If you have a savings account, you probably know all the ins and outs of the account, but did you know you could only make 6 transfers out each billing cycle? Exceeding that transfer limit could even get you fined.
Different banks will have different fees that’ll punish you for going over your withdrawal limit. Some banks will give you the option to avoid the fee by having a large minimum balance. The only safe bet is to sign up with an account that offers unlimited overdraft protection.
American Express® High Yield Savings Account - You earn 0.50% interest rate along with no minimum deposits or monthly fees. Amex High Yield Savings account has been my favorite Hub account for the past 7 years. Using this account to Pull/Push your money is absolutely necessary when you have many accounts. Here's why:
*No dollar limitations for ACH transfers - When you find a top bank rate account, you don't want to be limited to just $5K or $10K transfers. Amex Savings will let you transfers as much as you want whether you are pulling or pushing money from and to an external bank account.
*1 to 2 business days ACH transfers speed - With top-notch user interface, you get your money to another external account or pull money from another bank account within a day or two.
*No loss of interest during transfers - On the day you initiate your transaction on the high yield savings account website, the funds will be reflected in your Current Balance and begin earning interest.
Some other features from American Express High Yield Savings Account include Free Wire Transfers, 3 maximum linked accounts, and maximum 6 ACH withdrawals per month.
Savings account offers are frequently updated. Find the best nationwide Savings/Money Market rates here, and the best Savings account bonuses here. The Axos Bank and CIT Bank accounts offer great rates available nationwide which I recommend.
|Discover Bank Online Savings||$200 Bonus + 0.50% APY||Review|
|Aspiration||$150 Bonus + 1.00% APY||Review|
|Axos Business Savings||$100 Bonus + 0.20% APY||Review|
|Axos Bank High Yield Savings||Up to 0.61% APY||Review|
|Quontic Bank High Yield Savings||0.55% APY||Review|
|American Express High Yield Savings||0.50% APY||Review|
|CIT Bank Money Market||0.45% APY||Review|
Table of Contents
Why Does This Six Transfer Limit Exist?
Simply, it exists because your savings account is considered a “savings deposit” and a different set of rules comes with it.
The rules exist to satisfy the requirements of the Federal Reserve. These rules require banks to have a certain amount of money in their vaults, on different accounts. They are updated every year depending on the Federal Reserve, so there is no consistent rule on transfers.
What Counts As A Transfer?
Anything that may be counted as “convenient” will count towards this limit of six. Here are some things that are under this category:
- Preauthorized, automatic transfers (including overdraft protection and bill payments)
- Initiated by phone, fax or computer
- Made by check, debit card, or other similar order made by you to a third party.
How To Get Around This Limit
An easy way to get around this limit is to make a bigger, but fewer transfers. That way, you don’t hit the six transfer limit. The other way around it is to make “unlimited withdrawals by mail, messenger, ATM, in person, or by telephone (via check mailed to the depositor).” These types of transactions don’t count as convenient, so they don’t count towards the limit.
If you really need to make a transfer between accounts, you can always withdraw it from an ATM from your savings account and deposit it into checking. Also, you could speak with a teller and make the transfer.
The fee is there to help you keep your savings in check. They are your savings after all, so you shouldn’t be taking too much money out of the account anyways. Now that you know why there is a 6 ACH transfer limit, check out our Bank Bonuses, Saving Rates and Credit Card Bonuses!