I recently opened a savings and a checking account. I informed the clerk that I wanted all my funds deposited into my savings account and when it came time to pay a bill, I would transfer the money to my checking, so that I could earn interest on my savings. The clerk informed me of a government regulation stating I could only make three transactions per statement cycle from my savings account. Is this true? If so where can I find this information online?
The restrictions on savings accounts are mandated by law and regulation. Here is what one very small part of what the regulations actually says as it defines the legal terms of a savings account:
"...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 (or similar period) of at least four weeks, 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."
The above is from Reg D, which you can find here. For what it is worth, many bankers are not fond of this rule either.
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
The restrictions on savings accounts are mandated by law and regulation. Here is what one very small part of what the regulations actually says as it defines the legal terms of a savings account: