I got my eyes opened a little more today by my bank.

[poikilotrm]

So I have, ahem had, a savings and a checking account. I would put the majority of my cash in savings, and draw from checking as needed. If needed, I would draw from my savings account and place it in checking.

I went to get my transmission worked on today. I needed cash, so I went to do a transfer from savings to checking, just as I have many times before. The app wouldn't let me.

I called the bank, and thanks to something called Rule D, a depositor may only withdraw from his savings account 4 times per twelve month period. They did nothing to notify me, they just froze my account and moved to strike it. I had never heard of this rule, ever.

Thanks to computers, they can take everybody's cash at will, and they have zero problem with doing it. I consider this foreshadowing.

[CanOfWhooppass]

I have a simular setup but dont seem to have rule D. Is it a bank policy or tied to a specific type of account?

[mars]

The people in Greece had something similar to them. Not everybody could withdraw money from their accounts. Just think if this happened in America.

[O2HeN2]

My credit union only allows four (?) transfers per month from savings via their web interface. However, I can go in and transfer more often in person.

Here's rule D; looks like the limit is six PER MONTH for this particular credit union: Rule D

And my credit union (click on the "Article" tab). Yhea, it's only for "remote" transfers...

O2

[CanOfWhooppass]

I wonder if it's intent is to make a large number of under 10k transfers difficult for money launderers?

[poikilotrm]

I have a simular setup but dont seem to have rule D. Is it a bank policy or tied to a specific type of account?

The lady said it was under federal law.

[whiterussian1974]

I have a simular setup but dont seem to have rule D. Is it a bank policy or tied to a specific type of account?

The lady said it was under federal law.

The exact details are bank specific, but the laws' intent was to prevent Bank Runs and stabilize deposit ammounts so that the liquid money supply is more stable for Institutional Investing.

The Fed doesn't want banks to b/c overleveraged and unable to satisfy their daily settlements. Thus limiting the chance of bank failure/bailout.

[Fulliautomatix]

What do you mean by "moved to strike it"? As other mentioned above, I've heard of limiting the number of withdrawals from savings, but it is usually a couple transactions in a month, not in a year.

I also came across a strange banking policy via my app recently, evidently you are only allowed to DEPOSIT up to $10k in a given month. How strange. You'd think a bank would want as much money as frequently as they could get their hands on it.

[doubloon]

I have a simular setup but dont seem to have rule D. Is it a bank policy or tied to a specific type of account?

The lady said it was under federal law.

It is and it's stupid as f*k.

Been there done that, only way to do a transfer at that point in that month is to physically show up at the bank.

[poikilotrm]

What do you mean by "moved to strike it"?

They closed it. The 10K thing has to do with money laundering. Yet another wonderful benefit of the WOD.

[whiterussian1974]

The 10K thing has to do with money laundering. Yet another wonderful benefit of the WOD.

Actually WoT.
Dealers and Mules know how to open Commercial accts to launder. But 'upstarts' don't cover transactions w faux service market.
Soon, only criminals will be allowed to transfer money because they are the only ones able to hire lawyers and accountants to naviagate the Regulations.
Yet Fed and IRS want to change to 'cashless society' so that all transactions are monitored, taxed, regulated.
Go figure!

[Fulliautomatix]

What do you mean by "moved to strike it"?

They closed it. The 10K thing has to do with money laundering. Yet another wonderful benefit of the WOD.

That's ridiculous. Its regulations like this that make it impossible for businesses to carry out their base services! Someone up the chain has now decided that the cost of compliance and risk of federal penalties outweighs the bad will and loss of revenues generated by canceling customer accounts for malum prohibitum bullshit.

[whiterussian1974]

The 10K thing has to do with money laundering. Yet another wonderful benefit of the WOD.

Actually WoT.
Dealers and Mules know how to open Commercial accts to launder. But 'upstarts' don't cover transactions w faux service market.
Soon, only criminals will be allowed to transfer money because they are the only ones able to hire lawyers and accountants to naviagate the Regulations.
Yet Fed and IRS want to change to 'cashless society' so that all transactions are monitored, taxed, regulated.
Go figure!

That's ridiculous. Its regulations like this that make it impossible for businesses to carry out their base services! Someone up the chain has now decided that the cost of compliance and risk of federal penalties outweighs the bad will and loss of revenues generated by canceling customer accounts for malum prohibitum bullshit.

As I stated: Businesses use Commercial Acct's. So different rules.
Once you supply your Tax ID (EIN), DBA, State Sales Tax Permit, Filed LLC/other Application, etc; then you aren't bound by the same Laws as Personal Acct's.

[Fulliautomatix]

My comment was based upon the bank being the business whose services were being impeded by regulations, never mind the consumer.