Recent Topics
KIA TYPE 4 (M) ATF
by flinter - 05/28/20 08:49 PM
My new Henry 22 Magnum rifle
by tig1 - 05/28/20 08:45 PM
Mobil 1 M-102 for 3 6000km oil changes?
by pktrkt - 05/28/20 08:33 PM
1/2 75W-90 1/2 75W-110 Can you mix equal parts
by jrommelt - 05/28/20 08:22 PM
Mazda b4000 to the junkyard
by HyundaiAbuser - 05/28/20 08:20 PM
2017 RAM 2500 6.4 Hemi AMSoil and PUP
by Gondul - 05/28/20 07:50 PM
Nail in tire, what would you do?
by Brybo86 - 05/28/20 07:44 PM
Any decent lap tops for $200.00 or less?
by BAJA_05 - 05/28/20 06:49 PM
New PW with Honda 190 engine - Ethanol treatment?
by DirtyApe - 05/28/20 06:38 PM
What size tube should a 110/50-6.5 Tire use?
by taztheman - 05/28/20 06:14 PM
C&P Allison Transmission Filter - 27k miles, 3 years
by shibby6600 - 05/28/20 05:51 PM
XG9100 - 7k miles - 9 months - filter magnet
by shibby6600 - 05/28/20 05:47 PM
2017 Audi A4 PCV Valve replacement
by dbias - 05/28/20 05:23 PM
Audi E-Tron Technik
by OVERKILL - 05/28/20 05:12 PM
Deer 1....My Avalon 0
by ZZman - 05/28/20 03:21 PM
Auto Dealers Supplies?
by cknight49090 - 05/28/20 03:09 PM
interesting video reg vs premium
by raaizin - 05/28/20 02:55 PM
Discount Tire Direct FLASH SALE
by Mr Nice - 05/28/20 02:42 PM
2021 Acura TLX Sports
by buster - 05/28/20 01:36 PM
Newest Members
Kboggs, oldcodger, cwllams1, Danwrig, DanielR
71558 Registered Users
Who's Online Now
96 registered members (agarb, 830Lee, 4WD, aquariuscsm, AndyB, Alfred_B, 11 invisible), 2,156 guests, and 40 spiders.
Key: Admin, Global Mod, Mod
Forum Statistics
Forums67
Topics305,997
Posts5,284,349
Members71,558
Most Online4,538
Jan 20th, 2020
Donate to BITOG
Print Thread
Hop To
Page 1 of 2 1 2
Does anyone know the purpose of the Reg D limit? #5435233 05/21/20 04:13 PM
Joined: Oct 2006
Posts: 9,734
grampi Offline OP
OP Offline
Joined: Oct 2006
Posts: 9,734
I received an email notice from my credit union stating that the Reg D limit has been temporarily removed to give people easier access to their money. I could never figure out the purpose of this reg. For those who don't know what this is, it's a law that restricts the number of withdrawals you can make from your savings account per month, which the limit is 6. This limit makes no sense. Why would the banking industry care how many times people pull money from their savings account? After all, it is our money, and our accounts...

Re: Does anyone know the purpose of the Reg D limit? [Re: grampi] #5435246 05/21/20 04:27 PM
Joined: Dec 2006
Posts: 2,819
S
SrDriver Offline
Offline
S
Joined: Dec 2006
Posts: 2,819
Our bank allows 3 withdrawals a month from a Money Market account but no limit on plain savings.

Re: Does anyone know the purpose of the Reg D limit? [Re: grampi] #5435250 05/21/20 04:31 PM
Joined: Apr 2013
Posts: 128
V
VetteElite Offline
Offline
V
Joined: Apr 2013
Posts: 128
Yes I do actually. It has to do with how banking reserves work. Banks have to keep a certain amount of reserves on savings accounts and demand (checking accounts). I think prior to recent events, there was no reserve limit on demand accounts but a certain (small) percentage on savings accounts. Regulation D covers the reserve regulations and places a cap on savings account withdrawals to minimize the amount funds move in/out of these accounts (demand accounts are supposed to be your transaction accounts). However, currently all reserve requirements are 0% and therefore there is no purpose in capping savings account withdrawals.

