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Donating Small Balances to Close

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Question: 
Are depositors allowed to have the bank give away their small deposit balances tocharity? These would be deposits less than $1.00 and we'd allow them to direct this in writing or over the phone that they want the balance given to charity? As an example say the customer calls in to inquire on their balance and we tell them it is $0.12. They say "its ok, you can keep it." What if the account goes all the way to its escheatment date and a letter is sent and the customer again says "just keep the $0.12" because they are not interested in getting or cashing a check for that. Is such thing as a goodwill GL account allowed where these funds could be placed and donated to a charity? The funds would paid to a charity periodically or when a certain amount is reached in the account.. Is there any regulation addressing this?
Answer: 

This will all depend on your State escheat laws. Why a bank would want to get involved in such an operation is beyond me. Usually, you can escheat dollar amounts under a certain amount in bulk to the State.

First published on 07/16/2023

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