Why am I limited to only six savings account transfer per month?

Question

I know it has to do with the Patriot Act? But what is the reason behind it?

Answer 1

bank policies.


i hate it too

Answer 2

This doesn't have anything to do with the Patriot Act or anything else. It is a Federal Regulation. Savings accounts are not checking accounts and we cannot use your savings account in that manner. You are supposed to keep your fluid cash in a checking account where you can write checks, use debit cards, transfers, whatever you want. Your savings account should be used for all of the money you are saving (hence the higher interest rates than on an interest-bearing checking account). This money should increase rather than decrease. You may need that money eventually and it is yours so you are allowed 6 transfers a month from it.

Answer 3

If you transfer from a checking to a checking account, you can do it as much as you want without a fee. The charge from transfering from a savings to checking is a federally mandated excess activity fee, that is not charged by the bank. I have a feeling it has to due with interest and such. The best way to go if you transfer money a lot is to have two checking accounts and transfer back and forth.

Answer 4

Its stupid and today I got letter that my bank was going to cxl my savings and either send me a cashier check or put money in my checking account. The money is my savings Is for savings and the government says we are treating it as a checking account . The interest on my 10,000 savings account has been.4 cents in 2 months. . I am sick of this type of government.

Answer 5

Blah Blah Blah.

As with sooooo many things today, it is not for our benefit, that s for sure.

The wealthy/big bankers find it more convenient. Period.

And that loon that talks about the percentage on their checking account. Pure horse **** pal. We used to get 4-6%. It is now like .2%. That s point two percent. Screwed again.

Answer 6

I don't think it has to do with the patriot act. I think the banks realize you are not worth the paperwork of doing all those transfers. That is why they make up policies like that.

Answer 7

The reason is because banks asked for it and congress stuff the Patriot Act with millions of things that has nothing to do with your security. They do that with most bills. For example, the law passed to make it a crime to buy internet porn using paypal also gave $2,000,000 to some company to build a parking lot in an empty field in kansas some 120 miles away from the nearest population. The parking lot size was never specified and was only 10 feet by 20 feet and cost the company $2100 to complete. Also, the road leading to the parking lot wasn't even paved. This is just another example of how stupid our government is.

Answer 8

Section 19 of the Federal Reserve Act imposes a higher reserve requirement on transaction accounts than on savings accounts because of the greater ability of depositors to transfer funds from transaction accounts than from savings accounts. (At present, the reserve requirement on most transaction balances is 10 percent, and on savings is zero percent.) The statutory requirement for different reserve treatment of transaction balances and savings creates a need to distinguish between the two types of accounts based on the ease with which a depositor may transfer funds in the account to third parties.

The Board's Regulation D regarding reserve requirements of depository institutions (12 CFR Part 204) implements this distinction. Section 204.2(d)(2) of Regulation D defines "savings deposit" to include an account from which:

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 . . . 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.
12 CFR 204.2(d)(2).
The definition specifically excludes from the three and six per month limitations arrangements that permit "transfers of funds from [the savings] account to another account of the same depositor at the same institution or permits withdrawals (payments directly to the depositor) from [the savings] account when such transfers or withdrawals are made by mail, messenger, automated teller machine, or in person." Id.

Question 1 asks if ACH transactions are subject to the three transaction limit or the six transaction limit. ACH transactions may be used for a variety of purposes. The nature of the specific transfer determines its treatment under Regulation D. Generally, ACH transactions count against the six transaction limit, and may count against the three transaction limit as well. Preauthorized transfers are defined to include:

any arrangement by the depository institution to pay a third party from the account of a depositor upon written or oral instruction (including an order received through an automatic clearing house (ACH)) or any arrangement by a depository institution to pay a third party at a predetermined time or on a fixed schedule.
Id. ACH payments out of an account are thus preauthorized transfers and, at a minimum, count against the six transaction limit.
In addition, Board staff has opined that point of sale transactions, which are often settled by means of ACH debit transactions, are subject to the three transaction limit. "Point-of-sale transactions with either ATM or credit card company debit cards and withdrawals payable to third parties initiated by checks or drafts" are subject to the three-transaction limit while "telephone, fax, and computer transactions to transfer funds to another account at the same institution" and "withdrawals initiated by telephone where the proceeds are payable to third parties" are subject to the six-transaction limit.

Answer 9

12 Cfr 204.2

Answer 10

above is right on. This is because of Reg D, not the patriot act.