Customer Gets Slapped With "Excessive Activity" Fee For Messing With Savings Account Too Much

John found himself the proud father of a $10 fine from WaMu this morning because he exceeded 6 transfers from his savings account during a single billing period. When he called in to find out why this happened, he was told it was a federal regulation: “The representative from Wamu said there was nothing she could do and I need to better monitor my account. Honestly I just want to know if anyone else has had this problem?” It’s a real regulation, John, but banks don’t have to charge a fine—they can also simply warn you or not allow the seventh transaction—but then they wouldn’t get to make another $10 off of you.

John writes:

I talked to the person who couldn’t do anything for me and then I talked to a “Manager”. She explained to me that there are federal regulations that state that a person can only transfer money 6 times in a billing cycle.

The regulation she’s referring to is Federal Regulation D, and in section 204(d)(2) it defines exactly what constitutes a savings account. One of the characteristics is there can only be up to six pre-authorized or automatic transfers—however, you can make as many transfers as you want in person or via an ATM machine.
 
The $10 fee WaMu hit you with was entirely their own invention, however. A footnote to section 204(d)(2) describes what banks can do to ensure customers don’t go over the limit:

In order to ensure that no more than the permitted number of withdrawals or transfers are made, for an account to come within the definition in paragraph (d)(2) of this section, a depository institution must either:
 
(a) Prevent withdrawals or transfers of funds from this account that are in excess of the limits established by paragraph (d)(2) of this section, or
 
(b) Adopt procedures to monitor those transfers on an ex post basis and contact customers who exceed the established limits on more than an occasional basis.

Call us pessimists, but we bet every major bank opts for an ex post fine in order to generate additional income. That means if you have to make more than six transactions in a given month, use an ATM machine if you can.

(Photo: Getty Images)

Comments

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  1. jscott73 says:

    I always keep an eye on my Reg D transactions per month but my bank doesn’t charge me for attempting the 7th, they just don’t allow it.

  2. katarn says:

    I had a savings account with USAA, and they gave me a $10 fine for every transaction after the 6th.

  3. petrarch1608 says:

    I use wamu savings because of the good apr, but i hate the way their system works. To deposit from an external account the earliest you can do it is in five days in the future. Then when the five days come it usually takes another day or two before it is verified. All in all it takes 7 business days to do something that should take 1-2 days tops.

  4. uomdeacon says:

    As much as people usually hate BoA, when I had more than 6 transactions from my “savings” account, all I got was a phone call from them, warning me. No fee. I guess as much as I hate my BoA, WaMu would have been worse.

  5. SOhp101 says:

    It’s a federal fine. No way around it. Wamu charged me $25 though.

  6. jscott73 says:

    This is yet another reason I only use local credit unions, left BofA and Wells Fargo 10 years ago and haven’t been back since.

  7. ironchef says:

    it’s one of those stupid laws to prevent you from using your savings account as a checking account.

    Though I find it curious that transfers between a brokerage account and savings account on Etrade is unlimited.

  8. jscott73 says:

    @SOhp101: The way around it is to not allow it to happen in the first place, like most decent banks do…hmmm “decent bank”, is that an oxymoron?

  9. dragonvpm says:

    FWIW, with Wells Fargo at least, it looks like online transactions don’t trigger this law either. So, apparently, in person, via atm, or online appear to be ok.

  10. SHUDUPAHYOFACE says:

    Bank of America uses the same policy – but they charge you $3 for every transaction over the limit each month. This added up for me once when I hadn’t realized this policy. They send out warning letters at the end of the month, and if it happens 3 months in a row then your savings is automatically switched to a checking account (keeping the same #).

  11. stephenjames716 says:

    this is not a mandatory fine. I have a HSBC online savings and did the 6 withdrawls this month. I got a notice in the mail. I called them about it, they said everyone gets one notice before the account type is changed or closed out.

    wamu’s pants are on fire.

  12. jscott73 says:

    @dragonvpm: I would double-check that, online transactions typically count against your limit, otherwise you would only have phone transfers counting against your limit and who does that anymore??

