[KimberFan]

I like the "Bank Of Mattress"....no fees, no rules.

[Doc3402]

Originally Posted by KimberFan

I like the "Bank Of Mattress"....no fees, no rules.

No interest, either. My bank pays a whopping 0.01% on both my checking and savings. See what you're missing out on? <grin>

[shadamai]

This is not uncommon- the Federal Reg D applies to all savings and money market accounts. The credit union I do business with is subject to these rules, as are all credit unions and banks. From my understanding, you are allowed unlimited in-person withdrawals at the bank, unlimited ATM withdrawals, and unlimited electronic transfers directly to a loan at the same bank. You can also do as many withdrawals by mail as you like, though I doubt anyone would do a lot of that.

Pretty much everything else is limited to the six transactions. This is only for savings and money market. The reasoning behind the law from what I understand is that banks are required to have a percentage of reserves available to cover checking accounts since funds are 'on demand' and constantly moving in and out, while they do not have this requirement for savings and money market accounts since funds are meant to stay there longer. (Funds not on reserve are loaned out and earn interest paid to either shareholders or members. Funds on reserve are with the Fed and also are not earning any interest.) If someone is constantly transferring money in and out of their savings account, they are treating it more like a checking account and the theory is that the bank should have more in reserves to cover it. I'm not saying I agree with so many regulations on our money, but that is the idea behind it. Personally, I think it saves money for everyone for more of the 'restricted' types like online transactions, etc. to be allowed. Ideally, big banks would be more responsible to begin with and the government would butt out.

I have never heard of debit card transactions from a savings account at any bank or credit union I've ever used (except for ATM withdrawals, which do not count against the six transactions; nor do ATM transfers.) I do know that if you use your debit card and don't have enough in the checking account and it results in an overdraft transfer from the savings, that IS counted toward the six since it is an electronic transfer.

[Yunus]

Originally Posted by shadamai

I have never heard of debit card transactions from a savings account at any bank or credit union I've ever used (except for ATM withdrawals, which do not count against the six transactions; nor do ATM transfers.) I do know that if you use your debit card and don't have enough in the checking account and it results in an overdraft transfer from the savings, that IS counted toward the six since it is an electronic transfer.

It may not be law but my credit union USAA counts debit transactions on savings accounts against the limit. They send me warnings anytime i get below 3 left for a month.

[shadamai]

Originally Posted by Yunus

It may not be law but my credit union USAA counts debit transactions on savings accounts against the limit. They send me warnings anytime i get below 3 left for a month.

At the ATM?

[Yunus]

Originally Posted by shadamai

At the ATM?

I've used it at the checkout counter, choosing debit and have to type in the pin. I don't know if that's considered a different type of transaction than ATM.

[shadamai]

Oh, ok. Probably so.

[JonM]

Originally Posted by Yunus

I've used it at the checkout counter, choosing debit and have to type in the pin. I don't know if that's considered a different type of transaction than ATM.

Its only using your savings account to do a transaction. Linking your savings to your checking/debit card is a very bad idea.

[Yunus]

Originally Posted by JonM

Its only using your savings account to do a transaction. Linking your savings to your checking/debit card is a very bad idea.

Jokes on the bank, my savings account has less than a dollar in it now!


I actually use a different bank for real savings. I've found that in a digital age where all my accounts are accessible in an instant I had trouble saving money. Putting the money in a different bank makes it slightly less accessible because I don't have a debit card for that bank and I tend to actually save that money.