I had a money market savings account and withdrew funds from it six times in a month. The branch manager of the bank took my money out of the money market savings account and opened a new checking account without notifying me. Is this legal?
Untitled
Your bank should have sent you a new set of disclosures for the new account, but yes they can do this. In fact, if you were exceeding the transfer limits the bank is required to take this type of action. The disclosures you received when you opened your account told you something to the effect that "you are limited to six withdrawals per calendar month or statement cycle, no more than three of which could be by check, draft or similar order..." This applies to a savings account, which is how a Money Market is defined.
In most cases, one or more letters warning you about excessive transactions would be sent from the bank, or they'd call you. This isn't required by them, however.
BankingQuestions.com is a free service made possible by the generous support of our advertisers. Advertisers are not responsible for site content. Please help us keep BankingQuestions.com FREE by supporting our advertisers. When you see an ad for a product or service you may have an interest in, click through to learn more.
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
Your bank should have sent you a new set of disclosures for the new account, but yes they can do this. In fact, if you were exceeding the transfer limits the bank is required to take this type of action. The disclosures you received when you opened your account told you something to the effect that "you are limited to six withdrawals per calendar month or statement cycle, no more than three of which could be by 