Quote:
|
Originally Posted by classic
That makes the news that TD Bank is now charging a $9 savings account fee almost meaningless.
Quote:
|
Originally Posted by CNN
CNNMoney reports the charge isn't outrageous because Wells Fargo and Bank of America also charge similar fees. The bank says the fee is necessary because an abundance of transactions begin to cost it money. The bank is also hiking other fees, including raising wire transfer costs from $10 to $15, certified checks from $4 to $8, money orders from $4 to $5 and stop-payment fees from $25 to $30.
Quote:
Starting in December, TD Bank (TD) savings account customers who exceed six transactions in a billing cycle will pay a $9 fee each time they take money out of their account. Transactions include online transfers from their savings account to other accounts, as well as phone and debit card withdrawals.
Citing a federal rule known as Regulation D, which limits the number of transactions customers can make from their savings accounts to six, other banks including Bank of America (BAC, Fortune 500) and Wells Fargo (WFC, Fortune 500) already have similar fees in place.
According to the regulation, after six savings account transactions it begins to costs the banks money. So TD Bank says it will begin charging customers instead of eating the cost itself, a spokeswoman said.
|
|
Here are the
facts on Reg D:
Quote:
1. What is Regulation D?
Federal Regulation D places a monthly limit on the number of transfers you may make from your Savings Accounts or Money Market Accounts (MMAs) without your physical presence being required. Transfers affected by this regulation therefore include:
Transfers made using Online Banking
Transfers made using Telephone Banking
Overdraft transfers (made automatically to cover insufficient funds in other accounts; see below)
Transfers made by a Member Service Representative on your behalf
Pre-authorized, automatic, scheduled or recurring transfers (see below)
You are allowed six such transfers per month, per account.
|
You may make any number of other transfers IN PERSON without incurring a penalty imposed by the government. Of course, some banks charge you to see a teller, which I consider evil. Hie thee to the nearest Credit Union POST HASTE.
I have sometimes bumped up against this Reg D. I have sometimes had the fee waived. The fee does NOT apply to checking accounts, but only to savings and money market accounts. The intention, to my mind, is to discourage using the interest bearing accounts like checking accounts.