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Color me surprised

D

Dari

Lifer
Apparently there is a new law that restricts how much you can transfer between your savings account and checking account. That negates the advantages of online banking. Six times a monthly cycle is too little. I guess this'll show Al Qaeda:roll:
 
Originally posted by: johngute
link? details?
Click to expand...

I've been having problems transferring from my home the past couple of days and a check bounced. The citibank website tells me there are restrictions on the transfers from savings to checking. I called Citibank and they told me it was because of a law. I asked them to send me the details. But, from now on, you cannot do more than six transfers between your savings and checking via internet OR phone (per billing cycle). This sucks.
 
That law has been in effect for a quite a while (early 80s?) I have no idea what Al Qaeda has to do with this.

It does not affect ATM or teller transfers.
 
Originally posted by: johngute
i found this, your limited to 6 transfers per month by law.
why do you need to transfer more than that?

link
Click to expand...

Convenience? In addition, you can have strict control on your account. Having zero dollars in your checking account makes sure that you don't pay for anything you had no intention of paying for.
 
Originally posted by: johngute
i found this, your limited to 6 ach transfers per month by law.
why do you need to transfer more than that?


edit: better link
Click to expand...

Because I like to transfer freely between both accounts - what's the BFD? I find the limitation to be arbitrary.
 
Is it a high yield (online) savings account?

The FDIC restricts the number of transactions in those types of accounts in order to limit the FDIC's exposure to risk due to high churn. It has nothing to do with Al Qaeda.
 
Originally posted by: sciencewhiz
Is it a high yield (online) savings account?

The FDIC restricts the number of transactions in those types of accounts in order to limit the FDIC's exposure to risk due to high churn. It has nothing to do with Al Qaeda.
Click to expand...

How long has this law (ruling) been in effect?
 
Originally posted by: Ryan
Originally posted by: johngute
i found this, your limited to 6 ach transfers per month by law.
why do you need to transfer more than that?


edit: better link
Click to expand...

Because I like to transfer freely between both accounts - what's the BFD? I find the limitation to be arbitrary.
Click to expand...
Regulation D

The reason why banks give you "free" services (checking, ATMs, etc) is because they make money from having your money in their possession. By giving you unfettered, instantaneous withdrawals from you saving account, you create uncertainly and the potential for a huge turnover (see: run on a bank.)

Don't like it? Don't keep you money in the bank. Or be prepared to pony-up some massive fees.
 
Originally posted by: johngute
i found this, your limited to 6 ach transfers per month by law.
why do you need to transfer more than that?


edit: better link
Click to expand...

This explains the rationale behind the limit. It makes some sense though given the speed of other movements of money through the banking system it seems odd to leave this particular speed bump in place. I guess that since this regulation benefits the banks there has been no clamor to change it.
 
Originally posted by: Dari
Originally posted by: sciencewhiz
Is it a high yield (online) savings account?

The FDIC restricts the number of transactions in those types of accounts in order to limit the FDIC's exposure to risk due to high churn. It has nothing to do with Al Qaeda.
Click to expand...

How long has this law (ruling) been in effect?
Click to expand...

Almost 28 years.
 
Originally posted by: Dari
Originally posted by: sciencewhiz
Is it a high yield (online) savings account?

The FDIC restricts the number of transactions in those types of accounts in order to limit the FDIC's exposure to risk due to high churn. It has nothing to do with Al Qaeda.
Click to expand...

How long has this law (ruling) been in effect?
Click to expand...

1980. The difference is that high yield savings accounts with no minimum deposit is a recent phenomenon, so most people never came across the limit. See johngute's link.
 
Originally posted by: sciencewhiz
Originally posted by: Dari
Originally posted by: sciencewhiz
Is it a high yield (online) savings account?

The FDIC restricts the number of transactions in those types of accounts in order to limit the FDIC's exposure to risk due to high churn. It has nothing to do with Al Qaeda.
Click to expand...

How long has this law (ruling) been in effect?
Click to expand...

1980. The difference is that high yield savings accounts with no minimum deposit is a recent phenomenon, so most people never came across the limit. See johngute's link.
Click to expand...

