On a Money Market account, would using an off site ATM be considered a check? Would a Point of Sale transaction be considered a check? I know you are allowed 6 transactions, but only 3 can be checks, so I am trying to figure out what is considered a check (counted toward the limit of 3) and what is considered a pre-authorized withdrawal (counted toward the limit of 6).
Federal law and regulation require that there be limitations on transfers and payments made from savings and money market deposit accounts. That's so that the Federal Reserve Bank and economists can measure and help influence the size of our money supply to help encourage economic growth but control inflation. Some types of transfers from savings and money market deposit accounts are limited to six per month. Payments to third parties by check or by debit card are limited to three per month.
We usually try to simplify an explanation of the rules by saying that if you can complete a transfer from your savings or money market account in the comfort of your home or office, the transfer is one that is limited. If you have to get up and go to the bank or an ATM to complete the transaction, it's not limited so, withdrawals from or transfers from your account that you make at an ATM (any ATM) are not limited by the regulations unless a transfer is to a third party (an ATM bill payment, for example).
Third party payments by check are limited to three per month (and are also counted toward the overall six-per-month limit), as are debit card and ATM card payments at the point of sale (or when the card is used on the internet or telephone). Transfers from accounts made via the automated clearinghouse system (ACH payments) are generally counted toward the six-per-month limit and not counted like checks. Your bank may, however, count certain ACH payments that originated as checks (often called check conversion transactions) toward the three-per-month third party check limit.
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Federal law and regulation require that there be limitations on transfers and payments made from savings and money market deposit accounts. That's so that the Federal Reserve Bank and economists can measure and help influence the size of our money supply to help encourage economic growth but control inflation. Some types of transfers from savings and money market deposit accounts are limited to six per month. Payments to third parties by check or by debit card are limited to three per month.