Another way banks are ripping us off; make sure your bank isn't doing it

**craftypam** · 04-02-2010, 07:23 PM

My ds rec'd his income tax check and deposited it in his savings account. He has needed some of it 4 times. WELLLLLL the bank took $15 of his money for withdrawing money from HIS savings account 4 times in a month!!!!!!

The thieves!!!!!!!! We need to keep each other informed so we can fight back!!!!

**frugalfranny** · 04-02-2010, 07:27 PM

On one of my accts. it has a 'limit number' on it..........but THAT is for i-net or checks...........I can have all the 'in person' withdrawals that I want. Rather than 'count'..........I just make all of them ---in person withdrawals. The bank is close to my house and is on the way to almost anywhere I go....so no real inconvenience.

THANKS FOR THE HEADS UP...............I agree.......think anyone should post anything new so we will know what to watch for.........takes a lot to be a 'savvy' consumer these days.

**Neeley** · 04-02-2010, 07:33 PM

One of our savings accounts is like that. We get three withdrawals per quarter. From the fourth one on there is a $5 excessive withdrawal fee.

**craftypam** · 04-02-2010, 07:38 PM

I would change banks rather than give them free money. Even going to a credit union would be better.

**savvy_sniper** · 04-02-2010, 07:52 PM

There are different types of savings accounts and it is your responsibility to know the rules. I have two different savings accounts. One that I can add and withdraw from as needed and one that only allows three withdrawals per quarter.

**Neeley** · 04-02-2010, 07:57 PM

I prefer a credit union over a bank. We do all of our banking (three checking accounts, three savings accounts)with our credit union, with he only exception being the one savings account mentioned above. That account is set up specifically for DS's tuition payments only. Once a month the tuition is withdrawn so we never get a excessive withdrawal fee.

**McD** · 04-02-2010, 08:21 PM

The withdrawal limits on various types of accounts are covered under Reg D. The terms and conditions of the account (including withdrawals) will be on the signature card your son signed. The bank should have a fees and services brochure available for him if they didn't provide him one at account opening.

The fee is common for exceeding that. It's designed to help consumers comply with the regulation so that the bank is in compliance, as well as earn a profit for the bank.

With that being said, that is a really steep amount for that fee. The highest I've ever seen is 7.50$

For those interested, I've included a link that shows a list and brief summary of all the regulations banks are required to follow by the Fed Reserve Bank. Click me Click ME!

Pam--this is the exact section of the reg that applies to your son: 204.33

An education consumer is a very powerful consumer.

**craftypam** · 04-02-2010, 08:56 PM

I understand about it being on the paper that he signed when opening the account. Thats how they sneak those things in; bunch of paperwork to read while signing up for an account. I still think it is ridiculous for anyone to take money from you for taking YOUR money out of your account. I belonged to Std Fed, LaSalle and when BOA took over they wanted me to carry a high balance to keep my checking free. I left. I do not think my ds is alone in finding this out the hard way so I thought I'd put a thread for everyone to read.

**Contrary Housewife** · 04-02-2010, 09:34 PM

I read those forms before I sign them. I'm probably the only one who does.

If you're going to be making a bunch of transactions on the account, you need to open a checking account, not savings. My bank made that very clear when I opened mine.

**frugalfranny** · 04-03-2010, 03:17 AM

Originally Posted by Contrary Housewife

I read those forms before I sign them. I'm probably the only one who does.
.

No---CH---I do too!!

Sometimes ---if it is a lot to read---it is much to the 'disgust' of the person waiting for me to sign it.

Mine have mostly been the little 'folding pamphlets' that you take home and read..................which I also read.

And these days.........with all the new rules ---laws ---etc. I make sure I read every single little thing!!!

**Greebo** · 04-03-2010, 05:21 AM

Like MrsMcD said - the limit on the number of withdrawals is a federal regulation. The bank is taking advantage of the regulation to make a profit, but the bank is not the reason for the limit.

Thanks, Uncle Sam!

**Luv2BeFrugal** · 04-03-2010, 03:33 PM

Wow! I'm glad we use a credit union! They don't do that...at least ours doesn't...

**SimplyPrim** · 04-03-2010, 09:28 PM

As someone else mentioned, I would be finding another more "friendly" bank than give them 1 penny. I'm currently looking for another bank myself since mine has been suddenly charging me a $15 a month "service fee"