Re: Does anyone know the purpose of the Reg D limit? [Re: grampi] #5435281 05/21/20 05:10 PM
Joined: Jun 2003
Posts: 35,621
E
eljefino Offline
Offline
E
Joined: Jun 2003
Posts: 35,621
The banks actually suggested the limit. It helps them get fees from overdrafts-- this is why it's hard/impossible to link savings to checking and have it draw from savings when checking runs dry.

Re: Does anyone know the purpose of the Reg D limit? [Re: grampi] #5435287 05/21/20 05:15 PM
Joined: Apr 2013
Posts: 128
V
VetteElite Offline
Offline
V
Joined: Apr 2013
Posts: 128
No, that's your conspiracy theory. The limit has been around since the Great Depression.

Re: Does anyone know the purpose of the Reg D limit? [Re: VetteElite] #5435337 05/21/20 06:47 PM
Joined: May 2015
Posts: 2,944
A
Alfred_B Online Content
Online Content
A
Joined: May 2015
Posts: 2,944
Originally Posted by VetteElite
Yes I do actually. It has to do with how banking reserves work. Banks have to keep a certain amount of reserves on savings accounts and demand (checking accounts). I think prior to recent events, there was no reserve limit on demand accounts but a certain (small) percentage on savings accounts. Regulation D covers the reserve regulations and places a cap on savings account withdrawals to minimize the amount funds move in/out of these accounts (demand accounts are supposed to be your transaction accounts). However, currently all reserve requirements are 0% and therefore there is no purpose in capping savings account withdrawals.


Absolutely correct. Used to make sense up until the 90s but fiscal policies have been turned upside down in the last 10 years or so.

Re: Does anyone know the purpose of the Reg D limit? [Re: grampi] #5435604 05/22/20 06:19 AM
Joined: Jul 2012
Posts: 3,959
A
alarmguy Offline
Offline
A
Joined: Jul 2012
Posts: 3,959
The purpose of REG D (federal reserve) is to maintain a stable money supply by discouraging frequent electronic transfers of money in and out of savings accounts.
The limit on online/electronic transfers is 6 a month, any more then that and you pay a transfer fee.
This regulation has been suspended for 6 months due to covid.

The limit of 6 never applies if you go to a physical bank to do your transfers
Regulation D is a federal reserve rule for any bank or credit union that is insured by them. The banking/credit union industry has no control over this and MUST charge a fee if they are insured by the Federal Government.

(the SEC also has a Reg D but not related)

Last edited by alarmguy; 05/22/20 06:30 AM.

14 Road King (current)
08 VStar 1300 Tourer
07 Suzuki C50
Re: Does anyone know the purpose of the Reg D limit? [Re: SrDriver] #5435623 05/22/20 06:58 AM
Joined: Oct 2006
Posts: 9,734
grampi Offline OP
OP Offline
Joined: Oct 2006
Posts: 9,734
Originally Posted by SrDriver
Our bank allows 3 withdrawals a month from a Money Market account but no limit on plain savings.

Unless this is being done only on a temporary basis, your bank is in violation of this reg...this reg applies to all financial institutions...

Re: Does anyone know the purpose of the Reg D limit? [Re: grampi] #5435886 05/22/20 01:12 PM
Joined: Jul 2012
Posts: 3,959
A
alarmguy Offline
Offline
A
Joined: Jul 2012
Posts: 3,959
Originally Posted by grampi
I received an email notice from my credit union stating that the Reg D limit has been temporarily removed to give people easier access to their money. I could never figure out the purpose of this reg. For those who don't know what this is, it's a law that restricts the number of withdrawals you can make from your savings account per month, which the limit is 6. This limit makes no sense. Why would the banking industry care how many times people pull money from their savings account? After all, it is our money, and our accounts...

Originally Posted by grampi
I received an email notice from my credit union stating that the Reg D limit has been temporarily removed to give people easier access to their money. I could never figure out the purpose of this reg. For those who don't know what this is, it's a law that restricts the number of withdrawals you can make from your savings account per month, which the limit is 6. This limit makes no sense. Why would the banking industry care how many times people pull money from their savings account? After all, it is our money, and our accounts...


Reread my post on page 1. It is not the banking industry that limits your withdrawals. It’s the federal government, Technically there is no limit but if you exceed six withdrawals electronically a month you’ll be charged a fee

Last edited by alarmguy; 05/22/20 01:19 PM.

