Federal Limit on how many transfers I can make from savings?

An Announcement from My Bank ^ | 31 DEC 03 | ME

[familyofman]

"I just did 7 consecutive transfers from Savings to Checking in the amounts of $25 with my online Wells Fargo account."
That's because you did not make the transfers to an outside third party.
The rules covering accounts at banks, thrifts, & credit unions are contained in Regulation D. Reg D defines the types of accounts that can be offered and the rules governing them (primarily transaction and non-transaction). The banking regulations go back to the Federal Reservs Act of 1933 (ammended in '34 and numerous times since) and also set the "reserve requirements" needed to be maintained by the financial institutions with the Fed, or member correspondent bank.
All banks are required to disclose the requirements for each type of account they offer & more than likely gave this to you when you opened the account - very small print.
I have been, in a future life, the Deposit (money) Manager for numerous banks - as well as the CFO for a bank and have spent many years working with these aecane rules - which are not arbitrary or capricious. Go to the FDIC, FRB, or FFIEC website for a complete listing of the regs.

[Badray]

Did you know that I would be committing a crime if (at the dealership, in your case) I told you that to avoid a report to the government that you should take out less than $10,000 at a time. The very act of telling you about the law can be construed as violating the law. Isn't that just peachy?

And some people still think that we are free.

[DB]

As others stated above, my guess is it is to prevent interest bearing savings accounts from being used as checking accounts directly.

[af_vet_rr]

No problems what-so-ever!

You say that now, but what about this afternoon when the Men-In-Black show up asking questions, hmmmm?

[firewalk]

.

[Mr. K]

While I disagree with this law, I can see a possible reason for it: Money laundering transactions.

If you allowed this to go on at the speed of a computer, doing millions of transfers, a human (or a room full) could never realistically trace anything

[Protagoras]

And some people still think that we are free.

They are in denial.

[skip2myloo]

Pretty ironic isn't it ??

Obviously Lincoln didn't practice what he preached.

America would be a better place today if he truly believed and adhered to his stated ideology.

After a brief period of separation, I believe the U.S. would've reunited ultimately - but adhering to a federal framework closer to what our forefathers specified in the Constitution.

[webstersII]

" Some sort of regulation on PseudoEphedrine limited how many products containing it she could buy per transaction. "

And now that they banned ephedra yesterday, you won't be able to buy that instead for a stuffy nose either.

It's all part of the nanny state trying to take care of us.

[Protagoras]

If you allowed this to go on at the speed of a computer, doing millions of transfers, a human (or a room full) could never realistically trace anything

In a perfect world, but we can dream.

[Badray]

That quote really set off the BS detector, didn't it? Our replies were similar and less than 1 minute apart.

[Soulfull]

Some years ago the Feds came up with a non-transaction high interest money market account. Financial instutions could offer it and not have to reserve on the balance. (Reserves are required on transaction accounts, up to 6%, held in sterile accounts at the Fed) Some FIs police the accounts, some don't. Reserving costs a lot of money

[ItsTheMediaStupid]

I am with a credit union and I make many more than 6 transactions per month, no restriction. Maybe you have a higher yeild account? Or maybe the credit union is limited to this because of the amount of loans to withholdings they have?

[Mannaggia l'America]

I guess that's the price of using a Credit Union...

I use a credit union also, but prior to that I used a Big Bank and it had the same limit on the number of withdrawls on a money market account.

I can do as many electronic transfers from my money market to my checking account as I want, but I can only make 6 cash withdrawls and/or write 6 checks on it a month. So I always write checks out of my checking account and transfer the money from the MM account afterward.

I remember being made aware of this limit back in the mid-80's when I opened the account at the Big Bank, so it has existed for a long time. These used to be called "NOW" accounts (Negotiable Order of Withdrawl).

A money market account is not a really a checking account, so it shouldn't be used as such.

[skip2myloo]

The trouble is, money launderers and terrorists are quite knowledgeable of thes regulations and know how to evade them almost effortlessly.

These rules are designed specifically to eavesdrop on law-abiding, freedom-loving Americans.

Probably has more to do with tax evasion than terrorist evasion.

"Government is not reason; it is not eloquent; it is force. Like fire, it is a dangerous servant and a fearful master." -- George Washington

[ArrogantBustard]

That quote broke my BS detector ... know where I can get a good price on a new one? What was the context of that quote? I suspect it came out of the famous "Lincoln-Douglas" debates. If so, he changed his tune when he got elected, which is typical of politicians to this day.

Incidentally, if you like a good game of "what if?", try reading Harry Turtledove's WBS novels. The stand alone The Guns of the South gives an interesting portrayal of a defeated A. Lincoln, as does How Few Remain, which is the first of a series.

[lormand]

"You say that now, but what about this afternoon when the Men-In-Black show up asking questions, hmmmm?"

For their sake, they should come in great numbers, and they should come packing heat. :)

[ItsTheMediaStupid]

can do as many electronic transfers from my money market to my checking account as I want, but I can only make 6 cash withdrawls and/or write 6 checks on it a month.

Ohhh! Cash withdrawals! Yes I do have that limit! LOL what a stupid rule. All I do is transfer the required amount from savings to checking then withdraw the same amount from checking. One of the stupidest federal rules I have ran across.

[TexConfederate1861]

One more reason for SECESSION......
:)

[goodnesswins]

Ever tried to rent a video? LOL.....seems just about as bad.