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Limit of 6 ACH Transfers on Savings Accounts
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There is a limit of six transfers, ACH or otherwise, per statement cycle on savings accounts as mandated by the Federal Reserve board Regulation D, which defines the rules of each account type and its reserve requirement. Why is this important? With the advent of online savings accounts and the chase for a better interest rate, ACH transfers into and out of savings accounts are becoming more frequent. Before online savings accounts like ING Direct and Emigrant Direct, when you actually had to visit a bank to initiate an ACH transfer; a limit of six transfers on a savings account wasn’t really a problem. In fact, you’d be hard pressed to initiate six in a year, let alone six within a statement month. Now, you can initiate six ACH transfers within a statement cycle without really realizing it and that can be cause to terminate your account!
The reason for this is because your savings account is classified as a “saving deposit” and the reserve requirement on a “saving deposit” is 0%, compared to something like 10% on a “transaction account.” A reserve requirement is how much of the balance the bank must keep in reserve and not give out in loans. So when Emigrant Direct gets your $1,000 in your saving account, it doesn’t need to hold any of that in its reserves, it can loan all thousand dollars because the reserve requirement on a savings account is 0%. (hence the attractive rates) On a checking account (a transaction account) however, they must retain 10% of the balance on hand because the assumption is you will be drawing on your funds more frequently.
So, why did I look this all up? Because when I was reading the Emigrant Direct’s disclosure statement (link), I stumbled upon this rule:
Federal regulations require that no more than six (6) transfers per statement cycle may be made to (1) an account at another bank or financial institution, including your External Account, (2) to another EmigrantDirect account or (3) to a third party by means of a preauthorized or automatic electronic transfer. We reserve the right to close your Account for violation of the above restriction.
This is nearly an exact copy of Section 204.2(d)(2) of Regulation D of the Federal Reserve Board’s definition of a “savings deposit:”
the depositor is permitted or authorized to make no more than six transfers and withdrawals, or a combination of such transfers and withdrawals, per calendar month or statement cycle . . . to another account (including a transaction account) of the depositor at the same institution or to a third party by means of a preauthorized or automatic transfer, or telephonic (including data transmission) agreement, order, or instruction, and no more than three of the six such transfers may be made by check, draft, debit card, or similar order made by the depositor and payable to third parties. (reference)
So, be aware of the six transfer limit on online savings accounts or you might be in for a surprise!
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What I would suggest is to open an account at a credit union where your money is guranteed by the National Credit Union Administration (NCUA)rather the the private Federal Reserve Bank. They do not have this 6 ACH limit because they do not have to abide by the Federal Reserve rules and regs. I know, because I called and asked my credit union about regulation D. Maybe if more people were to bank at their local credit union (where they often offer better interest rates than the bigger commercial banks), the big banks will finally get the idea that they need to treat their customers a little better…hopefully before they go bankrupt.
Actually that’s not correct. I just had this happen to me and I bank with a local credit union.
Federally chartered credit unions and state chartered CU’s there is a huge difference.
My credit union stated that they are required to abide by these rules. Unfortunately I was unaware of these regulations and had 6 debits from our savings because my husband lost his job. I am now no longer able to use my savings account for overdraft protection and was threatened with the closure of the account
My credit union has the same 6 transaction per month policy
I have to disagree with your statement about a credit union. I have a savings account at a credit union and they do have a regulation D and the 6 transaction limit. I know from bad experience. After 6 transactions they charge a fee like an overdraft fee, mine was 3 charges of $35. Now checking accounts evidentally do not have any limits on transactions atleast thats what I was told by the teller that if I had a checking account instead this wouldn’t have happened.
I beg to differ with you on the credit union bit. I was banking with a credit union and not only did they deduct the fees, but they also did it on my checking account telling me it was to be done on both, when I have accessed my savings only once in the year or so I have been there. $225 worth of fees!
It’s not the bank that decides this making it not a valid comment to say that they need to treat their customers better. It’s the federal government that decides. Working at a bank I know this and trust me, if I had the power to change the rule I could but I can’t. So get mad at the government not the banks.
Actually, many banks waive these fees, hoping instead that a polite reminder will bring their customers back in line. Accounts will be cancelled for a pattern of violations, showing wilfullness.
The federal regulation only discusses how a bank deals with the Fed (i.e., the bank can’t count accounts with 7+ transactions as a “savings account” for reserve requirement purposes). The federal regulation doesn’t say anything, one way or the other, about how a bank should deal with this issue with its customers.
I love how you wrote this all professional just to be wrong!!!! hahaha
The original comment IS wrong, everyone wrote to correct him. If you did any research you would know that instead of making a dumb comment.
You can go into the branch and do a in person transfer without having to pay the fee.
What bank are you with? I receive a letter from Chase bank last week stating that I’m limited to any combination of six withdraws/transfers out of my savings account per month.After that I’m charged $5.00 per transaction.That includes those made at ATMs and in branches.
Yes, this same thing happened to me. I was charged a total of 25.00 dollars, and had no idea they were charging me 5.00 dollars for these transactions and withdrawls. Went to Chase and told them, I had no idea this was going on. So they waived the fees for me. But now I must watch out, and not going over my limit. Don’t understand this law, it is our money and we should be able to take out as many times as we like! This law has really upset me and my husband!!
Sorry, that is not correct. It was my credit union that told me about the law.
Wrong! To my detriment I can tell you that Credit unions use this exact policy. I am a Desert Schools FCU customer and have just been hit with a $20 debit for going over my limit, although they did refund it after I said I would be in to close my account.
I recently discovered this unfortunate fact as well- $125 in overdraft fees because I was not able to transfer funds to cover my vacation expenses.
I am sick of federal regulations on things like this- it’s my money, why can’t I use it when I need it?
I am so with you on this! Banks and the federal government is wondering why people don’t use their banks like they used to….because people don’t have rights to their own money, its regulated by the federal government and after the past few years of banks closing and going bankrupt people are scared to keep their money in them.
I completely agree, it is insane that people are not allowed to use their OWN money without being CHARGED FEES!!!
I had a few hardships hit my family all at once causing overdraft fees on my account of $145.00 paid to the credit union. I made 3 efforts to transfer money. I went to an ATM one of those 3 times and transferred it just fine. The other two were on line where My Credit Unions system said “Transaction approved” so I’m thinking no problem I’m all squared. I have demanded they refund those charges otherwise I will be closing my account which has been with them since 1995 and I will not reopen an account anywhere. The company I work for offers a paycard which would automatically be loaded with my earnings every two weeks and that would be all I need. An inconvenience however worth it to me so long as there are no limits put on that as well. I am sure that someone who thinks very highly of themselves and has millions sitting in a bank who would never be impacted by such a ridiculous regulation put this in place to keep the money in their pockets for “investing” because that’s the only reason I can find or think of that our government would put such a regulation in place. Aren’t we supposed to be spending our money and stimulating the economy?! So with that said. Our government and big business apparently don’t recognize their greed and unneccessary control inevitably will lead to the decline of our country starting with our banking system. Everyone knows we are half way there. They don’t allow those who are responsible for thier own actions to take the necessary actions to save themselves heartache and frustration. I don’t know about anyone else, but I don’t have time to be going in and out of a bank to transfer MY money… and I completely agree Who the HELL do any of these people think they are telling me what I can and can’t do with MY own money. The worst part… My Credit Union’s phone systems answers “Thank you for calling ________ Credit Union, You’re not for profit organization” What a JOKE! I should hear within the next 3.5 hours if they are going to credit me and transfer the money as I have requested twice on line.
This just happened to me at my local credit union. I was on my honeymoon and I had money in my savings but because I went over the 6 transfer limit in the month, I was charged $200 in fees. Ridiculous. What do we do to change this? Maybe savings accounts need 10% reserve requirement. Its fascinating how banks operate and no one seems to care at the absurdity of it all or atleast lets it keep happening – maybe because everyone was getting “funny money” in the forms of loans and thought they were rich… but now things are changing, eh?
This is what you do, you have more than one savings account and scatter your transfers between them, I personally have three savings accounts and one checking account online and none of them have minimum amounts so I do not have to worry about carrying a balance if I do not want to, you just have to play the game better than the government which really is not that hard as they are all a bunch of idiots anyway. It has cured my problem, I pay bills out of them and transfer money whenever I damn well please!!
Everyone, don’t blame the government for the fees.
It may be a dumb government rule, but it’s banks like Chase that are exploiting it and misrepresenting it out of greed.
The government-stated limit is 6, not 4. The fees are 100% tacked on by banks. Nice banks give you warnings, and then automatically switch your account to checking.
Evil banks like Chase start imposing fees — big ones — repeatedly — after 4 withdrawals (not 6). And they position it like it’s the evil government rather than evil Chase causing the hassle. And they steer you into expensive overdraft “protection” by default. And they double-dip, charging you big fees for overdraft “protection” and automatic withdrawals over 4.
They know it’s controversial and they know they are going to alienate many customers. So you should be able to tell them to reverse the fees. (I did).
Then, do some web searching and move your bank accounts to a more scrupulous bank.
Yup. Same thing happened to me at Chase. I got charged a fee for more transfers than 4, then 2 additional fees for each over limit transfer. I asked them to refund the fees and they declined. I’ll be banking elsewhere very soon.
