Skip to content

Transfer Method for Business Into Minor Account

Answered by: 

We have a business customer that periodically transfers money from his business account to his grandchild's minor account. We are trying to explain to the tellers that they cannot do the transfer this way and they want to see it writing why it can't be done by a transfer slip and should be done by a check deposited into the minor's account. Can you direct me on where this documented and/or a reason to give them why it should not be done this way?

If it's bank policy, the tellers may ask for an underlying rule or regulation as part of their background eduction on the requirement, but I hope they aren't asking management to defend its policy to them.

Businesses come in a lot of different types. Tellers are often not in a position to know whether a give business is a sole proprietorship (in which the owner can treat the money as her own and manage (or mismanage) it as she sees fit) or an LLC, partnership or corporation (in any of which the owner doesn't have the same flexibility). A policy that calls for these transfers to be effected using a check and deposit ticket is a best business practice that protects the bank.

First published on 6/24/13

First published on 06/24/2013

Filed under: 
Filed under operations as: 

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics