This instance is less important, but this time we also include a comparison to another bank.
Some 12-15 years ago I purchased some state of Illinois bonds from First Chicago (now JP Morgan Chase). At some point, they sold the rights to service some of these bonds to US Bank in Minnesota. Two bonds matured this year on the same day, August 1, one from JP Morgan Chase and the other from US Bank.
I mailed them both, registered, on Friday July 28.
I mailed one to US Bank in St. Paul, MN. I received a check Wednesday, August 2, which is as soon as it would be possible to receive a check. That's good service.
I mailed the other to JP Morgan Chase in Chicago. I just received the check today, August 7th -- 5 days later. Where has this check been? It's been on a long tour. I mailed the bond to Chicago. The check was issued in Dallas. The check was mailed from zip code 35210, somewhere in Alabama.
The net effect of this cross-country tour is that a bond that should have been paid out August 1 gets paid out August 8th -- one week later (since the banks are already closed tonight -- it won't be credited until tomorrow even if I use an ATM).
This is called cash flow management. I know what it's called, but I don't have to like it.
Earlier installments of this series:
http://journals.aol.com/mikekr/ZbicyclistsZlog/entries/750
The obvious question is: when am I going to move banks? It's a pain to move an account -- especially one with several automated payments. So, I only want to do it once. The nearest US Bank branch is 3.5 miles away, which is possible. Maybe I've found a candidate.
No comments:
Post a Comment