Credit Union sends this - Transactions Limitations Policy

Discussion in 'The Club House' started by Bigcountry02, Feb 17, 2013.

  1. Bigcountry02

    Bigcountry02 Coffee! If your not shaking, you need another cup Supporter

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    I got this in an email, will contact my credit union on some of this information.

    One thing to ask, has anyone else got this or something the same from their bank, credit union, or financial institution?

     
  2. JonM

    JonM Moderator

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    Thats a typical policy of most savings accounts. My bank only allows three withdrawals a month.
     

  3. Bigcountry02

    Bigcountry02 Coffee! If your not shaking, you need another cup Supporter

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    The one thing that comes to my attention is the Debit Card, that I will contact them on Monday about. My Debit Card is mainly for the checking account. Hopefully they are relating to the saving account only use of withdrawals via debit card; but, Monday will find out.
     
  4. trip286

    trip286 New Member

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    My old bank allowed six. The first time, they would give you a warning. The second time, they would just change it into a checking account.

    The reason it's a bank policy is because savings accounts often have different interest rates and maintenance fees than checking. This can be used to an unethical advantage (like banks know the first damn thing about ethics...).

    I never knew there was anything federal involved.
     
  5. danf_fl

    danf_fl Retired Supporter

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    There is reasoning for this.

    By limiting the number of account withdrawals, the fed is reducing the possibility of money laundering. My debit card purchases are limited to $400 daily from my checking.
     
  6. c3shooter

    c3shooter Administrator Staff Member

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    Used to have a Money Market checking acct for daughter. Made decent interest- part of the rules were 3 checks per month- MAX. Need more? Then you have wrong acct.
     
  7. Doc3402

    Doc3402 New Member

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    That's standard at my bank, too. The way it was explained to me is if you want to make frequent withdrawals you should use checking. Of course there is no limit on the number of deposits you can make. They don't mind taking your money. They just hate to give it back.
     
  8. Yunus

    Yunus New Member

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    Its a federal law and its due to reserve holdings and modern technology. Banks and credit unions must have X capital on hand in order to loan Y dollars. With savings accounts they can loan 100% of what they have on hand but with checking accounts they have to have a reserve because they are more fluid. With online banking a savings account lost many of its limitations so the government is artificially making limits in order to keep savings accounts as more stable and slow changing products than their checking account counterparts.

    Although rates are low banks can offer more interest on savings than checking accounts because given an equal amount of money in each they can loan more from a savings account making it more valuable to them.
     
  9. JonM

    JonM Moderator

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    As for debit card business its only when you link your card to your savings. I dont have mine linked since there is no point to quick access of those funds. Its only for withdraws using the card machines and your savings account
     
  10. Bigcountry02

    Bigcountry02 Coffee! If your not shaking, you need another cup Supporter

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    Thanks all for the comments. I will contact the credit union after President's Day.
     
  11. KimberFan

    KimberFan New Member

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    I like the "Bank Of Mattress"....no fees, no rules. :D
     
  12. Doc3402

    Doc3402 New Member

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

    shadamai New Member

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    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.
     
  14. Yunus

    Yunus New Member

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    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.
     
  15. shadamai

    shadamai New Member

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    At the ATM?
     
  16. Yunus

    Yunus New Member

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    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.
     
  17. shadamai

    shadamai New Member

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    Oh, ok. Probably so.
     
  18. JonM

    JonM Moderator

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

    Yunus New Member

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    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.