerated for example: "I'm going to take this money and throw it on the tracks at a train station and people can see how much risk they're willing to take to get it".
But "you have to give us an acceptable reason"? No. I am of comfortable but not exorbitant means (lower six digit salary), and my cash withdrawal limit, by default, is $15K/day. And the one time I asked for that to be raised temporarily, the only questions I got were for an additional piece of identification, and that they were able to call the contact numbers they had for me on my account to verify that it was me who picked up the call. Not "for what purpose, sir?"
Maybe it was a bank transfer.
i guarantee you it was a stock transfer, that's where the real tax write-offs come in.
you give a $200k donation, get a $200k writeoff, saves you about 50% (100K) in taxes you owe, so it's like the government is kicking in $100k and you are kicking in $100k and whatever the govt would otherwise spend the $100K on goes unfunded.
Those are limited to $25k/day for my current bank. Are those not limited elsewhere?
That's only a default limit. You can talk to your bank to allow more, e.g. for buying a house or a car.
¯\_(ツ)_/¯ maybe he paid with a Centurion Card! Who knows.
No.
your bank owns your money?
It's the norm in the US (and pretty much everywhere else with well-implemented developed financial infrastructure) for banks to apply extra scrutiny and roadblocks to large withdrawals. There's a patio11 article going over some of the reasons [0], but it notably generates paperwork for the bank reporting the withdrawal to the government and enables a lot of fraud to allow immediate access.
[0] https://www.bitsaboutmoney.com/archive/two-americas-one-bank...
Think of it less as "the bank owns your money" and more "the government likes to watch large cash flows moving around".
yes, I have to apply in advance if I want to withdraw large amounts of cash and it has to be approved.
This is more 'multi-factor authentication' than deciding what you can spend your money on
> I have to apply in advance
Banks try to avoid holding excessive amounts of cash in suburban branches because it makes them attractive armed robbery targets. If you have a need for a large amount of cash, you can let them know (my bank says 24-48 hours in advance), go to multiple branches, or to a large city branch. Inconvenient, perhaps, though temporary. If it's for a business or a recurring need your bank is generally happy to make that part of their regular logistics, "Monday's cash delivery needs X because asimovDev regularly wants $50,000 in cash every Wednesday".
> it has to be approved
I'm not sure what you mean by this, but I don't think it's "approved" in the sense of the bank deciding if you're allowed to do so. But hmm: multiple ID checks, or a specific seniority of bank employee doing the check. Or if you decide you want to take out $250,000 and you have to do it in cash, they might a) want a day or two to physically acquire the cash, and/or b) have additional security due to their insurance policy. They certainly might try to suggest you look at a cashier's check or wire transfer or other instrument to do so. There's going to be a CAR for any transaction involving more than $10,000 in cash.
But I'd challenge the assertion that the bank tells you you're "not allowed" to withdraw "large amounts of cash" from an otherwise unencumbered bank account.