online banking transfers - Tilted Forum Project Discussion Community

MontanaXVI · 07-28-2005, 12:19 PM

Here is a problem I ran into recently and had it not been with my good long standing history with the credit union I could have been deep in some fees on my account.

I have been with my work credit union for close to 10 years or so give or take a few years (I have been at my employer for 12 years as of next week I opened the account not long after getting employment) Well as time went on I added my gf to the account and eliminated hers which was also at the same credit union. Well with us both having direct deposit the majority of our check goes into the savings and we just transfer chunks of it at a time to have in checking for bills, auto payments and the such. Well over the weekend we had some expenses clearing, the usual debit card use for shopping, dinner entertainment and the such, well we had not looked at the account and seen that we were going to be short so we did not transfer any money over to cover. Today I get a call at work from the gf stating we were in the hole and that there were a ton (to the tune of about $200 total) of insufficient funds charges on the account. I as suprised to hear also that they had not used the savings (which is in our bank rules I guess you could say) as the overdraft protection like they have done a couple times in the past. The total amount in savings was 5 TIMES more than the charges, and the penalties fees COMBINED, so I was very upset over all this. After a few calls to the branch manager and the tellers we were told that you have 6 online transfers per month mandated by the government and no way around it. We knew this though but were more shocked to hear that these transfers counted against any overdraft charges that may be needed as well. So for those of you not following along we had logged onto our banks website 4 times in the last month and moved money from savings to checking to cover, well the bank used our last 2 transfers for the month then sat there looking at all the money and said with us having hit our 6 transactions they were not able to access the money in savings to use for overdraft. I was flabbergatsed at this news and was very upset thinking about all the fees I was now going to have to pay. Another call to the branch manager explaining everything to her and all was cleared up she removed all the penalties from the account and was going to debit the account for the transfers that had been rejected for IF, due to us having been with them for so long and she did not want to lose a customer (or the money). So kudos to her on the GREAT customer service.

So those of you who do online banking and may have a savings account that is used for overdraft might want to check into this and make sure you too do not get hit like this. They told us the limit of 6 is imposed by the federal government and there is nothing you can do about it, except to do transfers in person or at an ATM, but online you are limited to 6 a month. Then ask if it applies to your overdraft as well it just might help you in the long run to know all this.

ShaniFaye · 07-28-2005, 12:25 PM

hmmm is this some regulation for credit unions? Because I make over 6 transfers a month :huh:

MontanaXVI · 07-28-2005, 01:06 PM

It very well may be, I have never checked into the legalities of it all but I know we had an issue a couple years ago with the amount of transfers so I knew about the 6 per month limit.

Redlemon · 07-28-2005, 01:16 PM

I just checked with my bank (not a credit union, USA-based), and found the following:

Quote:

Federal Regulations limit the number of transfers you can do between accounts electronically to six (6) in any calendar month. Once you have reached that limit, you will need to transfer by some other means, such as an ATM or in your local branch.

Unfortunately, it didn't cite the source of the regulation, or even better the reasons behind it.

ShaniFaye · 07-28-2005, 01:30 PM

hmmm maybe its only linked accounts that fall into it...because I transfer money into my my daughters grandmothers bank account...at the same bank several times, plus transfers between my own savings account/checking account. Maybe her transfers dont count in this regulation

cyrnel · 07-28-2005, 01:43 PM

ShaniFaye,

Checking accounts, or accounts not specifically tagged as "savings", should not have this limitation. I don't know the official designation but there is a difference beyond marketing-speak.

I ran into it myself after linking a CU savings account to my PayPal account. Used it infrequently for a year, then I had a month of twelve or so small purchases. Payment 7-12 bounced because I'd hit the magic limit on monthly transfers. That was fun to correct. Expensive, too. The best part is many of the tellers aren't aware of the cause and they just see it as NSF, so you're instantly on the defensive.

I was told the motivation is so feds can monitor laundering. Something about how savings accounts aren't reported on as frequently. Can't say if it's correct or not.

Banking is a weird animal.

MontanaXVI · 07-28-2005, 02:01 PM

good find Red, just wanting everyone to know so they don't get hit.

greeneyes · 07-28-2005, 03:15 PM

This is a federal regulation. Some banks just cut you off at six and some charge you for every transfer over six.

