|
 |
Home >> Accounts >> Savings Accounts
A Moving Question - Moving Money that is...
What is the purpose of limiting withdrawasl from savings accounts? Seems like Big Daddy is at work. Isn't this my money? What is the difference between moving the money from an online access and moving it at an ATM? Shouldn't the bank tell you of this regulation when the account is opened?
|
Untitled
|
 Congress requires that bank regulators separate transaction account funds, those in checking and NOW accounts and credit union share draft accounts, from savings accounts. Their reasons involve economic theory, money supply issues, etc.
One way to keep transaction funds (spending funds) separate from savings funds is to impose limits on transactions from savings accounts. Unfortunately, the rules on those limits are complex, but a general description is that if you have to go to the bank or an ATM to complete the transaction, you can do it as often as you want, but if you can complete the transfer or withdrawal from a savings account without the inconvenience of visiting the bank or an ATM, the transfers count toward the monthly limit of six such transfers or withdrawals.
It would be helpful for a bank to tell customers about these limits when accounts are opened. In fact, the requirements are almost always included in the written disclosures that are handed out, but they aren't usually highlighted. To be fair to the banks, most customers don't read most of the written information they get, anyhow. If the transfer limits are too much for you, you should move your funds into a checking account.
Published on BankingQuestions.com 5/14/09
|
| |
|
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
