Federal Regulation D on Savings Accounts

February 12, 2010 @ 20:29 - Michael

Categories: GeekLife

So, I've got a savings and checking account with National City, and when I want to put money away, I just transfer it into my savings account. Makes perfect sense no? I thought so too, but I knew there was some type of limit on the transfers, so I figured I'd call up National City and figure it out....so here it is:

Federal Regulation D limits the Withdrawals (or transfer OUT) from the Savings account to another account to 6 not-in-person withdrawals per month. Now, while that's an arbitrary number, I can understand a limit to make sure you don't try to use your savings as a checking account. Though, the fee for going over this regulation? $15/each, but there's a catch, that's ONLY for the first month. If you go over again in a subsequent month, there will be a $1,000,000.00 hold put on your savings account until you go into a branch and talk with a branch manager and regulation officer.

NOTE TO SELF: It's ALWAYS good to make sure you know the implications before doing something. It could save you a LOT of headache.

The things you learn these days.