The reason this is in effect is because:

It's not a checking account, you shouldn't treat it like one

If you could treat your savings like a checking account, everyone would open savings because the interest rate is better

Banks are required to keep a certain amount "on reserve" and savings and time-deposit (CoD's, IRA's) are one of the ways they do that

So there you have it, folks.

ShaniFaye · 07-28-2005, 04:39 PM

ahhhh thanks greeneyes....no I know Im not nuts

hows the job going btw?

greeneyes · 07-28-2005, 05:52 PM

Quote:

Originally Posted by ShaniFaye

ahhhh thanks greeneyes....no I know Im not nuts

hows the job going btw?

Love, love, love my job. Wake up every morning and want to go to work... well, after I have morning sex, that is.

But yeah, could not ask to work for a better company and I have a manager that I can learn so much from, it's staggering.

Redlemon · 07-29-2005, 05:09 AM

Quote:

Originally Posted by MontanaXVI

good find Red, just wanting everyone to know so they don't get hit.

Much appreciated, it was news to me. And thanks greeneyes for explaining the reasons!

NoSoup · 07-29-2005, 07:38 AM

Hmmm.... Maybe my CU found a way around it somehow.

I was under the impression that the limit for 6 transfers before being unable to complete them or charged for them only applies (federally) to Money Market Accounts - accounts with higher interest rates simply because it discourages the use of withdrawals.

I personally utilize my savings just like a checking - I probably make at least a 20 transfers in and out of it per month, likely a lot more. I also have a checking account and a money market account at the same institution, and am only charged if I go over 6 online transfers with the money market.

MontanaXVI · 07-29-2005, 01:21 PM

Quote:

Originally Posted by NoSoup

Hmmm.... Maybe my CU found a way around it somehow.

I was under the impression that the limit for 6 transfers before being unable to complete them or charged for them only applies (federally) to Money Market Accounts - accounts with higher interest rates simply because it discourages the use of withdrawals.

I personally utilize my savings just like a checking - I probably make at least a 20 transfers in and out of it per month, likely a lot more. I also have a checking account and a money market account at the same institution, and am only charged if I go over 6 online transfers with the money market.

I am sure it only applies to online banking transfers, I was told that using a phone transfer or ATM or in person does not affect the limits.

cyrnel · 07-29-2005, 01:27 PM

I understood it only applied to electronic transfers. In my case, it was PayPal, but they mentioned EFT's or other non-signature transfers would also count. greeneyes, is there more? Is some of this at the bank's discretion?

NoSoup · 07-29-2005, 03:46 PM

Quote:

Originally Posted by MontanaXVI

I am sure it only applies to online banking transfers, I was told that using a phone transfer or ATM or in person does not affect the limits.

The transactions I was speaking of are all online banking transfers....

greeneyes · 07-30-2005, 04:46 AM

Ok! Get ready, it's going to be a long one!

Money Market Accounts

You may make unlimited withdrawals or transfers to other accounts housed at the same institution in person or at an ATM from your money market account. However, federal regulations limit third-party transactions or pre-authorized transfers from your account (including overdraft transfers) or transfers made by personal computer (including online banking or bill payment services) or telephone (including faxes or data transmission) to six per month, no more than three of which may be made by check, draft, or debit card. If you exceed this limitation on a regular basis, the bank is required to convert your account to another account that permits unlimited check writing privileges. (*)

Savings Accounts

Exact same information minus the check writing.

Charges may apply when transfer limits are exceeded. The reason I say may is because I have a very good customer who from time to time exceeds his transfer limit. With over three million in deposit accounts and loans with our bank, am I really going to charge him a $5 fee? No, I'm not. Also, some banking "packages" waive certain fees and it is the bank's responsibility to monitor these accounts and see when you are abusing them. If such abuse occurs, you can see from above that the account would need to be converted.

Hope that clears some things up!

(*) This information is taken directly from my Federal Regulations Guidebook, update February 1st, 2005.

07-28-2005, 12:19 PM	#1 (permalink)
MontanaXVI Junkie Location: Go A's!!!!	online banking transfers Here is a problem I ran into recently and had it not been with my good long standing history with the credit union I could have been deep in some fees on my account. I have been with my work credit union for close to 10 years or so give or take a few years (I have been at my employer for 12 years as of next week I opened the account not long after getting employment) Well as time went on I added my gf to the account and eliminated hers which was also at the same credit union. Well with us both having direct deposit the majority of our check goes into the savings and we just transfer chunks of it at a time to have in checking for bills, auto payments and the such. Well over the weekend we had some expenses clearing, the usual debit card use for shopping, dinner entertainment and the such, well we had not looked at the account and seen that we were going to be short so we did not transfer any money over to cover. Today I get a call at work from the gf stating we were in the hole and that there were a ton (to the tune of about $200 total) of insufficient funds charges on the account. I as suprised to hear also that they had not used the savings (which is in our bank rules I guess you could say) as the overdraft protection like they have done a couple times in the past. The total amount in savings was 5 TIMES more than the charges, and the penalties fees COMBINED, so I was very upset over all this. After a few calls to the branch manager and the tellers we were told that you have 6 online transfers per month mandated by the government and no way around it. We knew this though but were more shocked to hear that these transfers counted against any overdraft charges that may be needed as well. So for those of you not following along we had logged onto our banks website 4 times in the last month and moved money from savings to checking to cover, well the bank used our last 2 transfers for the month then sat there looking at all the money and said with us having hit our 6 transactions they were not able to access the money in savings to use for overdraft. I was flabbergatsed at this news and was very upset thinking about all the fees I was now going to have to pay. Another call to the branch manager explaining everything to her and all was cleared up she removed all the penalties from the account and was going to debit the account for the transfers that had been rejected for IF, due to us having been with them for so long and she did not want to lose a customer (or the money). So kudos to her on the GREAT customer service. So those of you who do online banking and may have a savings account that is used for overdraft might want to check into this and make sure you too do not get hit like this. They told us the limit of 6 is imposed by the federal government and there is nothing you can do about it, except to do transfers in person or at an ATM, but online you are limited to 6 a month. Then ask if it applies to your overdraft as well it just might help you in the long run to know all this. __________________ Spank you very much

07-28-2005, 12:25 PM	#2 (permalink)
ShaniFaye Submit to me, you know you want to Location: Lilburn, Ga	hmmm is this some regulation for credit unions? Because I make over 6 transfers a month :huh: __________________ *I want the diabetic plan that comes with rollover carbs. I dont like the unused one expiring at midnite!!*

07-28-2005, 01:06 PM	#3 (permalink)
MontanaXVI Junkie Location: Go A's!!!!	It very well may be, I have never checked into the legalities of it all but I know we had an issue a couple years ago with the amount of transfers so I knew about the 6 per month limit. __________________ Spank you very much

07-28-2005, 01:30 PM	#5 (permalink)
ShaniFaye Submit to me, you know you want to Location: Lilburn, Ga	hmmm maybe its only linked accounts that fall into it...because I transfer money into my my daughters grandmothers bank account...at the same bank several times, plus transfers between my own savings account/checking account. Maybe her transfers dont count in this regulation __________________ *I want the diabetic plan that comes with rollover carbs. I dont like the unused one expiring at midnite!!*

07-28-2005, 01:43 PM	#6 (permalink)
cyrnel Adequate Location: In my angry-dome.	ShaniFaye, Checking accounts, or accounts not specifically tagged as "savings", should not have this limitation. I don't know the official designation but there is a difference beyond marketing-speak. I ran into it myself after linking a CU savings account to my PayPal account. Used it infrequently for a year, then I had a month of twelve or so small purchases. Payment 7-12 bounced because I'd hit the magic limit on monthly transfers. That was fun to correct. Expensive, too. The best part is many of the tellers aren't aware of the cause and they just see it as NSF, so you're instantly on the defensive. I was told the motivation is so feds can monitor laundering. Something about how savings accounts aren't reported on as frequently. Can't say if it's correct or not. Banking is a weird animal. __________________ There are a vast number of people who are uninformed and heavily propagandized, but fundamentally decent. The propaganda that inundates them is effective when unchallenged, but much of it goes only skin deep. If they can be brought to raise questions and apply their decent instincts and basic intelligence, many people quickly escape the confines of the doctrinal system and are willing to do something to help others who are really suffering and oppressed." -Manufacturing Consent: Noam Chomsky and the Media, p. 195 Last edited by cyrnel; 07-28-2005 at 01:46 PM..