14 Road King (current)
08 VStar 1300 Tourer
07 Suzuki C50
Re: Does anyone know the purpose of the Reg D limit? [Re: grampi] #5435887 05/22/20 01:13 PM
Joined: Jul 2012
Posts: 3,959
A
alarmguy Offline
Offline
A
Joined: Jul 2012
Posts: 3,959
Originally Posted by grampi
Originally Posted by SrDriver
Our bank allows 3 withdrawals a month from a Money Market account but no limit on plain savings.

Unless this is being done only on a temporary basis, your bank is in violation of this reg...this reg applies to all financial institutions...


There is no limit on withdrawls from your savings account if done at a Bank. There is a limit of six withdrawals if you do it electronically

Last edited by alarmguy; 05/22/20 01:15 PM.

14 Road King (current)
08 VStar 1300 Tourer
07 Suzuki C50
Re: Does anyone know the purpose of the Reg D limit? [Re: alarmguy] #5437321 05/24/20 09:35 AM
Joined: Oct 2006
Posts: 9,734
grampi Offline OP
OP Offline
Joined: Oct 2006
Posts: 9,734
Originally Posted by alarmguy
Originally Posted by grampi
I received an email notice from my credit union stating that the Reg D limit has been temporarily removed to give people easier access to their money. I could never figure out the purpose of this reg. For those who don't know what this is, it's a law that restricts the number of withdrawals you can make from your savings account per month, which the limit is 6. This limit makes no sense. Why would the banking industry care how many times people pull money from their savings account? After all, it is our money, and our accounts...

Originally Posted by grampi
I received an email notice from my credit union stating that the Reg D limit has been temporarily removed to give people easier access to their money. I could never figure out the purpose of this reg. For those who don't know what this is, it's a law that restricts the number of withdrawals you can make from your savings account per month, which the limit is 6. This limit makes no sense. Why would the banking industry care how many times people pull money from their savings account? After all, it is our money, and our accounts...


Reread my post on page 1. It is not the banking industry that limits your withdrawals. It’s the federal government, Technically there is no limit but if you exceed six withdrawals electronically a month you’ll be charged a fee

It really doesn't matter WHO limits it, the limit itself is stupid...Like I said earlier, it's my money and I should be able to transfer it around as much as I see fit. The financial institution is fortunate that I have chosen them to secure my money...they act like it's THEIR money...

Re: Does anyone know the purpose of the Reg D limit? [Re: grampi] #5438185 05/25/20 08:34 AM
Joined: Jul 2012
Posts: 3,959
A
alarmguy Offline
Offline
A
Joined: Jul 2012
Posts: 3,959
Originally Posted by grampi
Originally Posted by alarmguy
Originally Posted by grampi
I received an email notice from my credit union stating that the Reg D limit has been temporarily removed to give people easier access to their money. I could never figure out the purpose of this reg. For those who don't know what this is, it's a law that restricts the number of withdrawals you can make from your savings account per month, which the limit is 6. This limit makes no sense. Why would the banking industry care how many times people pull money from their savings account? After all, it is our money, and our accounts...

Originally Posted by grampi
I received an email notice from my credit union stating that the Reg D limit has been temporarily removed to give people easier access to their money. I could never figure out the purpose of this reg. For those who don't know what this is, it's a law that restricts the number of withdrawals you can make from your savings account per month, which the limit is 6. This limit makes no sense. Why would the banking industry care how many times people pull money from their savings account? After all, it is our money, and our accounts...


Reread my post on page 1. It is not the banking industry that limits your withdrawals. It’s the federal government, Technically there is no limit but if you exceed six withdrawals electronically a month you’ll be charged a fee

It really doesn't matter WHO limits it, the limit itself is stupid...Like I said earlier, it's my money and I should be able to transfer it around as much as I see fit. The financial institution is fortunate that I have chosen them to secure my money...they act like it's THEIR money...


Wrong again, they do not act like its their money, though you may feel that way. The GOVERNMENT MANDATES THAT REQUIREMENT.

SECOND POINT IS, (just being nice saying this) but you are wrong again. There is no limit on withdrawals from your checking account, NONE.
There are no limits on withdrawals from saving accounts when done at your bank, NONE.

There are only limits if you make withdrawals electronically from your savings accounts. So no one is acting like its anyones money but your own.
You choose the higher interest of a savings account? Then you live by the rules of YOUR government who insures your money.

You have the right, to put your money anyplace else if you wish, but if you want your money insured by the government, you play by their rules.
No different then when one invests in CDs.