  13. bohemian says:

    Hmm. This is totally new to me. I know the bank has mentioned something when we had a bunch of transfers but they didn’t fine me to tell me I had angered the fed gods.

    They used to also offer overdraft protection tied to your savings. It would just pull funds from there if you OD’ed. I wonder if the discontinuation of that had something to do with it.

  14. Coder4Life says:

    They did this at Bankers Trust in Iowa too. and with Wells Fargo. I think it’s pretty normal. I don’t understand why the goverment should care but you know it’s a way to make more money for them.

    Hey you are breaking a rule, so we are not going to stop you from doing that we are just going to fine you..

  15. wpearce says:

    I had this exact issue with WaMu as well, except it was even a bit worse. I share a savings account with a family member, and we regularly transfer money back and fourth with this account (We live 2000 miles away from eachother), for personal loans and such.

    Over the course of 30 days, we had a total of 12 transfers. We weren’t aware of this fee yet, and then suddenly noticed that the account was 40$ over drafted. They hit us with 6 x 10$ fees over the course of 4 days. Even worse, an ATM I had used charged its transaction fee seperately, so that counted as an excess transaction!!

    However, my family member went to our home branch (I don’t live where we opened the account), asked what this was about (I had no idea about this kind of fee). The manager of the branch promptly dropped the fees and informed us not to do it again. Problem solved.

    *Always* go to a branch to complain with banks!!!!!!!!! The people on the phone are impersonal, lazy and generally not having fun with their complaint handling job. The people in the branch will always be nicer since they have to look you in the eye.

  16. jscott73 says:

    Perhaps it’s a bank-backed, government mandated conspiracy to discourage people to save…ooops you put too much money into your savings account and can’t get it out now, better not do that next month.

  17. RothRandom says:

    I did that with BoA. They sent me a letter for a warning about what I did. I didn’t know what I did anyways, but I called the number they gave me and they told me I can’t withdraw from my savings over 6 times. I did it about 10 times. They gave me a warning and they didn’t charge me for anything, but if I did it again, they’d charge me and so on. Crazy stuff.

  18. Jenng says:

    When my husband was laid off in the dotbomb era we found out about this rule since we relied on our rainy day savings for a few months.

    My credit union however did NOT slap us with a fine they just wouldn’t let you complete the 7th transaction and when I called they explained why and that was that.

    Slapping you with a fee is just unacceptable especially when it could be set up like my credit union does and just not let the 7th transaction take place.

  19. jetman says:

    I have multiple WAMU accounts and got hit with the same fee last week. It sucks because their online data can take upwards of four days to reflect on the statement. I know that I am shopping for a new bank over something little like that. Banks should realize all it takes is a stupid “$10″ fee to lose a customer and spread the word. There should be a alert letting you know you are going to be socked a BS fee.

  20. chrispiss says:

    It’s in the agreement you signed up to. Get over it.

  21. fostina1 says:

    this happened to me at boa but it was a $50 fine but i was able to get it waived. now i have a mortgage with them and it is unlimited go figure.

  22. AD8BC says:

    Look at the regulation — it only pertiains to withdrawels or transfers _from_ savings, not transfers _to_/from such accounts as stated in the original story.

    You can put in as many times as you want!

  23. chrylis says:

    @ironchef: Transferring from a savings account to a brokerage account on E*TRADE does count as a withdrawal.

  24. henwy says:

    I dunno. Which is really worse, getting hit with a $10 fee for the transaction or really not being allowed to get your money out if you really needed it. I’d think most people would take the $10 fee. I don’t imagine most people fuss around that much with their savings account. If they are doing that many transactions, it’s likely because something really unexpected as cropped up. I’d think being able to move the money is more important in that circumstance than $10.

  25. AZTriGuy says:

    @jscott73: Actually, the first time this happened to me was actually WITH a credit union account. This has been around for at least 12 years. I primarily bank with ING Direct, and they have that limitation as well, though I don’t recall the charge. I seem to remember they didn’t let the transfer go through, rather than putting it through and charging me.

