Federal Limit on how many transfers I can make from savings?

An Announcement from My Bank ^ | 31 DEC 03 | ME

[tomakaze]

[the url is just a link to my bank, if I knew what the law was I'd hunt it up and link to it instead]
 
I went to check my account balance to see what I had to play with this evening when I noticed this in my accounts inbox:
Subject: Transfer from Savings LIMIT OF 6
Date Sent: 12/30/2003 00:00:00 CST
Alert ID: xxxxxxx
 
THE FEDERAL REGULATION STATES THAT WE CAN ONLY ALLOW 6 TRANSFERS PER MONTH FROM ANY SAVINGS ACCOUNT. This is not a credit union regulation. If you have questions about this regulation, please call the credit union and speak to eit
 

[Desdemona]

Could it be to keep someone who has stolen an ATM card from draining the accompanying savings account?

I think it's more likely a restriction on interest bearing checking, or the concept of such.

Actually, if the regulation does go back to 1933, it was part of limiting the drain at banks due to public panic, I would imagine.

[TexasCajun]

Welcome to the club!

I got one of these a month ago from Chase Bank here in Houston.
I emailed them back and said exactly that- WFT! it's my money! ...and you know how much good that did.

[AlBondigas]

My experience:
Had a checking account & "Interest maximizer" account w/ famous Bank of America for over 20 years.
3 years ago I decided to try online banking.
First month: charges of $150 +.
I called BofA & they reversed the charges.
2nd month same thing plus a $250 charge for accessing overdraft protection.(interbank transfer dis-allowed).
Note, my interest maximizer was the default account for payments !!??.
I show up at bank & manager squares everything , explaining the 6 transaction limit on all non-checking accounts
.
Beware - you may be able to make more than 6 transactions...but there are fees involved.

[RinaseaofDs]

I can see one useful reason for this regulation.

Early hackers used to target banks. They would set up accounts, then set up transfers of small amounts of money (usually a penny or something smaller) into this account. They would then clean and close the account.

Limiting electronic transfers would put a stop to something like this.

Don't throw bottles or cans, I'm just envisioning one possible reason why the regulation may be there. Why 6? Who knows.

[zeugma]

Interesting case.

You can thank supporters of the war on drugs for this stuff, as that was the excuse made at the time to implement the regulations. If you are one of those supporters of the WoD, then congratulations! You've just got stung by your own desire for a bigger, more efficient police state.

IMO, the main reason to oppose the WoD has nothing to do with the drugs themselves, but rather the measures that are implemented to prosecute it which are always designed to increase BigBrother's power and decrease yours.

[familyofman]

"I would love to know the answer to why regular savings accounts have any sorts of restrictions like this."

Savings accounts by definition are "non-transaction" accounts, not a transaction account (checking). The regs specify the rules, banks are required to notify account holders - when they open the account what those rules are. If the customer forgets the rules - that's the fault of the customer. It's a bit like asking the trooper why are there speed limits.

Read your account agreements & quit bellyaching.

[jellybean]

I've also had instances where I've gone to the local gas station and filled up. Went to pay for the gas and purchase some merchandise at the same time. Thw clerk forgot to add the gas to the merchandise total, so had to swipe the card again to pay for the gas. This doesn't seem to trigger the system even though they both originated from the same gas station. It must be how they classify the purchase/sale...gas vs merchandise.

[null and void]

I just did 7 consecutive transfers from Savings to Checking in the amounts of $25 with my online Wells Fargo account.

No problems what-so-ever!

Yet.

[StayAt HomeMother]

We use what may well be the largest credit union in the world. (Name furnished by freep mail if you are interested.) This credit union gives us free checking and checks AND pays interest on both savings and checking. The minimum is only $5 in savings. Free national credit card, as long as it is paid off each month. 15 bills paid per month via Internet for under $5.00 (less than the postage to pay the bills via snail mail.) The credit union handles mortgages and home equity loans and car loans and money market certificates and CDs and all other bank-type services that I can think of except safety deposit boxes. So why use a bank?

That said, the credit union allows only 6 on-line transfers out of any one savings account per month. Why? I don't know. However, this is no problem because ATM and in-person access are unlimited as are pre-established payments for car loans, mortgage payments, transfers to our separate personal checking accounts, etc.

[skip2myloo]

Our government thinks it's their money -- and they get to enforce their opinion with incarceration and at the end of a gun barrel.

Just look at all these tax-deferred savings plans (401k's e.g.). I can almost understand collecting taxes when funds are withdrawn early, but what's the penalty for ?? A PENALTY for using my own money ??

Of course, if you have a good enough reason (in the judgment of the government) for using your own money, our benevolent government can waive the penalty.

And, don't forget, the government establishes the timeframe you can use YOUR money without penalty by establishing the earliest and latest ages you can take distribution.

Again, this is insane.

[Desdemona]

I wasn't complaining, just wondering. There were others out there, who were complaining.

[VRWC_minion]

The clerk told me I had exceeded my daily limit on my debit card, which seemed odd since this was only about my third stop. I had used the debit card the entire way out to Pittsburgh with no problem.

One of the things credit card companies monitor is the number of times a card is used consecutively that transactions are unsigned for. When you go several weeks and only swipe it at the gas station or use it on the internet you raise a red flag. To inusre that you still have the card, they send a code that either freezes the card or requires you to manually sign.

[Old Professer]

Howq will he prove it's his cash when "they" come looking for it?

[the gillman@blacklagoon.com]

...IMO, the main reason to oppose the WoD has nothing to do with the drugs themselves, but rather the measures that are implemented to prosecute it which are always designed to increase BigBrother's power and decrease yours...

Couldn't agree more.

I'm thinking it has something to do with the profiling associated with the Know Your Customer law.

I seldom do more than withdraw a couple hundred bucks in a week to play with. That savings is automatically replenished from another account, it's my cookie jar.
So to deposit a single large amount may trigger some profile flag.

Stupid nazis.

[NathanR]

Funny you should mention this. I have credit union accounts and this happens occasionly. When there is no money the checking account money is automaticly transferred from savings. There is a finite (apparently 6) number of times the CU will do this automatically.

Last night my wife called from the doctor for me to check her personnal account. Apparently she had been using the wrong cash card, and when she used it at the doctors, it was refused. When I checked, there were only $4.00 in her account and her "regulation D limit had been reached".

[Old Professer]

You do know the IRS monitors sites such as this, don't you?

[GigaDittos]

See post #33

[NathanR]

I make a lot of transactions also. The CU only chokes if it makes more than 6 automatic transactions in a month. Using an ATM, checks, or going to the CU don't count.

[Quix]

THEY CAN

change the government . . .

IF

THEY HAVE
THE COURAGE,
THE WILL,
THE ENERGY

to DO so.

Sigh.

[skip2myloo]

That's a Big IF ain't it, Quix ??