Potential loophole in the banking system?

Can someone please give me some intelligent feedback on this website:
www.bankflaw.com
This website claims you can get up to 10% on your Money Market Savings
account.
I do not believe this to be 'kiting' because as the website explains: 1. you need to have the sufficient funds available in your account 2. you do not proceed with any actions until all funds are cleared with the clearing institution 3. you are not doing anything that would initially appear to be illegal (unless there are some very technical clauses that would prevent you from doing this)
Any expert opinion would be appreciated.
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kosmok101 wrote:

1) the banks listed all require large balances to get the higher interest rate. 2) even if it were true, that a deposited check is somehow earning interest at both ends during the 'hold' period, (which I doubt), moving $25K every 4 days will get someone's attention. It would look like $2M over the course of one year. Is it worth having the Feds suspect you for money laundering? 3) the incremental interest, say a full 5% on the $25K, is $1200, maybe $800 after tax. Is this worth 100 trips to the bank? A round trip to my bank is 20 minutes and $1.50 worth of gas.
JOE
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Thanks for your input Joe but my question has more to do with whether this process is actually legal. The feds can suspect you of anything but if you are not doing anything illegal then they won't punish you.
Also, there are banks that do not require large deposits and if you are incorporating these strategies into a long term investment where you can use the power of compounding interest then the impact is significant on your investment. Not only would the impact be significant on your own funds but (if this were legal) you could take out a loan, either unsecured or leveraged, and invest that way (but I don't want to get too deep into that) AND it would be well worth it to do that - again, if it were legal.
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Quantanimo Bay prison camp on line 1.

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"Intellegent feedback" please (repeated).
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btw - my last comment was in reference to PeterL's comments.
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3 days interest at 5% is about 80 dollars... I've certainly shifted maney in that sort of amount in that interest rate environment. I've never seen anything but the original $10k. Has anyone else here seen this interest? I would expect the banks to keep this float as a sort of droit de senior...
Joe Weinstein
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