  26. BigElectricCat says:

    IIRC, there are monthly transfer limits (number of times, not amount of money) for credit union savings accounts.

    Perhaps someone can provide some specificity on that point?

  27. FightOnTrojans says:

    @dragonvpm: I have first-hand knowledge that Wells-Charge-o does in fact hit you with this fee AND online transfers DO count towards the transaction limit. They send you a letter explaining why and threaten to convert your savings account into a checking account if you violate it more than 2 or 3 times within any 12 month period. Sorry to burst your bubble.

  28. Xay says:

    When I signed up for my Suntrust savings account, the excessive transfer fee was upfront and bold on the paperwork. I’m pretty sure that I have made more than six online transfers in one month, but I have never been charged a fee.

  29. FilthyHarry says:

    as the economy collapses look for corps to hit you every way they can

  30. The Big O says:

    I had this happen from WAMU once too.

    At the time I didn’t know you were limited to 6 transfers. I knew the fine was totally them (I figured the Fed didn’t collect any type of fine for this), but didn’t bother arguing.

    Other than that, haven’t had any real issues with them since.

    Still BS though. I wish they’d just prevent the 7th transfer. But Chris hit the nail on the head…why stop them when you can turn it into fee revenue!

  31. almk says:

    You should always know these things about your accounts, like minimum balance and number of transfers/withdrawals before you get a fee. If they publish it somewhere, you really can’t complain. Besides, it makes good sense to keep people from disturbing savings: the reason you get a marginally better rate on savings accounts is they expect the money to be there longer. I know the fee certainly keeps my transactions planned and minimal.

  32. choinski says:

    I’m confused. My BoA account has one of those ‘keep the change’ features where a debit purchase is rounded up to the nearest dollar and placed into savings. I literally nickel and dime it every day – far more than six transfers – and it violated the definition of ‘savings’? (admittedly, my ‘savings’ are so small I blow that on Martinis in an hour.

  33. SpdRacer says:

    I have never had this problem, and for a long time I only put money into my savings and not into my checking, (free interest earning checking acct.). I guarantee that I exceeded six transactions within 30 days.

  34. SadSam says:

    I got that legal mumbo-jumbo warning from Wachovia but no fine or fee.

  35. Ryan Duff says:

    @SOhp101: Nowhere does it specify that the federal government is getting money from that fine. It’s not instituted by them, but by the banks themselves.

    I use a credit union and my online banking tells me how many of my 6 transfers I’ve used in a month. Once I get to 6 I have to go into a branch and do it there. They don’t allow me to go over and I never had to make that many transfers in a month.

    My real question is how poorly do you manage your finances when you have that many transfers to/from a savings account in one month…

    I get paid every two weeks and even on a month I get 3 checks (twice per year on average) I still might only make one or two additional transfers to/from my savings account.

  36. chrylis says:

    @choinski: The rule is about withdrawals or outgoing transfers, not deposits. You can make as many deposits as you like.

  37. dragonvpm says:

    @FightOnTrojans: Apparently I’ve been lucky so far then, I checked my statements going back a year or so (which only have 1 automatic transaction per month) and I’ve never been billed. I don’t often have more than 6 transactions, I had at least 4 months where I had more than 6 transactions total and all but the 1 automatic one was online.

  38. dragonvpm says:

    @jscott73: I didn’t check my agreement with WF, I just looked at my statements. No charges even in months where I had more than 6 withdrawls/transactions.

    I guess I’ve just lucked out.

  39. Johntastic says:

    Reg D covers withdrawls out of your savings account. You can deposit money as often as you like. It only applies to phone and internet transactions where there isn’t a way to personally verify you initiated the transfer (like a PIN number or a signature).

    IIRC, the 6 transaction limit also applies to overdraft transfers. The fee is there to stop people from keeping everying in savings, earning interest and writing checks, waiting for the OD transfer. I’d rather get a charge for my overdraft than deal have them not process that 7th payment and return checks.

