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.
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.