The Regulation D discriminates to the disabled and the people with special needs the most. I have a friend that is a disabled vet and has no legs. The bank fined him for going over the limit with his savings account and turned off his account. I wish that they would abolish this law on the grounds that it discriminates towards people with special needs. Simply put, they don’t have the same luxuries as we do. I say, shame, to whoever came up with this law. The law forces people to go to the bank or ATM to make a withdraw from savings. This guy has enough problems, now the government is telling him how to do his banking. Shame!
As much as people like to blame the Government for everything, this is the large for profit institutions that are at fault.
The Part D regulation that the Banks have been charging you fees for violating is simply the regulation that defines the difference between a Savings Account (savings deposit) and a Checking Account (transactional account). If you make more than six electronic transfers out of a (savings deposit) account in a 1 month period it will no longer qualify as such and may have to be changed to a (transactional)account and that changes the amount of money that the bank has to hold in reserve, that’s it.
There is nothing in the Part D regulations that says that a Bank has to charge you a fee for violating this rule even though that is what they want you to believe, my bank went as far to say that they where charged by the government so they had to charge me for it.
A good quality Bank will notify you about the 6 transfer rule and then if you continue to have problems with it change your savings account to a checking account. The other guys will charge you large fees and blame it on whoever they can and keep doing it till you change banks.
Let us all have ONE account CHECHING.
Why is there a 6 transfer limit anyways? Why did this all come about? I have overdraft protection for a reason and so what if I drain my checking as long as I have savings to cover it?
You did not read the article above… this is why AND so banks do not get a bailout again fro mthe gov’t…
“when Emigrant Direct gets your $1,000 in your saving account, it doesn’t need to hold any of that in its reserves, it can loan all thousand dollars because the reserve requirement on a savings account is 0%.”
Yeah Uncle sam got me for 345 bucks. Paypal pulled out of my Savings multiple times. It cost me more in fines than what I bought. So now I have decided to pull all my money out of banks and have become a non consumer since I get punished if I spend money or not. I am tired of all these people ( our government) telling me how I can spend my money, when and how often. But no more. I encourage others to do the same.
I am with you, I have a savings account that I will no longer deposit money into, just use it as a check cashing station without any fees.
The six limit rule does not apply to ATM transfers, transfers made in person at your bank, nor transactions sent in by mail with an original signature.
My reference is the Federal Code of Regulations (12 CFR part 204.2) which is titled definitions. Several credit unions have common sense wording which you can find on the web. Goggle “Federal Banking Regulation D” and look for University FCU, or NARFE FCU, or even good old Wikipedia.
I was charged for transfering from and ATM. When I asked about this I was told by the bank manager at Wells Fargo that ANY electronic transfer is subject to the limit and ONLY transfers made from within the bank at a teller station would not be subject to the agragate limit.
Bottom line is that Banks want to charge you for eveything now. Take the check cashing fees for instance. They say they are providing you a service by chashing a check drawn on their bank writen to you by one of their customers. I say I am providing their customer a service by taking their check.
Below is from Wells Fargo’s website Fees Questions FAQ page. I called Wells Fargo to confirm that there is no charge (and it does not count towards the 6 limit of Regulation D) to transfer money at an ATM using the transfer function. You should call again and inquire and then try to get your money back. I went over 6 in one month and was charged $10 for each transaction over the limit but I was able to get them to refund me $5…so to whomever thinks it’s a government fee, to put it simply, you’re wrong. It’s an evil central banking cartel fee, designed by the Federal Reserve (the “FED” is not a government entity either, it’s essentially a private corporation with Congressional oversight…Google it!).
FROM WELLS FARGO’S WEBSITE:
An Excess Activity Fee occurs when you exceed the federal regulatory limits on savings account transactions. Regulation D limits certain types of withdrawal and transfer transactions you can make out of your savings or money market accounts to a maximum combined total of six (6) per month or monthly statement period, including:
Transfers via telephone
Transfers via Online Banking (including Bill Pay)
Automatic Transfers for Overdraft coverage to your checking account
Pre-authorized transfers and withdrawals from your account (including automatic and wire transfers)
Checks, drafts, or similar other withdrawals payable to third parties (counted when they are posted to your account and not when they are written)
Debit Card or ATM Card purchases that post to your savings account
An Excess Activity Fee may apply for each transaction that exceeds the limit stated above. If the Bank determines that you are exceeding the limit described above on more than an occasional basis, the Bank will, at its option, either close your savings account and transfer the funds on deposit in your account to another account that you are eligible to maintain, or terminate your right to make transfers and write Items against your savings account. For details, or to see if there is a Wells Fargo account that may better meet your banking needs, please call 1-800-TO-WELLS (1-800-869-3557).
I also had this same situation just today. I spoke with three different people and threatened to close my accounts. She eventually gave in and refunded two $10 fees.
I asked her if the fees went to the federal government since it’s a federal regulation and she said “no.” It’s definitely Big Bank relying on fear of the FED to take money.
The oddest thing was that she said I could make transfers between my accounts, which is how I went over my 6 transaction limit, at an ATM or in person. But I could not do the EXACT SAME THING online.
Wow.
I agree- what difference does it make how I make the transfer if I am the one requesting the transfer? I have to go through 4 different “security” screens to get to my account you would think that would be enough to justify I am wanting to do it. They all sound like a buch of idiots talking in circles…
Bank of America charges after 3 withdrawals…. of ANY kind. They say that they charge $3/per over 3.
When I challenged the CSR and told him the Federal Regulation is 6 (which is absurd and just another way for the gov to steal from the middle-class), he stated “Well I see where Bank Of America only allows 3″.
Interesting how they can take an unfair Federal Regulation and make it even more inconvenient – and costly – for their customers…..
Oops – did I say “customers”? I meant FORMER customers.
Chase said the $12 fee per transfer $36 for three I was charged is a fed charge and they could not refund me for not knowing the reg. It can add up quick and you don’t know it.
My roomate was refunded the $ 12.00 fee. I can pretty much guarantee, the federal government is not getting the fee.
yeah wells fargo changed my statement cycle without letting me know so i got charged twice for excessive activity fees. they were $10 each. i called them up and i was told she would take care of the fees and when i looked at my account she had only reversed half of each fee. she also told me i was ok to make a transfer so i had her make one then i got another fee! so i had to call again! they reversed that whole fee because it was their error but i couldnt get the whole fee reversed for the other 2 because they werent allowed to and there was know way of them doing it. even it wasnt explained to me what she had done. i’m about fed up with my bank i would go to a credit union but i’m on check systems right now and they wont let me open up an account and wells fargo is the only one that gave you a “second chance” account.
I just got hit with three $30 fees. They refunded $45 dollars of the $90 bucks. Better than nothing! Anyhow, you can also back it up with credit card if necessary.
I just want to say.. I never realized what regulation D was until I logged into my banks website to find that my savings account was GONE. They meaning government changed my acct into a checking account with a completely different account number. I was a) surprised b) extremely mad. All my direct deposits into those accounts.. were returned… so much for having a Christmas for my kids..I received no notice by phone or mail. The government just did what it wanted.
Is there anywhere we can put our money that doesn’t have to abide by these rules. Yes my credit union sent out there notices this week. 6 transactions. This really messes us up. My husbands check goes into the savings and we distribute into other checking acccounts. When the credit cards are due we transfer out of savings to checking to cover the transfers. We have an unplanned expense we transfer to checking to cover it. this is how we want to do it not how the federal government now says we should.
Open accounts with ING and you can have multiple savings accounts to transfer from with no minimum requirements on a balance, they will warn you on the sixth one and have never charged me anything, the interest rate is higher with them and again you can have multiple accounts so you can avoid the 6 withdrawal maximum in the first place, I have an actual savings account and then I have a couple others to pay bills from and whatnot, I will never have more than 3 transactions per month on any of the four savings accounts I have, just have to play the game with better skill, there is always a way around almost anything the government does, other than taxes, well unless your rich……..
I agree with this. INGdirect.com allows you 1 checking account and up to 25 savings accounts. I was having my check direct deposited into one savings account and then automatic deposits to transfer funds allocated for bills to other accounts. This put me over the limit of 6, I actually had more like 22 withdrawals in a month. They sent me the courtesy letter suggesting I deposit to the checking account and then subdivide the allocated funds back to the other savings accounts. This brings me to no more than 4 withdrawals from any given savings account per month. So far so good.
I see the point in the regulation, but was unaware that any such thing existed. Fed does not require the fees, just the limits.
Life is not fair, and we are all trying to get ahead, but I don’t try to hinder you, do why are you trying to hinder me? This statement can apply almost anywhere.
hank you for contacting HSBC Bank USA, N.A., the world’s local bank.
Federal regulations impose specific limitations on transfers for savings
accounts. Only six preauthorized, automatic, computer or telephone
transfers can be made from a savings account to another account per
calendar month or statement cycle (or similar period) of at least four
weeks. No more than three (3) of your six (6) such transfers may be
made by check, draft, debit card, or similar order made payable to a
third party if permitted. If these transaction limits are exceeded for
any three (3) months during any twelve (12) month period, the Bank may
be required to close the account or change the account type.
For additional information on the products and services HSBC Bank
offers, please visit us at us.hsbc.com
It’s easy to reach an HSBC associate to answer your questions. To send
a secure BankMail, use the BankMail link conveniently located in the
left gray navigation menu while you are logged into your Personal
Internet Banking service. Our Customer Relationship Center is also
available, 24 hours a day, 7 days a week to meet all of your HSBC
why is it that we have to make up there reserve it should be like there ckecking account there reserve is overdrawn let the bank take the hit we shouldnt have to pay fees for our own money the bank play with it and pay little or no intrest to use our money but wack us big fees if we want to use our own money let them pay a fee for there reserve being low just like us if our checking goes to low were overdrawn 35.00 fee guess they should pay like we do
I work at a bank and what I don’t understand is why even KEEP money in a savings account if you are going to move it all anyway each month. Fact of the matter is, savings accounts are for just that, SAVING. If you want to move money every month why not just put it into a checking account that have no regulations regarding this. I take so many phone calls regarding this and while we do not change a customer’s account the 1st time it happens (we give them 3 warning letters before shutting down their electronic banking abilities and then on the 4th we shut down their OD protection)we do charge for it. After the 3rd letter you would think that people would re-arrange their acocunt or spending habits to avoid the fee/regulation. NOT wait until the 4th notice and then call screaming and yelling that e (the bank) and the government are a bunch of monsters. Open a checking account, heck, even open an interest bearing checking account if you have the opportunity to. Interest rates are so low right now, and you’re not keeping money in the savings anyway apparently, why does it matter?
Why does it matter? It matters b/c it is my money. I use my savings for just that…savings. But, unfortunately, things happen like job loss. So, on an unexpected month where your husband loses his job, the hockey fees are due, your oldest son is getting ready for college/HS graduation, teeth need fixed…you can get lost in the transactions and overdraw. It happens. Isn’t it enough that we get charged outrageous fees for the bank to “protect” me from overdrawing my checking acct? Now I have to conform to how the government says I should use my savings account?! They can’t even balance their own budget, so stay out of mine!
@ Steph:
I completely agree with you! Since the government can’t balance their own budget they should stay out of mine! And, thank you John, JB, and John Smith for letting us all know that the fee is set by the bank/credit union! My credit union refunded one of my five $35 fees! I will call again and if they refuse to refund the rest of my money I’ll go elsewhere.
The government isn’t telling the banks whether to charge fees for violating the terms of the savings account contract. The government is simply regulating banks, telling them they have to hold money in reserve so that if their customers want to draw down their accounts all at once (e.g., in a panic), the banks will be more likely to be able to respond to withdrawal requests.
I understand your position; however, many people are out of work and have taken a job that pays much less than they are used to making. In my case, my husband’s company fired many employees or reduced their salary so much that they had to leave and find better jobs. The “better” job my husband got turned out not to be so he opened his own business. Although the business is doing well, he isn’t paying himself what he used to make. Many people in this economic downturn are learning to live on much less than they used to. If that means that they need to pull their OWN money out of savings to help cover their bills, or unexpected expenses, they should be able to. And, not everyone has time to look at their banking history every day. My job (helping with the business for free), taking care of my three kids, cooking dinner, helping with homework, etc. come before checking my bank history every day.
People get interest on Savings. People get lower or no interest on checking accounts. There are fees on checking accounts. given the choice why are you surprised that people want to use savings accounts for normal banking?
To the auto checker bot I am not amused with your demand to rewrite my post from a blank sheet. This is not “spammy” so stop directing me to rewrite autbot.
Because many of us choose to place money into savings with the intent of doing just that… SAVING. But things come up sometimes that aren’t expected – like a 3-week interval where you’re between jobs… or your 20-year old daughter leaves an abusive relationship and runs to your home, and then you have to fight to get her child because the father wouldn’t allow her to go with the mother and the police can’t intervene without judge’s orders – and even when you get those, the father keeps hiding the child so that you’re spending a lot of money on gas, phone calls, and other necessaries to try and get your granddaughter home safely… or someone hits you head-on and their insurance decides to fight the claim – meanwhile you have to get yourself and your family on the road again and pay the doctor bills associated with the wreck while waiting for the other driver’s settlement.
LIFE happens and screws up our intentions now and then. And when it does, it shouldn’t incur a penalty from the Federal Govt or an excessive fee from a bank you trust.
ATM transfers count, but do ATM withdrawals count? Because rather than transferring, one could simply withdraw the money … then redeposit it into a checking account. Right? My ATM accepts cash deposits.
It seems completely ridiculous that in person withdrawals don’t count, but online do. When was this law written, 1925?
Lastly, in reply to the bank worker, times are *still* hard and money is extremely tight for many Americans. I was not aware of this law and made several transfers in order to cover bills, both regular and unexpected. I had the money, would it be better to let the bills bounce instead of transferring out of savings? I was trying to leave most of my money in the account, hence several small transfers that put me over the limit.
I’m highly upset about this federal regulation to charge me for moving MY HARD EARN MONEY from MY savings account. I bank @ two different banks and I was charged because I made more then three at one bank and I went over four at another. This is straight BS, because both institutions talked me into getting a savings for overdraft protection. However, they failed to mention if I make more than three transfers from my saving to my checking you’ll be charged.
Well, I work and live in Afghanistan, that is my money and I should be able to access it anytime I feel I need to. This is stupidity at a new level.For all of you anal retentive bank employees, there are some people who actually need access to THEIR MONEY.
the regulation is nothing new. i have worked for banks and a credit union and the federal regulation is there for both. they are trying to encourage people who open a savings to use it as such. if you only want an account to bounce money around, that is what your checking is for. sure we all go through needing a new furnace (happened to me in december) and crazy unexpected expenses, but you can transfer one larger amount out of your savings, even 2 or 3 times to cover these unusual circumstances. if you have to use your savings as OD protection more often than that, then shame on you for not managing your expenses better. fyi, these regulations are outlined in all the material handed to you when you opened your account… i bet like all your manuals or instructions they were tossed out, shoved in a drawer or otherwise never read.
Wow… and I bet you read all the fine print they flash across the screen for an infomercial… NO SHAME ON YOU!!! For allowing this sort of nonsense to take place… You seem to be missing the point that no matter what kind of account it is… If it is MY money I should be FREE to use it exactly the way that I want. Besides… Doesn’t a bank move funds from one account to another to yeild higher payouts for themselves? So tell me how is that any different from me moving funds back and forth from one account to another. Infact this is a common practice of corporate or large businesses but working for a bank you should know that right?! Banking is a business just like any other. You are stupid if you think that defending the bank is the RIGHT thing to do. So good job grouping yourself with the idiots who are running our country into the ground. What kind of idiots do you think people are?! Really?!
This just happened to me. We use the Savings account to pay Federal Taxes with via ACH. We were not aware of the limit, and had accidentally posted some transfers in error TO the savings account. When we discovered it a few days later, we were not able to transfer them back because we had already had 6 transfers OUT of the savings account. The funny thing is, the lady on the phone told me that, I can’t transfer it online, through my banks website, and I can’t do it over the phone, but I could transfer the money using an ATM, or at a branch. It’s weird that I could talk to a teller in person, but not on the phone, exactly opposite what the banks really want you to do, and that I could drive over to the nearest ATM, and supposedly do it there, electronically, but not through my computer. It’s near the end of the month, so we will just do the transfer in a few days, but wow – this is really lame.
I don’t know if this has been mentioned..you can transfer via an ATM as much as you want, those aren’t subject to the 6 per month rule! My credit union suggested it!
I was charged $60.00 by my Credit Union in Bergen County N.J. for “EXCESSIVE REG D FEE” so I guess now its not just an FDIC issue but also a NCUA issue! And they did not even send me a notice from Paragon Federal Credit Union, and I have been a customer for years! What a Shame!
I mistakenly transferred $3,000 into my savings account instead of my Mother’s checking (her brokerage income). In order to transfer the money back to her, I was limited to $1,000 per transfer (to same institution), so had to use up 3 and ended up going over the transfer limit that month.
I was charged $10 & had 2 pending transactions. By the time I received the notice in the mail, they got me for another $20. Just simply ridiculous. I don’t mind paying the 1st $10, but another $20 is a joke.
I called Wells and first got the “it’s a Federal Regulation…blah”. I was nice & simply said “ok”. He asked if I needed a checking and I told him I already had 3 with them. He then went ahead and reversed all $30 charges, which I didn’t expect. I know I just got lucky plus I’ve been their customer for 25 years.
So, yes, it’s Federal regulations to limit the transfers, but don’t kid yourself, it’s the bank that decides on the action to take, including the fee amount. They can easily wave them if they want but it’s such an easy way for them to make money, why would they?
Savings accounts these days pay practically 0%, so why even bother with one? Might as well just get a checking and avoid the hassle and excessive fees.
My bank avoids having your savings account close by automatically converting your savings account to a checking account if you hit 6 online transfers. It’s a good thing because it really saved me one time.
Does everyone realize how this Federal Regulation actually makes no logical sense in practice? What difference does it make whether you make your savings withdrawal in person at a bank counter, or online? A withdrawal is still a withdrawal. So if the supposed purpose of the regulation is to differentiate the use of savings accounts from checking accounts, they’ve contradicted it by allowing unlimited personal withdrawals.
No, this is another example of collusion by the Feds and the banking industry to the detriment of the consumer – the same sort of greedy thinking and manipulation that led to the economic collapse. John and others above are right – there is no Federal mandate to impose fees. It’s the banks that are doing this, and their fees are arbitrary. I have just been hit with charges too, from Chase (who by the way starts dunning you after 4 withdrawals, not 6), and when I asked them where all the money from the charges went, they “didn’t know.”
It doesn’t have to be like this. I live in England half the year, and have used several different “big” banks. There are NO FEES for unlimited transfers between your own savings and checking accounts (or to someone else’s for that matter), and there are NEVER any fees for online transactions between banks like there are in the US. It’s time the US banks were made to stop scamming the consumer with these bogus charges for internet transactions -which cost them nothing and save them countless hours of paid staff time.
Thanks, everyone, for your posts. It’s good to know I’m not the only one outraged by this madness.
Everyone – let us not forget why banks exist. They exist to make money like any other business. They will charge fees for their goods and services to make that money. They have all those executive salaries and investors to keep happy. Banks were never invented as a customer service industry, and certainly not a free industry of any kind. They have always made money on keeping a product safe in their vault rather than you keeping it under your mattress. Government regulations are their to protect the government and you. Banks are like any othe private enterprise that cannot regulate itself without causing harm to the public at large.
I was charged $72 in Chase transfer fees in the past week. Was I notified I was charged? No.
I have been babysitting for the past two weeks, and moving money around to try and keep track of it all. I hate having more in checking, so I move some back when it gets that way. But this morning I noticed money was going somewhere, and, as I am the only one on my account, I figured it was Chase. I was right. I called CS, and they told me it was a Fed. D regulation and that they had to charge the fees.
After reading all this, I’m going to Chase tomorrow, and if they don’t refund my money, I’m going all cash.
(Or maybe not.. No more eBay? :/)
Put your money in a safe and buy gold – LOTS OF IT
SCREW BANKS!!!! SCREW BIG BROTHER , SCREW TV CAMERAS ON EVERY STREET CORNER. EVERY MAN AND WOMAN HAS THE RIGHT TO DEFEND THEMSELVES AND BEAR ARMS. BANK ARE JUST ANOTHER COORPERATE SHAM!!! PUT YOUR MONEY IN YOUR MATTRESS AND SOCK IT AWAY. YOU’RE GONNA NEED IT SOON WHEN ALL THE BANKS AND THE ENTIRE ECONOMY COLLAPSE!!! IT’S COMING!
But yet I can drive to the bank, round trip 10 miles, take this time out of work, fill out paperwork and do the EXACT SAME TRANSFERS – UNLIMITED YET – in person! What idiot in the federal government came up with this one? Someone who has an interest in an oil company or paper company?
The in-person unlimited transfers are in the letter I just received from PNC Bank:
Quote: “However, you may make an UNLIMITED number of the following types of transfers:
-Withdrawals made in person, by automated teller machines(ATMs), mail, or messenger
-Transfers to another PNC account made in person, by ATMs, mail or messenger.”
Where is the logic??????? When I called them, they could NOT tell me why….the explanation in this article explains only part, not the reason why I have to go in person to do unlimited transfers!!!
You can do it in person because they know that you probably won’t. I don’t like this rule because I use my savings account as a checking account. I like that it is called ‘savings’. It makes me feel like I am saving but the truth of the matter is I move a lot of money. I think if most people take a look at their activity a lot of it is for convenience not emergency. I understood when I opened the savings account that the bank wanted to ‘use’ my money. I agreed to let them use it in exchange for their services. I don’t like it, but it makes perfect sense that they would like to be able to know that the money I agreed to let them ‘use’ will be there in part in some way they can half way rely on. Considering we are in a depression, I think its fair that we want the flexibility to move money without penalty, but I agree if you are moving money ‘frequently’ it is not a savings account. You can set up two checking accounts and transfer to your heart’s content, or go to the bank as often as you need to. My bank does not charge ridiculous fees its $3 per additional transaction and they send several warnings and would change the account to checking. So some banks are taking advantage others are abiding by regulation. I think we know if they didn’t charge a fee at all consumers would not comply as readily.
It is interesing that you can exceed the limit and they charge you a $25.00 fee. Most banks
and credit unions do not charge the fee but I
happen to have one that does. Increases the bottom line for the famous financial institutios.
this is crap its my money i should be able to transfer it when i need to thanks to this my baby is going to starve. now iu cant buy formula because my money is stuck in my savings
Man, a lot of you people are always so pissed off at things you don’t bother to understand.
How’s about you take a moment to understand how the reg protects YOU. Or you can just join the teabagger party LOL and yell and scream stupid stuff all day.
Have some personal responsibility and learn to manage your money: make a few large transfers into a checking account and then make as many transfers as you like. Or you could always try GOLD. LOL too funny.
to this I say whatever!! Not everyone is in the position to be able to do this. I think it is wrong bottom line that the bank tells us, the ones who invest our money in their bank how much we can take out and when!! It’s a crazy law!! bottom line!
This is the stupidest law I have ever heard of. America is no longer a free country as long as we have politicians governing over every little thing we do.
I currently have a government job, but we are not getting a single pay raise for three years, but I’m sure Obama and his gang of crooks are getting there payraises.
I say we vote “None of the Above” in the next election, and see how the politicians like being unemployed.
