Feds Spent Almost $900K To Maintain Empty Bank Accounts

Money

How does the government waste our money? Let us count the ways. Actually, I’ve lost count, but here’s one more example. They’ve blown nearly $900,000 on bank fees for empty bank accounts.

It is one of the oddest spending habits in Washington: This year, the government will spend at least $890,000 on service fees for bank accounts that are empty. At last count, Uncle Sam has 13,712 such accounts with a balance of zero.

They are supposed to be closed. But nobody has done the paperwork yet.

So even as the sequester budget cuts have begun idling workers and frustrating travelers, the government is required to pay $65 per year, per account to keep them on the books.

When my husband changed his business from a DBA to an LLC we had to open a new bank account. I kept the old account open for a few months to make sure we had funds in there for any old bills that straggled in. Once I knew we were all set I immediately had the old account closed. That’s because it’s our money we’re dealing with. It took all of five minutes – I made a quick phone call to the bank and then faxed a short letter. That was it.  It shouldn’t be that much more difficult to close these government accounts. But what do these bureaucrats care when it isn’t their money?