What Are The Reasons for Withdrawal Limits for Savings Accounts

The primary reason for the limit is that banks only hold a small percentage of consumers’ deposited funds in reserve

Individual with savings account may not allow a withdraw as much as 7 consecutive times without charges per month. Exceed this limit occasionally, and your bank may decline your excess transactions or charge you a fee. Exceed this limit often, and your bank will convert your savings account to a checking account or close the account altogether.

The six-per-month limit applies to these types of savings account transactions as highlighted below,

A wire transfer,overdraft transfer, electronic fund transfer ,Third party check, debit card transaction,

    What Is the Automated Clearing House

    The Automated Clearing House (ACH) Network is an electronic funds-transfer system run by NACH

    This payment system provides ACH transactions for use with payroll, direct deposit, tax refunds, consumer bills, tax payments, and many more payment services in the United States and around the world.

    What is an overdraft

    An overdraft is an extension of loan or credit from a lending institution that is granted when an account reaches zero. The overdraft allows the account holder to continue withdrawing money even when the account has no funds in it or has insufficient funds to cover the amount of the withdrawal.

    What is a wire transfer

    wire transfer is an of funds across a network administered by hundreds of banks or transfer service agencies around the world. The transfer can also be made in cash at a cash office. Wire transfers allow for the individualized transmission of funds from single individuals or entities to others while still maintaining the efficiencies associated with the fast and secure movement of money. Wire transfers allow people in different geographic locations to safely transfer money to locales and financial institutions around the globe.

         

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