Savings account withdrawal controlled by government?
Topic: Devising a research question
July 18, 2019 / By Hughie Question:
I just learned today that I am only allowed to make 6 withdrawals out of my savings account per month. The clerk at my bank told me that it's a government regulation. I am in disbelief! Why would government care how many withdrawals I make out of my savings? It's my money. Can someone please explain this to me.
Just did a little research. It is a federal regulation. The question still remains - why can't I make more then 6 withdrawals ? Why is the number 6 and not 10 ? And what is a purpose of this regulation?
Best Answers: Savings account withdrawal controlled by government?
Erle | 2 days ago
the other two guys covered the gist of it, it is because the pooled savings funds are expected to become part of the longer term lending pool so the gov't devised this cap for true "savings" accounts. As someone who has been a bank manager for the past five years though I can tell you that many people find that out the hard way, which is why I made it a mission to have all my bankers go over that as part of their presentation of the terms and agreements.
👍 112 | 👎 2
Did you like the answer? Savings account withdrawal controlled by government?
Share with your friends
We found more questions related to the topic: Devising a research question
Originally Answered: Better Banks: Do you get charged for transfering money from savings account to checking account?
You may be required to keep a minimum balance in your savings account in order to avoid monthly service charges. So long as you keep that amount in your savings account, I am not aware of any bank that charges you a fee to do an on line transfer from savings to checking or vice versa.
When you opened your account, you were given the option of applying for a small line of credit that is used in case you accidentally overdraw your checking account. If you did this, the bank ran a credit check on you and either approved or denied your request. All they are saying is that if your CHECKING account becomes overdrawn, you will be charged $19.95 for any transaction you made that caused your account to reach a negative balance, plus a $19.95 charge for each additional transaction that causes the account to go higher into the red.
Simply transferring money from your savings account to your checking account would not cause this to happen; in fact it would have the opposite effect.
Im sure it's the lending pool thing as mentioned.
Also everyone would just use their savings as a checking account because it has a higher yield. Youd want to keep every penny possible in it everytime it is compounded to make max interest.
Theres a reason you get paid more to keep money in it (and why its limited on withdrawls), because they want that money to be there for trading so they can give loans and make money with your money.
👍 40 | 👎 -6
It isn't a good idea to make so many withdrawals from your savings account. It is much better to do one lump withdrawal to checking, and to do all other withdrawals (cash, bill payments, checks) from checking. Another good idea would be for your deposits to go to checking, and make regular transfers to savings.
There are plenty of reasons why this may be so. One that I recall readily is that this prevents the bank (which typically doesn't carry all of its holdings as actual cash) from being made insolvent because its account holders withdrew too much.
Yes, it is your money. You're free to stuff it under your mattress if you feel it is better than a savings account that earns interest.
I'm certain you'll get better answers from those who better understand the finance industry.
👍 39 | 👎 -14
That's ONLINE TANSFERS from savings to checking. The purpose is to protect the pool of money used for lending. BTW they pay you for that in the way of interest. You don't like it hide it under your bed.
👍 38 | 👎 -22
Originally Answered: If I have both a savings account and checking, can I withdraw from the savings if the checking is overdrawn?
if you do not have to keep a minimum in either account, ask your bank about overdraft protection. That is, you pay a certain amount into a "special holding area" of sorts, where if you write checks and do not have enough in your checking to cover them, they will start taking out of your overdraft protection so they will not bounce. Until you can move money from your savings or figure something out (like deposit more money).
It sounds like you need to buckle down on your finances so you can meet your bills on time. Pay them the same time every month and use your head when drawing money out of your account, to know what bills will be coming due so you save enough in there to pay them.
If you get direct deposit of your paycheck from your job, you might want to look into setting up automatic payment of bills each month...you will know what day they are deducted from your account and you will also know what money must be available. You can set this up even with a deposit of your paycheck by you.