> Regular savings account banks do typically do this, for example the bank has the right to ask for 7 days to honor a withdrawal

Source?

I'm familiar with savings accounts described as "instant access" or "easy access" where you can get your money out whenever you feel like it.

Unless the bank actually markets an account as a "notice account", can they really ask for 7 days notice?

Here is an example: https://www.capitalone.com/bank/disclosures/savings-accounts...

> Advance Notice of Withdrawal: Under federal law, we must reserve the right to require you to give us at least 7 days written notice before you take money out of your 360 Savings. (This hardly ever happens but legally we have to say it!)

> Here is an example [..]

Interesting, and this appears to be federally-mandated. Wow.

Are there other jurisdictions where this kind of rule exists?

I used to have savings accounts with similar terms in the UK. They have a higher interest rate.

https://www.moneysavingexpert.com/savings/savings-accounts-b...

Sure, I understand the general principle of locking up your investment for longer and [perhaps] getting better conditions, but the notice periods on those accounts aren't government-mandated, though?

Sort of - to the FDIC, the difference between a savings account and a checking account is that a checking account is a "demand deposit" account that historically didn't pay interest and a savings account is a "time deposit" that does. Capital One is telling you that this savings account is a time deposit to legally categorize it as different from a demand deposit so the FDIC treats them as two separate categories and gives them both the $250,000 deposit insurance. It's federal law that requires them to delineate the two.

Of course. A depositor might walk in and ask to withdraw more money than the bank has cash on hand. The seven days gives the bank time to get the requisite notes (or call the appropriate law enforcement agency).

> A depositor might walk in and ask to withdraw more money than the bank has cash on hand.

I'm sure you didn't mean it that way, but that sounds rather like an excuse for a bank to hold on to someone's money. Withdrawals don't have to be in cash, banks can issue cheques or money orders (always assuming they still exist in your jurisdiction!) If not the bank can simply pay out your balance by electronic transfer to an account you specify.

I was referring specifically to those rare cases where someone exercises their right to withdraw coins and Federal Reserve notes despite it being virtually always imprudent. For example here[1] is a story about a man who asked for $600,000 in cash. The bank didn't have that many coins and bills on hand and actually took considerably longer than seven days to acquire it.

[1] https://www.investopedia.com/terms/n/notice-of-withdrawal.as...

> If you are tether and your asserts are in bonds that mature in under N days, then you could just promise redemption within N days to eliminate bank run risk.

I don't think that's reasonable for Tether, at least not with a bulletproof N. I can't quickly find any specific redemption guarantee, but their March reserves report notes that their US Treasuries (the largest single claimed category) can have maturities up to 120 days. The commercial paper category claims an average duration of 44 days.

Agreed, I think N would have to be too high to depend on this entirely, and high N looks a lot like insolvency. But it could still buffer against a partial bank run.