  40. engfish says:

    Even though I had the cash to cover any balances, I got slapped with overdraft check charges for every debit/charge card purchase from FirstMark (firstmarkcu.org). I got all but two charges back when I was in awe of the 17 charges FirstMark made against me. Still, that’s a $50 lesson. The bank contended I did NOT have the money, although it was clear I did–with a several-hundred dollar balance in my checking, still.

    The seventh transaction showed it went through on the website, only to find out it was voided LATER, which was why I got my money back.

    And ATM transfers? They’re electronic too, according to my credit union. Watch that.

    I just keep enough in savings to cover six $25 transfers. The government regulation now just lowered my credit union’s usable capital.

  41. Sherryness says:

    B of A did this to me a few years ago. I don’t think I was ever more surprised by a fee and it was extremely infuriating. Here I was working really hard to save money everywhere I could, and they ambushed/sabotaged my efforts. I’m sure it’s in their fine print, but it was something that really never occurred to me to look for. I felt blindsided and very distrustful of my bank after that.

  42. mac-phisto says:

    i’m very pro-consumer & very anti-fee, but this is one fee i agree with for 2 reasons:

    1) savings accounts are designed for just that – saving. set up your payments out of a checking account. most people that exceed reg d are simply trying to earn as much interest as possible, which isn’t fair to other customers who follow the rules.

    2) i doubt many people here have had a regulator screaming in their ear about falsifying reserve requirements, but they do. incessantly. that’s what reg d is all about. central to the calculations made by regulators are capital reserve ratios that defined by account type (transactional vs. non-transactional). accounts that are transactional but exceed reg d transfers are supposed to be reclassified (which requires a recalculation of the reserve equation).

    it’s really not fun stuff.

  43. JayDeEm says:

    @chrispiss: It’s in the agreement you signed up to. Get over it.

    Indeed. How dare the OP not remember the exact terms, fees, gotchas, rules and every other detail of every agreement/contract/terms of use/EULA they have ever come across (not to mention those updates the credit card and utilities send every few months).

    I know that here at Consumerist we’re all about understanding what it is we’re signing or agreeing to before we sign. But seriously, who remembers these tiny details a week, month or a year later? Banks should be obligated to either provide a warning or prevent an action entirely if it’s a violation of their terms. Popping a customer with a fee over an obscure violation like this one is just plain shady.

    Oh, and WaMu did this to me too about 2 months ago. I’m in the processing of moving to a credit union now.

  44. mac-phisto says:

    @mac-phisto: that last part should read “accounts that are non-transactional but exceed reg d…”

  45. Joewithay says:

    Well I did about 10 transfers online last month, and my credit union never charges me or stop me when I do more than six. They must like me :)

  46. mac-phisto says:

    @JayDeEm: the rules are the same at credit unions (6/month), but the fee may be different (or there may be none at all).

    you can ask a teller what happens if you exceed your reg D limit in a month & they should be able to get you an answer.

  47. JayDeEm says:

    @mac-phisto: I had figured that the rules would be the same as far as the savings account is concerned, and I’m fine with that. This was just one of those ‘last straw’ kind of things for WaMu. I should have left them when they changed my default bill-pay account without any notification. The next time I paid the bills I was hit with a bunch of overdraft fees.

  48. RockStarr says:

    Here is the e-mail John sent to The Consumerist in full. Yes I do love my illiterate boyfriend.

    So In the middle of the night I get my Stimulus Check. Fine. When I woke up this morning I transferred all the money to my savings account. Fine. Only to find that when I transferred that money I got an Excessive Activity Fee of 10 bucks from Wamu. So I called. I talked to the person who couldn’t do anything for me and then I talked to a “Manager”. She explained to me that there are federal regulations that state that a person can only transfer money 6 times in a billing cycle. By the way my cycle ends the 14th. Oh how close I was. The representative from Wamu said there was nothing she could do and I need to better monitor my account. Honestly I just want to know if anyone else has had this problem ? Yeah it’s only 10 bucks. But as any fee could and would. They add up.

