Bank Accounts and Monthly Transfer Limits?

[SunnyOne]

My Cap One Checking account has a limit of 6 transfers per month.

I cannot find the answer - does this usually mean transfers out only? (Pushing Money)

I logged into a different bank and put in an order to Pull money from Cap One.

I am hoping this does not apply to my overall monthly transfer limit.

 

[Go-NoGo]

Are you sure it is a checking account and not a savings account?

Usually the 6 transfers per month apply to Savings account - it is a Federal regulation that banks have to follow
https://www.investopedia.com/this-g...ove-money-out-of-your-savings-account-4589978

You may be able to get around it by asking the bank to write you a check. Banks have been known to close accounts if you go over the 6 per month rule too many times.

 

[pb4uski]

Dunno. Have you tried asking Cap One?

 

[SunnyOne]

Very hard to get someone on the phone these days. I will check their website again (!). Thanks

Def is is a checking account and not savings. Thanks for that link!

 

[RetiredAt55.5]

My Cap One Checking account has a limit of 6 transfers per month.

I cannot find the answer - does this usually mean transfers out only? (Pushing Money)

I logged into a different bank and put in an order to Pull money from Cap One.

I am hoping this does not apply to my overall monthly transfer limit.

That's interesting. My Ally MM has a limit of 6, and they said that included all withdrawals, even moving $ from their MM to another Ally account.

However, their interest checking account has no limit.

 

[REWahoo]

Regulation D is the source of transaction limits:

Federal Reserve Board Regulation D is a federal law that says you can't make more than six withdrawals or transfers per month out of your savings account. The rules apply to money market accounts, too.

https://www.investopedia.com/this-g...ove-money-out-of-your-savings-account-4589978

Note that there are some exceptions (see link) and it does not place any limit on transfers into your account.

 

[gauss]

The following threw me for a while until I appreciated the distinction:

1) Fed Reg D applies to certain type of electronic withdrawals from a savings account.

2) Many banks, however, choose to impose a total of 6 savings withdrawals regardless of method in their terms and conditions. This is more of a business decision perhaps to give their customers simpler rules to follow.

 

[sengsational]

Every transaction counts, no matter which side initiated it. My one experience was greeted with a nasty-gram with the threat of a fine, but it went through.

 

[jpeter1093]

Def is is a checking account and not savings. Thanks for that link!

It's a money market checking account; limited by law to no more than 6/month. You CAN go over 6, but most institutions will charge you a penalty if you do and eventually close or transfer the account to a traditional checking if you do it too often.

 

[foxfirev5]

That's interesting. My Ally MM has a limit of 6, and they said that included all withdrawals, even moving $ from their MM to another Ally account.

However, their interest checking account has no limit.

This is true. I got dinged with a service charge when I transferred over 6 transactions from my Ally MM to open CDs at Ally.

 

[latexman]

Initially, my kids used to run into this a bit at our CU when topping off their checking account with a transfer from savings. For some reason, they didn't learn when I told them how to solve it, but a couple nasty-grams from the CU and a frozen account for a month, and they started making larger and fewer transfers.

 

[Go-NoGo]

Looks like the 6 withdrawals limit on savings account is going away:

The Federal Reserve Board on Friday announced an interim final rule to amend Regulation D (Reserve Requirements of Depository Institutions) to delete the six-per-month limit on convenient transfers from the "savings deposit" definition. The interim final rule allows depository institutions immediately to suspend enforcement of the six transfer limit and to allow their customers to make an unlimited number of convenient transfers and withdrawals from their savings deposits at a time when financial events associated with the coronavirus pandemic have made such access more urgent.

https://www.federalreserve.gov/newsevents/pressreleases/bcreg20200424a.htm

Edited: Ninja'ed by NJHowie in another post that I am only seeing this morning

 

[MJ]

This is true. I got dinged with a service charge when I transferred over 6 transactions from my Ally MM to open CDs at Ally.

I did that a few times forgetting to move a large sum to checking first but the few times I did go over the 6 limit, I called them and got the charge credited back.