Hopefully this helps, I am not being "mean" or nasty in anyway.
You dont get free lunch as in this case, your money insured without rules. Dont like the rules? put your money someplace else. Its a free country and there are TONS of places to put your money without government INSURANCE.
if you want insurance, like anything then you live by the rules of the people insuring you.

There has never been a withdrawal limit on your money from a savings account and still to this day there is not.
However, if you do it electronically over 6 times a month you will be charged a mandated fee. This is to insure a stable money supply and give you a higher interest rate with free insurance. Dont like it" write your congressman, not your bank. :o)



Last edited by alarmguy; 05/25/20 08:50 AM.

14 Road King (current)
08 VStar 1300 Tourer
07 Suzuki C50
Re: Does anyone know the purpose of the Reg D limit? [Re: alarmguy] #5438221 05/25/20 09:40 AM
Joined: Oct 2006
Posts: 9,734
grampi Offline OP
OP Offline
Joined: Oct 2006
Posts: 9,734
Originally Posted by alarmguy
Originally Posted by grampi
Originally Posted by alarmguy
Originally Posted by grampi
I received an email notice from my credit union stating that the Reg D limit has been temporarily removed to give people easier access to their money. I could never figure out the purpose of this reg. For those who don't know what this is, it's a law that restricts the number of withdrawals you can make from your savings account per month, which the limit is 6. This limit makes no sense. Why would the banking industry care how many times people pull money from their savings account? After all, it is our money, and our accounts...

Originally Posted by grampi
I received an email notice from my credit union stating that the Reg D limit has been temporarily removed to give people easier access to their money. I could never figure out the purpose of this reg. For those who don't know what this is, it's a law that restricts the number of withdrawals you can make from your savings account per month, which the limit is 6. This limit makes no sense. Why would the banking industry care how many times people pull money from their savings account? After all, it is our money, and our accounts...


Reread my post on page 1. It is not the banking industry that limits your withdrawals. It’s the federal government, Technically there is no limit but if you exceed six withdrawals electronically a month you’ll be charged a fee

It really doesn't matter WHO limits it, the limit itself is stupid...Like I said earlier, it's my money and I should be able to transfer it around as much as I see fit. The financial institution is fortunate that I have chosen them to secure my money...they act like it's THEIR money...


Wrong again, they do not act like its their money, though you may feel that way. The GOVERNMENT MANDATES THAT REQUIREMENT.

SECOND POINT IS, (just being nice saying this) but you are wrong again. There is no limit on withdrawals from your checking account, NONE.
There are no limits on withdrawals from saving accounts when done at your bank, NONE.

There are only limits if you make withdrawals electronically from your savings accounts. So no one is acting like its anyones money but your own.
You choose the higher interest of a savings account? Then you live by the rules of YOUR government who insures your money.

You have the right, to put your money anyplace else if you wish, but if you want your money insured by the government, you play by their rules.
No different then when one invests in CDs.

Hopefully this helps, I am not being "mean" or nasty in anyway.
You dont get free lunch as in this case, your money insured without rules. Dont like the rules? put your money someplace else. Its a free country and there are TONS of places to put your money without government INSURANCE.
if you want insurance, like anything then you live by the rules of the people insuring you.

There has never been a withdrawal limit on your money from a savings account and still to this day there is not.
However, if you do it electronically over 6 times a month you will be charged a mandated fee. This is to insure a stable money supply and give you a higher interest rate with free insurance. Dont like it" write your congressman, not your bank. :o)




I never said there were limits on checking accounts. You have specified transactions I never made any claims to. Having no transfer limits on savings accounts by stipulating "as long as you're making the transaction in person" is a bit misleading. There is a limit when making transfers electronically, or over the phone. My credit union isn't located locally, so the only transactions I can make with them are either electronically, or over the phone. If the limit is to keep more of your money in the account, as someone posted earlier, then having no transfer limits when making them in person, but limiting phone an online transfers makes no sense. I also don't think there is a fee if you make more than 6 transfers from savings in a month. I believe they just don't allow any more transfers. At least, that's the way my credit union does it. I tried to make more than 6 one time, I even got on the phone with them and they didn't mention anything about making more than 6 and paying a fee. They just said no more withdrawals from savings could be made.

