Startling discovery from bankers

THE EDITOR: I was querying another account when I learnt, purely by chance, that my Money Market Fund (MMF) account at my bank was classified as dormant and was about to be deemed “inactive”. I was told that neither a withdrawal nor the credit of monthly interest keeps the account active. Only an external deposit would suffice. Once there has been no external deposit for some time the heavy hand of bureaucracy goes to work: the account is deemed inactive, monthly charges are deducted and interest credits cease. I have two concerns about this policy.

First, why can’t the banks with their much-touted, state-of-the-art, multi-million dollar computer systems warn customers before such action is taken? Secondly, why should a MMF be deemed inactive? A MMF is not a regular savings account. For many people it represents a nest-egg put aside for a rainy day, and for retirees like me, you only make withdrawals from it. The bank’s obvious response to my first concern is that it is not in their interest to warn customers. After all, they save money by not paying interest then turn around and charge the customer each month for the privilege of leaving his money in their bank — a classic win-win situation. I’ve come up with two responses to my second concern. I can either transfer my money to the Unit Trust who seem quite happy to keep it unconditionally; or I can withdraw a small sum periodically from my MMF at the bank, then promptly re-deposit it — a classic case of the bank cutting off its nose to spite its own face.

S ALI
San Fernando