Bank issue and bounced direct deposit

[Catica]

Hi,

I have an account at online bank, which I haven't used probably for over a year.  Recently I decided to use it because they have a great APY. I couldn't find the debit card, so I requested a new one and received it.  I made a deposit of $50 as that's all it let me do from their side.  Then I transferred $4000 to it from my other bank and I setup direct deposit. On the day of direct deposit I got a message on my phone that my direct deposit arrived.  I tried to log in to my account and I couldn't.  I called the bank and was told that my account was closed due to inactivity.  I told the person that I just had activity and why all of the sudden the account got closed on the day of my direct deposit.  She didn't know and told me that the security department will contact me.  An hour later I was asked to provide additional info such as photo ID etc. and that I will hear back from them in 2 days. I emailed the immediately with the requested documents. At the end of the day I received a message which said that my account was closed due to inactivity and that on July 20 they emailed me a warning that if I don't fund my account by August 19 they will close my account.  I never received such email.  They did not close my account on August 19.  They closed it on the day I received my direct deposit, which was August 28. I called the bank and was told that the direct deposit was send back to the sender and that the security department will contact my on Monday about reopening my account and getting my $50 back. The $4000 was returned back to the account I sent it from.  I'm yet to hear from my employer about the returned direct deposit.  Is this something I should be concerned about or just sit tight and see what happens?  I'm really pissed about this treatment.

[nalor511]

I would be upset too, but there's really not much that will be worth your while, pursuing this account at a bank that clearly no longer wants you as a customer.

1. you got your $4k back, and they're giving your $50 back, wouldn't worry too much about that
2. your employer knows (or will know shortly) that they got your paycheck DD back, so you can follow up with them about getting it put into a different account
3. find a bank (or better, credit union) that has a competing APY, and wants you as a customer. depositaccounts.com is a good resource

[Catica]

I would be upset too, but there's really not much that will be worth your while, pursuing this account at a bank that clearly no longer wants you as a customer.

1. you got your $4k back, and they're giving your $50 back, wouldn't worry too much about that
2. your employer knows (or will know shortly) that they got your paycheck DD back, so you can follow up with them about getting it put into a different account
3. find a bank (or better, credit union) that has a competing APY, and wants you as a customer. depositaccounts.com is a good resource

Thank you. Unfortunately, no one else offers 2.8% APY, but the hassle is not worth it.  I will use another bank with lower APY.

[Proud Foot]

I'm yet to hear from my employer about the returned direct deposit.  Is this something I should be concerned about or just sit tight and see what happens?  I'm really pissed about this treatment.

Sorry to hear about the issues with your bank, I would be upset as well. I work in the accounting department and the payroll department reports to me. Like nalor511 said, your employer will know the DD got returned. Processing times for returns is not immediate through ACH and the payroll department should have been notified today that the DD was returned. Our process for returned payroll deposits is to immediately cut a live check to the employee and have it directly delivered to the employee that day if they are working and overnighted or have them come pick it up if they are not scheduled to work.