  49. Silversmok3 says:

    TCF didn’t charge me a fee-They just closed my savings account due to the federal regulation.

    A $10 fee does NOT prevent future violation of the stature, and should be refunded based on that statute.

  50. reflection717 says:

    This is the infamous “get off your butt” regulation.

    Anything you can do without getting off your butt and leaving your house counts against your 6 transactions per month. If you have to get off your butt to do the transaction (in bank and ATM) you can do it as much as you’d like.

    Every bank has to follow regulations (listed in article) I don’t understand why this is a “weird fee”. How better to make you notice and abide by a rule than to charge you?

    The reason most banks charge the fee is two-fold. One they get a fee, duh! Second it is easier to explain a fee to a customer than it is to explain why you wouldn’t let them access their money. The bank figures if you are doing a transaction you NEED to do so. Preventing the customer would just cause a different consumerist article – “My bank wouldn’t let me access my own money!”

    In my experience I’ve seen a 3-strikes approach. 1st time – Letter sent, 2nd time – Fee and letter, 3rd time – change account into a transactional account (Money Market or Checking) but again, it is up to each institution to figure out what they want to do to comply with the regs.

    Oh, and those papers you got when you opened your account, you know, the ones you tossed in a drawer… yeah they explain this to you.

  51. anarcurt says:

    @reflection717: Yeah the 3 strikes in 12 consecutive months I believe is part of reg D or just industry standard.

  52. chiieddy says:

    I left my local bank (Century Bank) when they started to charge me fees one month when I hit up against this.

  53. solidstate42 says:

    I got zinged by GMAC Bank for $10 and learned my lesson. Six transactions of which no more than 3 can be checks.

  54. youbastid says:

    Yep, as mentioned before, BofA does this too, except it’s $3 per. I got hit with $27 in fees after making 9 transfers over the limit. They wouldn’t budge, when they usually have in the past for me. I was using my savings account to transfer per diem into my checking on a daily basis so I could keep track of it.

  55. BeThisWay says:

    Yup. A way around it, though, is to transfer from your savings to a checking account at the same institution. Transfers between accounts do no count as one of your six allowed, and you can then withdraw or transfer the money elsewhere.

    That’s what I do…

  56. seajane says:

    Financial insttitutions are required to keep a reserve at the Fed for all demand deposits (ie checking accounts). The 6 transaction limit on savings accounts is to prevent them from “hiding” demand deposits and therefor avoiding the reserve. The fee is to offset the cost of recalculating of demand deposits to include the +6 time withdrawal savings in the total and recalculate their reserve.

  57. Krobar says:

    @bohemian: Working for a bank that charges this fee also, yes it applies to savings overdraft protection. Only our trick is we won’t do the overdraft transfer if it will be the 7th transfer out of the savings.

    We were told in training that it is mandated by the Fed, but I had my doubts about where the fee actually went, from what others have said I guess my doubts were right.

    Unfortunately, it is in the account agreement though, so you won’t be getting them refunded if they do occur. I always tell customer to transfer a little more than they think they’re going to need so they can avoid having as many transfers.

    Also, if you go too far past 7, I’ve seen our loss prevention put a hold of $999,999.99 on people’s accounts to get their attention about the matter.

  58. Krobar says:

    @BeThisWay: Erm, no, it’s transfers OUT of the savings, doesn’t matter where it is going to, so becareful!

  59. Anijake says:

    Yeah! This happened to me at WaMu also. When I asked via there online customer service where this was noted online that I could read BEFORE opening an account they refused to answer.

    Most banks I looked at(Citibank, CaptialOne…)before opening the WaMu account disclosed the number of transactions allowed on the savings account BEFORE signup.

    I do not dispute that there is a limit and a fee but I was pissed that it was not disclosed. If someone can find it on there site before (hell I could not even find it after) signing up I would like to know where they hid it.

