Buffalo Gal

The notice did not come with the friendly phone call or even an instant email. It was one of those "this is official" mailings where you have to tear off three sides in the correct order to discover what is usually a check.
I didn't know why our bank might be sending us money, but we have been very good customers as of late. Maybe they saw all of the electronic transaction notes on our online account regarding the shower and wedding and are sending a gift...
"Transaction limitations under Federal Reserve Board Regulation D have been reached for this account. Pursuant to the "Schedule of Fees and Transaction Limitations" provided to you at account opening, if limits are exceeded, a $15 service charge wiill be assessed for each transaction over the limit. Please be advised that any account that exceeds the Regulation D transaction limitations during three (3) separate statement cycles may be closed. The three separate statement cycles do not have to be consecutive. "
Huh?
Checking out the Federal Reserve site and a half-dozen articles on my Regulation D-lemma, I discovered section D refers to the "reserve requirement of depository institions" - it was established in 1980 to assure funds are available in the event of a bank run.
But, the act entitles one to unlimited ATM or counter transactions, this applies to telephone,check and other transations from a savings account.
Now I'm really confused.
The amount withdrawn does not matter, it's a Rubik's cube of the number of transactions and how they were placed... created in a time before online banking was imagined. The rule specifically does not mandate bank charges for exceedng certain transaction number limits - only that the account must be closed if it happens three times. It allows charges for breaking the rule, but does not cap them.
Is this getting any clearer to you?
Several articles on the topic have Federal Reserve officials noting that this is an anachronism in these times of online banking, but legislation to change it has not made it to the floor.
Why not?
Could it possibly be that many financial institutions make more money from fees than by simply managing funds?
Tomorrow I will transfer our savings account to make it another checking account, doing my part to contribute to the negative savings rate in the United States today.
The rules around savings are a little too D-manding.

Buffalo Gal Judi Griggs I'm a communications professional, writer, cynic, mother, wife and royal pain. The order depends on the day. I returned to my hometown in November 2004 after a couple of decades of heat and hurricanes. I can polish pristine copy, but not here. This is my morning exercise -- 20-minute takes without a net or spellcheck. It's easier than sit ups for me. No guarantee what it will be for you. Clicking on the subscribe link will send you an email notice when each new entry is posted.
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Previous Entry :: Next Entry Read/Post Comments (0) Share on Facebook		2008-04-20 9:35 AM Making money with my money The notice did not come with the friendly phone call or even an instant email. It was one of those "this is official" mailings where you have to tear off three sides in the correct order to discover what is usually a check. I didn't know why our bank might be sending us money, but we have been very good customers as of late. Maybe they saw all of the electronic transaction notes on our online account regarding the shower and wedding and are sending a gift... "Transaction limitations under Federal Reserve Board Regulation D have been reached for this account. Pursuant to the "Schedule of Fees and Transaction Limitations" provided to you at account opening, if limits are exceeded, a $15 service charge wiill be assessed for each transaction over the limit. Please be advised that any account that exceeds the Regulation D transaction limitations during three (3) separate statement cycles may be closed. The three separate statement cycles do not have to be consecutive. " Huh? Checking out the Federal Reserve site and a half-dozen articles on my Regulation D-lemma, I discovered section D refers to the "reserve requirement of depository institions" - it was established in 1980 to assure funds are available in the event of a bank run. But, the act entitles one to unlimited ATM or counter transactions, this applies to telephone,check and other transations from a savings account. Now I'm really confused. The amount withdrawn does not matter, it's a Rubik's cube of the number of transactions and how they were placed... created in a time before online banking was imagined. The rule specifically does not mandate bank charges for exceedng certain transaction number limits - only that the account must be closed if it happens three times. It allows charges for breaking the rule, but does not cap them. Is this getting any clearer to you? Several articles on the topic have Federal Reserve officials noting that this is an anachronism in these times of online banking, but legislation to change it has not made it to the floor. Why not? Could it possibly be that many financial institutions make more money from fees than by simply managing funds? Tomorrow I will transfer our savings account to make it another checking account, doing my part to contribute to the negative savings rate in the United States today. The rules around savings are a little too D-manding. Read/Post Comments (0) Previous Entry :: Next Entry Back to Top