Yes they do!
It is Bull shit!
I have a checking and savings account, which I use to pay bills and save money. Sometimes however I run short on cash and need a transfer from my savings to my checking. I do this all the time mind you. I even set up overdraft protection through my savings for when I run short on cash during random transactions in between paydays.
No big deal right? You are managing your money, saving it up for something special and you notice a FEE!
Fee for what?
It’s called a regulation violation D fee.
What the fuck is this? $35 I had to pay the bank…. for fucking what?
Excessive transfers from savings into your checking…. Ok so why do I have to pay a fee?
Damn bank does not have anything to do with it!
It’s the Government taking your hard-earned money from you is what it is.
I just don’t get it. People work hard to save money, to pay their bills on time. Hell we just got out of a recession, everyone’s broke.
I am not getting into the nitty-gritty of this Regulation fee but I will share this bit of info:
The reason for this is because your savings account is classified as a “saving deposit” and the reserve requirement on a “saving deposit” is 0%, compared to something like 10% on a “transaction account.” A reserve requirement is how much of the balance the bank must keep in reserve and not give out in loans. So when Emigrant Direct gets your $1,000 in your saving account, it doesn’t need to hold any of that in its reserves, it can loan all thousand dollars because the reserve requirement on a savings account is 0%. (hence the attractive rates) On a checking account (a transaction account) however, they must retain 10% of the balance on hand because the assumption is you will be drawing on your funds more frequently.
I never knew of this fee or was ever told about it. I guess reading the fine print is a must nowadays.
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