  60. FightOnTrojans says:

    @BeThisWay: Uhh… no. I’ve run up against this for the very reason that I was using the online interface to transfer money from my savings to my checking account at the same institution. I did that a few times within a month in addition to my two regular payments out of that savings account, combined to go over the 6 transactions per month limit and I got that sternly worded letter and a fee.

  61. Even my credit union does this, then sends me a nice letter about why.

    It really aggravates me since it’s transfers within the same bank from a savings to linked checking. It’s not like I’m transferring money all over God’s green earth.

  62. drunxor says:

    this shit worries my gf all the time. when she first told this exists i didnt believe her as i have been with wamu for a long time and love the bank. then she showed me the rule. shame on you wamu!

  63. humphrmi says:

    When I bought my house, I had a bunch of savings in what was then a fairly high-paying money market account, and some money from various other legal sources (inbound stock sales, etc.) that I wanted to keep earning interest on until the day that I closed. So I did a lot of transfers. But, knowing the law, I kept them under the six-per-month rule, and in the final month I closed, I hit five … got a call from my bank (Citibank) reminding me that I was at five, and I had one more, and that was it. I thanked them, hung up, and moved on with my life because I had planned ahead and knew I could stay under the federal limit that month.

    Having a bank that doesn’t suck is a big plus, but knowing the law and planning to stay within it doesn’t hurt either.

  64. Myotheralt says:

    Wow, not only did this exact same thing happen to me, my name is Jon.

  65. East_Coast_Midwesterner says:

    This just happened to me two days ago. I attempted a transfer it just was not allowed. Citibank.

  66. shajack says:

    I use Citibank online banking and last year, without notice, suddenly my account was canceled and my money was just missing. I had to make the phone call to find out that it was the second month that I had exceeded my 6 transfers. They wouldn’t reinstate my account, but, go figure, I was able to open up a new savings account linked to my checking, but this new account had a higher interest rate!!!

  67. Ninjastorm66 says:

    Chase does it too. I got hit with a $6 fine a year ago for moving money around a lot in preparation of buying a motorcycle.

  68. humphrmi says:

    @East_Coast_Midwesterner: That’s the law. Citibank doesn’t charge you, they just don’t allow it as per law.

  69. Similar thing with PNC Bank. I can do pretty much as many transfers by ATM as I want, but when it comes to online transfers from savings to checking, I’m limited to 6 in a 30 day period.

    Meanwhile, I’m fine transferring between checking accounts (I have two) or from checking to savings.

  70. XianZhuXuande says:

    Wah. This was in the documentation for his savings account. Every bank with a savings account of this type does this, from WaMu to PenFed. Bank to Credit Union.

  71. gruffydd says:

    I saw a notice regarding this on the Citibank website a few months back, and I transfer money to and from savings all the time, but I have not been penalized for it…..yet.

  72. SayAhh says:

    Here’s an idea for a new fee: the “trying to contact us to complain about the fee”-fee

  73. Pipery says:

    Wells Fargo pulled the same crap on me a couple of years ago. I transfered money between my checking and savings “too many times,” and they slapped me with a $50 (!?!) fee.

    And they played the same logic…”it’s not us, it’s the feds.” I countered with “but you want my $50, not the feds,” and they ultimately reversed the charges.

    All of my transfers were made online. At no point did the web banking system warn me of this regulation or alert me to the fact I was in danger of violating it. When I brought this up with in the branch, they kindly suggested that I was presented with this information when I signed up for my account (god bless the fine print). When I told them I was 12 when I opened my savings account at their bank (I’m 25 now), they shut up and reversed the fee.

  74. Daniel says:

    I remmeber seeing this at my bank’s online banking. I have a feeling it is federal (even if the fee isn’t). I can see how it would prevent fraud.

    Besides, it *is* a savings account. How many transfers do you need?

    Daniel

  75. Tucco says:

    I’m with Wells Fargo and received a letter last year telling me my savings account would be turned into a checking account if I continued to use more than 6 transfers a month. They told me that ATM and in-person transfers didn’t count, only online transfers.

