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Show savings accounts transaction limits in Online Banking

Both my kids are in college and learning how to manage their money. Their initial instinct was to keep most of their money in their savings accounts and then do a mobile transfer to checking when they need money to spend. Just in the past month or two, both have been penalized for exceeding the allowed limit of 6 transactions. Why is there a limit? Why are their multiple penalties with no notification (like email or text)? Living on tight budgets and trying to only spend what was necessary should not incur penalties. How about implementing a warning system at least?

14 Comments
Community Manager
Status changed to: On the Radar

Hi @Snale We agree with you about a warning system- there’s a counter when you transfer within online banking, but it’s not yet available in the app which is why it sounds like your kids were impacted by the fees. The reason for the limit and associated fee is this is one of those regulations (Regulation D) we must abide by- which limits the number of transfers you can make OUT of a savings account.

 

Our mobile team has a Reg D transfer counter on the radar to add to the mobile app, but the timing isn’t planned out yet. We agree having the transfer counter in mobile too would be so valuable so we’ll be sure to share your comments with our mobile team.

 

In the meantime, please keep encouraging your kids to keep a savings account balance, that’s awesome… we would recommend transferring INTO savings each week/month/paycheck instead of OUT of savings to avoid further frustrating fees. JohnS

Sightseer

I've never understood the reason for that regulation myself. I understand what it is (a federal regulation mandated on all financial institutions), but have never understood why it is there (it would seem to me just another money-grab excuse financial institutions can use to easily gain extra, unnecessary income from their account holders -- perhaps put into law by input from lobbyists paid by the big banks). Either way, it is irritating out of principle that I wouldn't have unlimited access to my own money at any time without penalty.

Tourist

Six transactions is enough for anybody.  If a warning is required, than give them a warning...

Sightseer

I too live on a tight budget, and to solve the problem your children currently face would advise they use the checking account primarily and transfer money that is to be saved, once circumstances afford the knowledge the money will not be spent in the foreseeable future, into their savings account. Though it is unfortunate to be struck while down, those future instances go from paying a fee to additional savings.

Sightseer

When you transfer funds out of Thor savings our does say "2 transfers or if 6 allowable this month" before you finalize the transfer. But I can see how you might not read it because it doesn't stand out as a warning, it's just text on the page. 

Sightseer

I have had multiple family members hit with this penalty, there should either be better information given when a account is opened or email notifications when it occurs or better yet a warning before you go so submit it that says this transfer will incur a penalty if completed with a link to the policy.

Sightseer

I recently had the same issue happen. I was told by a BECU teller if you go into the bank or use the ATM to transfer money from your savings, you want get penilized. I hope this is helpful. 

Sightseer

I agree. Have been dinged with that too. It does state it on the transfer page, but a reminder would be good. Also less than a bounced check fee without having to open a line of credit. 

Sightseer

I agree that this is way too low for a college student.  They have no idea when new supplies are going to be necessary for a particular class, outing, etc.  Nor should it matter.  I think a limit of 2 transactions per day, as many ATMs limit, would be useful.

Adventurer

I agree with you on doing away with the limits on transfers that are now in place. I am now on a very tight budget, having had to talk with a credit counselor. She suggested setting up a special savings account in which I would put future expenditures, so they would NOT be in my checking account where I would see 'money available!' I have already made several transfers out of necessity, for I needed to spend what I had saved for. Why should there be limits on this? I'd like to hear management's view on this. Thank you, Snale, for bringing it up.