Re: Does anyone know the purpose of the Reg D limit? [Re: grampi] #5439004 05/26/20 06:04 AM
Joined: Jul 2012
Posts: 3,959
A
alarmguy Offline
Offline
A
Joined: Jul 2012
Posts: 3,959
Posted by gramps =
"I never said there were limits on checking accounts. You have specified transactions I never made any claims to. Having no transfer limits on savings accounts by stipulating "as long as you're making the transaction in person" is a bit misleading. There is a limit when making transfers electronically, or over the phone. My credit union isn't located locally, so the only transactions I can make with them are either electronically, or over the phone. If the limit is to keep more of your money in the account, as someone posted earlier, then having no transfer limits when making them in person, but limiting phone an online transfers makes no sense. I also don't think there is a fee if you make more than 6 transfers from savings in a month. I believe they just don't allow any more transfers. At least, that's the way my credit union does it. I tried to make more than 6 one time, I even got on the phone with them and they didn't mention anything about making more than 6 and paying a fee. They just said no more withdrawals from savings could be made. [/quote]

My answer to gramps =

Hey, I am not the bad guy here. Just trying to explain to you the purpose of the regulation and that purpose is to keep a stable money supply. Once again, in case I didnt make it clear enough and you didnt understand.
If you need to access your savings account more then 6 times a month, then use your checking account instead. Its that simple, unlimited transactions in a checking account at a lower interest rate.
If you do not like it, you can invest any place else that you want but if you want government insurance, then, you have to live by the rules.

If you want to to have your money in a higher interest yielding government insured savings account, then you (and the bank) has to adhere to the requirements for getting that higher interest. Part of the reason for that higher interest is more stability which can be lent out at a higher rate, allowing you to get a higher rate in return. Its the same reason savings CD's, Savings Bonds can pay out higher interest with government insurance.

Just because you think is makes no sense doesnt mean there is no reason. The reason is perfectly clear but you just dont understand it all, yet with research you can have your answers.
Your thinking small when you think it doesnt make sense that you can go to a bank for unlimited transfers and withdrawals when made in person. The reason for this is, you can only go to the bank so many times a day or week or month, however, electronically technically someone could constantly "churn" big money in and out of savings accounts all day long in investing or for whatever reason this can disrupt the stability of the system..

Much like Wall Street computer trading when firms make thousands of stock trades a day, selling and buying stocks using computer programs for every .25 point the stock moves.

Anyway, this is not a complete explanation, just again, giving you a reason, much of what I covered in my last post in this thread. :o)
You asked in the start of this thread of yours "Why" I am just telling you why, doesnt matter if we agree or not, if we dont, find another place to put your money and one of those places for unlimited transfers and withdrawals is a checking account with its lower corresponding interest rate, yet comes complete with government insurance.

SO,
You make a commitment to limit activity in your savings account and you earn higher interest and its government insured.
But ---
You can also have a checking account at a lower interest that is also government insured with unlimited activity

Last edited by alarmguy; 05/26/20 06:06 AM.

14 Road King (current)
08 VStar 1300 Tourer
07 Suzuki C50
Re: Does anyone know the purpose of the Reg D limit? [Re: grampi] #5439013 05/26/20 06:12 AM
Joined: Jul 2012
Posts: 3,959
A
alarmguy Offline
Offline
A
Joined: Jul 2012
Posts: 3,959
To further clarify the above ^^^ and make sure you understand, it is NOT the bank that limits you but the requirements of the government on the banks.
Savings deposit accounts have the following characteristics:
• have no maturity
• institutions must reserve the right at any time to require at least seven days’ written notice of an intended withdrawal (in practice, this right is rarely, if ever, exercised)
• may be interest-bearing
• allow no more than six transfers or withdrawals per calendar month or statement cycle of at least four weeks for the purpose of transferring funds to another of the depositor’s accounts at the same institution or making third-party payments by means of preauthorized, automatic, or tel- ephonic transfers or transfers or withdrawals made by check, debit card, or other similar order made by the depositor and payable to third parties
• allow unlimited withdrawals by mail, messenger, ATM, in person, or by telephone (via check mailed to the depositor)

If you like to read, knock yourself out and go to page 3 "Savings Accounts".
https://www.federalreserve.gov/boarddocs/supmanual/cch/int_depos.pdf


14 Road King (current)
08 VStar 1300 Tourer
07 Suzuki C50
Page 1 of 2 1 2
Previous Thread
Index
Next Thread

BOB IS THE OIL GUY® Powered by UBB.threads™