  76. femmesavante says:

    I have an online savings account with wamu. They tell you the fees for excessive withdrawals upfront. Most online savings have the same fees. If you want frequent withdrawals, use a checking account. Saving means put it in and leave there. I’m thinking this guy was just trying to get the interest payment.

  77. RockStarr says:

    @Daniel: Well he was transferring new money into savings, not out.

  78. MT says:

    This was one of the many reasons I left WaMu several years ago. The other was a little trite, but as a teenager I traveled cross country with family one summer and used several ATMs that weren’t WaMu’s. They didn’t charge me to transfer money between accounts on them, but charged me for using one of their ATMs in a mall in my hometown, saying that it was “rented out” or something similar.

    I’ve been with Wells Fargo since and I haven’t had any trouble with them… yet.

  79. crazydavythe1st says:

    this is why you read and keep a copy of the account disclosures. Use a checking account if you need to mess with the account frequently.

  80. MyCokesBiggerThanYours says:

    6 transfers is a limit set by the Feds. The sky is not falling this time, Chicken Little.

  81. Bryan Price says:

    @jscott73: Credit unions are good, but they still charge this fine. My son (who really should know better) has been running into this for over two years before he finally stopped his direct deposit going to savings and moved it to checking. I’ve seen four notices at the end of the month for this.

  82. MataHari says:

    @Anijake: There’s a whole “Disclosures” section just before you complete the application online that lists out the terms and fees:

    Disclosures
    View Account Terms & Conditions Print it | Save it (PDF, 520k)
    View Statement of Fees Print it | Save it (PDF, 20k)
    View Online Banking Services Agreement

    In the “Statement of Fees” document, it lists this:
    Excess Activity Fee
    Money Market Accounts: $10.00/occurrence
    Savings Accounts: $10.00/occurrence
    (for each Money Market or Savings Account transaction in excess of the limitations described in the Limited Transaction Accounts section of the Account Disclosures)

  83. soldstatic says:

    that’s why ‘checking’ where you have lots of interaction doesn’t generally make interest on the money in your account

  84. wsycng says:

    Had the same thing happened to me at WaMu and Wells Fargo.

    Today, I have an additional ING Savings Account (don’t know if ING will penalize one for the 7th transfer). I don’t keep more than $500 in my Wells Fargo account (the interest rate is pathetic anyways).

    I consolidate several transfers (e.g. Rent, Utilities, Credit Card) into one to avoid being being nickled-and-dimed.

  85. Hoffy784 says:

    ING Direct’s policy is that if you exceed 6 transfers a month on a savings account 3 times in one year, they’ll close the account. They don’t charge any fees for the mistake though.

  86. Oryx says:

    Jesus, I thought everyone knew this. (6 transaction limit)

    So they charged you, that sucks. Next time use a checking acct. or keep better track. It’s called savings for a reason.

  87. satoru says:

    I don’t get it. When you’re on BoA’s website they give you a gigantic warning anytime you touch your savings account about the 6 transaction limit per month. I never really understood why this was the case, but it just meant I did all my transactions out of my checking account instead. Hell to be honest the ‘savings’ accounts you get from most banks have practically negative interest rates to begin with! I float a few hundred bucks in mine just so I don’t get slammed with those pesky service charges.

  88. satoru says:

    @wsycng: ING is similar because it is designated as a savings account.

  89. kc2idf says:

    I had once gotten a warning from HSBC on this regulation. The consequences of a seventh withdrawal would have been that they would convert my savings account into a DDA (i.e. checking) account, which would result in me not earning interest on the account (or, at least, not as much).

  90. Bog says:

    The people at the bank are lying when they say they can’t refund the fees; it is a matter that they won’t refund the fees. The true like is that it is a “law.” There is no suggestion of a federal requirement of a fee or fine under any law or regulation. Fee is invented by the bank.