The internet wasn't around in 1980.
 
Originally posted by: Dari
Originally posted by: sciencewhiz
Originally posted by: Dari
Originally posted by: sciencewhiz
Is it a high yield (online) savings account?

The FDIC restricts the number of transactions in those types of accounts in order to limit the FDIC's exposure to risk due to high churn. It has nothing to do with Al Qaeda.
Click to expand...

How long has this law (ruling) been in effect?
Click to expand...

1980. The difference is that high yield savings accounts with no minimum deposit is a recent phenomenon, so most people never came across the limit. See johngute's link.
Click to expand...

The internet wasn't around in 1980.
Click to expand...

Telephones were. The internet is viewed as a subsystem of the telephony system for many laws and regulations.

You're being exceptionally thick about this.
 
Originally posted by: Dari
Originally posted by: sciencewhiz
Originally posted by: Dari
Originally posted by: sciencewhiz
Is it a high yield (online) savings account?

The FDIC restricts the number of transactions in those types of accounts in order to limit the FDIC's exposure to risk due to high churn. It has nothing to do with Al Qaeda.
Click to expand...

How long has this law (ruling) been in effect?
Click to expand...

1980. The difference is that high yield savings accounts with no minimum deposit is a recent phenomenon, so most people never came across the limit. See johngute's link.
Click to expand...

The internet wasn't around in 1980.
Click to expand...

bwhaha


http://en.wikipedia.org/wiki/History_of_the_Internet


http://en.wikipedia.org/wiki/AOL aol started in the 80's..


 
Originally posted by: cKGunslinger
Originally posted by: Dari
Originally posted by: sciencewhiz
Originally posted by: Dari
Originally posted by: sciencewhiz
Is it a high yield (online) savings account?

The FDIC restricts the number of transactions in those types of accounts in order to limit the FDIC's exposure to risk due to high churn. It has nothing to do with Al Qaeda.
Click to expand...

How long has this law (ruling) been in effect?
Click to expand...

1980. The difference is that high yield savings accounts with no minimum deposit is a recent phenomenon, so most people never came across the limit. See johngute's link.
Click to expand...

The internet wasn't around in 1980.
Click to expand...

Telephones were. The internet is viewed as a subsystem of the telephony system for many laws and regulations.

You're being exceptionally thick about this.
Click to expand...

I guess it all makes sense now. But I hate regression. It's been almost five years since I step foot into a bank. It's not something I'm looking forward to from now on. I guess I'll have to change my accounting habits to avoid the bank.
 
The law says nothing about the internet, but it is invariably the online banks that do no have a minimum deposit requirement, and thus fall into this category.
 
Several years ago we sold our home and dumped a bunch of cash into a savings account. As we bought the new home and started moving money to the checking accounts every time we wanted to buy furniture or other major purchases, we ran into that problem and had to convert the savings into checking so we could keep moving cash as needed. We just don't use any bank cards or checks for the other account.
 
Originally posted by: Dari
Apparently there is a new law that restricts how much you can transfer between your savings account and checking account. That negates the advantages of online banking. Six times a monthly cycle is too little. I guess this'll show Al Qaeda:roll:
Click to expand...

huh?

6x xfer from money market to checking has been in effect since late last century. but w/my bank, if you went over that 6 count, you get charge $10 each time.

6x max could be an citibank policy and not law?
 
Originally posted by: Dari
Originally posted by: johngute
Having zero dollars in your checking account makes sure that you pay lots of overdraft fees
Click to expand...

fixed
Click to expand...

I've never had that problem and I've been with citibank for 10 years. I'm prudent with my money.
Click to expand...

The prudent thing to do would have your checking backed up with a credit card to protect against overdraft.
 
Originally posted by: johngute
Having zero dollars in your checking account makes sure that you pay lots of overdraft fees
Click to expand...

fixed
Click to expand...

bingo.


ps. enable over draft protection. it still cost moneyu but much less than the 70+ over draft fees.

The prudent thing to do would have your checking backed up with a credit card to protect against overdraft.
Click to expand...

that involves its own costs.
 
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