I just contacted Usbank and advised them of the withdrawal fee that was charged to my account. At first they had told me that there was no way they could reverse it. So I said whatever! Then I called back and asked for the manager to have them get my paperwork ready because I was stopping by at lunch time to close all my accounts with them. And so she said she would reverse it as a one time courtesy. She advised me that I should not continue to do transfers to prevent this.
BS!!! I did get the fee reversed. Tha banks have the ability to do so!
CALL THEM AND GET THEM TO REVERSE THEM FOR YOU otherwise you will cancel the accounts.
IT works!
i did the same thing with wells fargo got on the phone 3 times today being nice and letting them say no but this time when i call im being rude and saying im closing the accounts because i heard people say it works and i need the money for my tuition im not giving up
I love the way the banks blame the Federal Government when they are ones who lobbied to get it enacted.
You know… you can have 2 accounts at 2 different banks and not get hit with this fee… They only monitor at their bank. So split your money bewteen 2 banks and play their game until they change the rules again!
fixemuprn must work for a politician. Lets hope not for a nuclear plant.
I want to lobbie to get this changed. We all need to start working on communication with our state senators. If enough of us are heard. We can make a change. So email Patty Murray and Maria Cantwell. NOW WHILE YOU ARE STILL PISSED OFF LIKE ME.
I AM HORRIFIED BY THIS!!!! MAYBE ITS TIME TO JUST STUFF OUR MONEY UNDER THE MATTRESS SO THE FEDS CANT CONTROL WHAT WE EARNED!!!
I have transferred $ from savings to checking a lot a Chase using an ATM machine because that seemed to have been considered a “teller” under section D. Transferring from savings to checking either online or via telephone counted leopards the monthly limit. Only one time did I get a letter from Chase and a fee charged to me and that was due to an automated xfer from savings to checking that I forgot about…so I went over the monthly limit.
As of November 19, 2011 Chase will start to count transfers from ATM machines and in person teller withdrawals towards the monthly limit. So now I am finished with using my savings account . Years ago I got maybe $15 in interest doing my transfer; however the pars 3 years I have only received 2 cents each year. It’s not with the time I am tacking to do these transfers.
I own an appliance store and recently fell victim to the 6 rule. Every time I sell an appliance, a portion of the sale needs to go back into my inventory savings account to purchase more inventory. I visit the credit union with daily checking account deposits then return to the office to do my accounting online at the credit union web site. I need to transfer funds daily from my checking to my saving based on my daily sales. I do all this simply for my tax records. Nope. Can’t be done anymore. I’m now using my mattress. How stupid.
i just called wells fargo about this they tried to give me the courtesy but they said it was valid fee …. the only reason i didn’t have to get ghetto was the woman was so nice and was really understanding and tried her best to do something but couldn’t …. i will be switching back to my old credit union before 2012 so that will be better and prove my point . i just needed that 15 dollars for my tuition so now i have to take spending money and pay …. but out of the 10 ppl i talked to today she really tried and even gave me a complement for watching my finances like that …. if i had of talked to her this morning i might not be so pissed off with this crap
I work for US Bank and was hit with a reg D fee. $150.00. . . We have two small children and with our economic condition we can’t afford to dish out any more than what is already distributed for bills and other necessities. Customers have fees waived everyday, I work for the bank and I’m not worth $150 to them.
I was trying to refi my house. It wasn’t my fault, the Bank was back and forth, never called me back, yada yada, I didn’t want thousands sitting in my account. BOOM, it’s time to settle up and my bank wants to charge me for transfering money again ! It’s from MY checking to MY savings and I have to pay. WHAT A RACKET ! ANOTHER WAY TO GET MONEY OUT OF YOU.
Ok, I understand the 0% reserve. I was enraged when I found out I had to change over my whole banking system because I use my Savings account to cover a lot of EFT payments. I can’t see that the government has any say in how I use my savings account-their record isn’t that great in the financial realm, bu now I see better.
Don’t like the Fed, well then why do most of you bitch about Ron Paul and call him crazy when in point of fact you want the exact same things!!!
If a bank closes your savings account due to exceeding your limit of withdraws can they seizue the account balance?
No, but they may assess a fine.
I was amazed to find that Desert Schools FCU had debited $20 from my savings account for transferring a portion of MY money from my savings account into my checking account on more than six occasions during last month.
When I telephoned them to question this, they informed me that it was a federal requirement for all financial institutions to do this.
Clearly, the banking institutions haven’t learned a thing from bankrupting themselves and continue to scam us for any and whatever reason they can get away with.
I explained that it was prudent on my part to deposit MY money into a savings account in order to gain a pittance of interest for as long as possible, then transferring sufficient funds to my checking account as and when bills were due. They agreed, but said that was not allowed to happen more than six times per monthly cycle.
I passionately hate financial institutions and all greed that they stand for! Why do we have to put up with this? It’s our money and therefore we should make the rules as to how it should be used.