    Secondly, the prohibition only is for transfers FROM the account, not TO the account.. However in order to more quickly charge fees they are any transactions and just FROM transactions.

  91. u1itn0w2day says:

    It’s almost ALL electronic or computerized-where the heck are all the costs-having an armored car make 6 pick ups and deliveries-I think not.

    These fees are nothing but excessive greed which gouge the customer.Where the heck did these banks get their unwiley sense of entitlement.

  92. topachic25 says:

    Why keep crying over the the multitude of fees that banks HAVE to charge so they can pad the pockets of their shareholders? Do something about it! Educate yourself on why Not for Profit Credit Unions are the better choice (no Shareholders = More money back to you the consumer). You will not find REG D fees or a multitude of others that you find in Banks. One fee that almost ALL people overlook is the “Overdraft Protection Fee” from their banks. For example, You bank at Wells Fargo your account goes overdrawn. Thank God that “Kind Banker” advised you to set up your credit card as overdraft protection (haha). Now you have a $10.00 Fee ($10.00 more dollars each time you continue to overdraw), A Cash Advance Fee, and Cash Advance Fees on your credit card….You do the math. Your morning $6 cup of Starbucks that overdrew you never tasted soooo bad.

    Wake up! We do have choices and MUCH better alternatives. Exercise your freedoms as a enlightened Consumer : )

  93. scredly says:

    I had to make my savings account at Citizens non-interest bearing in order to get around the 6-transaction limit. I keep a small balance in my chequing account and xfer money in as I need it. I will not have my savings and DDA accounts electronically “connected” to cover over drafts. The bank wants $3 per month for the “service” – to check a box in the computer one time.

  94. b-peezy says:

    To be honest i didnt read most of the posts here, just the main story. I used to work this craphole of a bank. The only way to get around this is to physically make the transfer at the branch. Any electronic transfer (atm, phone xfer, online xfer) will result in this fee. This was the policy about a year ago. I have worked with a local credit union and this bank and the difference is night and day. All NSF fee’s are charged by the branch your opened your account at. Any refunds “have” to be given back to you by the opening branch. Mistakes are passed on from dept. to dept. And to be honest with you….these people can care less of what you say or do. We still to this day outsource to manilla. Wrong info is given all day long, I used to monitor calls and here the stupidest answers from our reps. MY advice…STAY CLEAR OF WAMU…their stock isnt in tip top shape either.

  95. denises_24 says:

    We belong to a CU and they just stop allowing the transfer from the phone or internet. You can go to an ATM or branch and transfer. I HATE banks for this very reasons.

  96. provolone says:

    Chase has done the same thing to me. They charged me with two $12 fines in a month where I went over some minimum number of transactions. This was a few years ago. They also gave me some line about federal regulations due to heightened security, the world changed on September 11th, blah blah, blah. They implied that these fines were required by the federal government, but I don’t believe that.

    In their defense, they refunded the fees to me that month, but said that they would not be able to give me a refund if it happened again.

  97. @jscott73: First Technology Credit Union is the same way, they simply don’t allow it.

    Also: this is specifically only from Savings account- meaning the checking accounts are NOT regulated under the same stipulation.

  98. the_wiggle says:

    @mac-phisto: well said & thank you for saying so!

  99. ekasbury says:

    WaMu notified me about this once but didn’t charge me. They told me the next time I tried it they’d charge. Makes sense, though. A savings acct isn’t a checking acct.

  100. wring says:

    @b-peezy: are you saying that manila call centers are crap?

  101. enigmaticslr says:

    I have around 40k in my account and I stupidly fell for this fee. Would WaMu be pissed off if i moved the entire amount somewhere else? I called them and they manager told me my account wasn’t old enough (6 Months) for her to do anything. I called the branch and the manager wanted to help but unfortunately I had opened only my checking account in the branch and my online savings on the internet… Is there anyone I can contact to help me out?

  102. orielbean says:

    My credit union DCU just won’t allow the excess transactions and doesn’t charge a fee. Uh, that’s pretty easy… I love them.