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Home >> Accounts >> Savings Accounts
Limits on Online Transfers
I transfer money online from my savings account to my checking account frequently to pay bills. Is there a federal regulation that limits online withdrawals from a savings account?
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 There is a banking regulation that limits withdrawals from a savings account and banks are required to follow it. Here is what one very small part of a definition says about savings accounts:
"...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."
This is provided only so that you can see what your banker has to understand and follow. They don't like it any more than you do, but yes, this limits withdrawals on savings accounts.
What you can do is ask your bank if they offer a NOW or ATS accounts. These accounts have limited ownership restrictions, but allow unlimited transfers. An individual can own these account types, for example, but a for-profit business could not. You could transfer from either of these account types to your checking as often as you need. Your bank may have additional fees though for the accounts and transfers. They'll be happy to explain that to you.
Published on BankingQuestions.com 7/25/07
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