07-28-2005, 02:01 PM	#7 (permalink)
MontanaXVI Junkie Location: Go A's!!!!	good find Red, just wanting everyone to know so they don't get hit. __________________ Spank you very much

07-28-2005, 03:15 PM	#8 (permalink)
greeneyes Insane Location: Charlotte, NC	This is a federal regulation. Some banks just cut you off at six and some charge you for every transfer over six. The reason this is in effect is because: It's not a checking account, you shouldn't treat it like one If you could treat your savings like a checking account, everyone would open savings because the interest rate is better Banks are required to keep a certain amount "on reserve" and savings and time-deposit (CoD's, IRA's) are one of the ways they do that So there you have it, folks. __________________ Put the blame on me So you don't feel a thing Go on and save yourself Take it out on me

07-28-2005, 04:39 PM	#9 (permalink)
ShaniFaye Submit to me, you know you want to Location: Lilburn, Ga	ahhhh thanks greeneyes....no I know Im not nuts hows the job going btw? __________________ *I want the diabetic plan that comes with rollover carbs. I dont like the unused one expiring at midnite!!*

07-29-2005, 07:38 AM	#12 (permalink)
NoSoup Non-Rookie Location: Green Bay, WI	Hmmm.... Maybe my CU found a way around it somehow. I was under the impression that the limit for 6 transfers before being unable to complete them or charged for them only applies (federally) to Money Market Accounts - accounts with higher interest rates simply because it discourages the use of withdrawals. I personally utilize my savings just like a checking - I probably make at least a 20 transfers in and out of it per month, likely a lot more. I also have a checking account and a money market account at the same institution, and am only charged if I go over 6 online transfers with the money market. __________________ I have an aura of reliability and good judgement. Just in case you were wondering...

07-29-2005, 01:27 PM	#14 (permalink)
cyrnel Adequate Location: In my angry-dome.	I understood it only applied to electronic transfers. In my case, it was PayPal, but they mentioned EFT's or other non-signature transfers would also count. greeneyes, is there more? Is some of this at the bank's discretion? __________________ There are a vast number of people who are uninformed and heavily propagandized, but fundamentally decent. The propaganda that inundates them is effective when unchallenged, but much of it goes only skin deep. If they can be brought to raise questions and apply their decent instincts and basic intelligence, many people quickly escape the confines of the doctrinal system and are willing to do something to help others who are really suffering and oppressed." -Manufacturing Consent: Noam Chomsky and the Media, p. 195

07-30-2005, 04:46 AM	#16 (permalink)
greeneyes Insane Location: Charlotte, NC	Ok! Get ready, it's going to be a long one! Money Market Accounts You may make unlimited withdrawals or transfers to other accounts housed at the same institution in person or at an ATM from your money market account. However, federal regulations limit third-party transactions or pre-authorized transfers from your account (including overdraft transfers) or transfers made by personal computer (including online banking or bill payment services) or telephone (including faxes or data transmission) to six per month, no more than three of which may be made by check, draft, or debit card. If you exceed this limitation on a regular basis, the bank is required to convert your account to another account that permits unlimited check writing privileges. () Savings Accounts* Exact same information minus the check writing. Charges may apply when transfer limits are exceeded. The reason I say may is because I have a very good customer who from time to time exceeds his transfer limit. With over three million in deposit accounts and loans with our bank, am I really going to charge him a $5 fee? No, I'm not. Also, some banking "packages" waive certain fees and it is the bank's responsibility to monitor these accounts and see when you are abusing them. If such abuse occurs, you can see from above that the account would need to be converted. Hope that clears some things up! (*) This information is taken directly from my Federal Regulations Guidebook, update February 1st, 2005. __________________ Put the blame on me So you don't feel a thing Go on and save yourself Take it out on me