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Restrictions on savings account withdrawals in New York

On Behalf of | Jun 22, 2021 | Banking And Finance

Owning a savings account offers incentives to make your money work for you by providing higher interest rates than many checking accounts do. Federal Reserve Board Regulation D limits your ability to transfer or withdraw money from your savings and money market accounts. Customers often find out about withdrawal limits the hard way when they are forced to dip into their savings accounts.

Loopholes exist for getting around federal limits

Banking and finance law provide options to avoid the penalties and fees if you need to make more than six withdrawals. Recently, the Federal Reserve awarded banks with special provisions that allow discretion on whether to impose fees and penalties on the six-withdrawal limit. The Federal Reserve committee may change this exception in the future.

Asking a bank teller to move your money may help you avoid fees. ATM withdrawals often exempt the fees as well. If you need to make a seventh withdrawal, try requesting a check from the bank to cover your needs. These types of transactions fall under exceptions to the six-withdrawal limit. However, banks reserve the right to set their own restrictions. Contact your bank’s customer service department to avoid any penalties or fees.

A little preparation can go a long way toward helping you avoid a fee. Pay bills from your checking account, and make one lump sum withdrawal each month from your savings to cover the cost. Keep your savings account in the black by using it only for emergencies or bills that occur annually.

Getting assistance to manage your finances

Managing your finances often requires you to understand loopholes and legal requirements for ensuring you get the appropriate consideration from banking institutions. Talking with an attorney about your financial needs ensures you get advice that serves your best interests.