I am not an expert, but I think you’re confusing reserves with the fed, with reserves for potential loan losses. They want to disaggregate the checking and savings accounts because one account requires them to post more non-interest earning assets at the Fed. Making this change will allow them to put more of the assets to work earning money.
I understand fractional reserve banking reasonably well, and still find this disturbing. I’ve got the majority of my personal, readily available cash reserves with this particular CU.
I still wouldn’t like it, but would be less alarmed if this is across the board, for all Federal Credit Unions.
Has anyone else received similar notification?