Savings accounts are the simplest financial products offered by banking institutions. In Globe Live Media we explain more about how they work.
Savings accounts are precisely for that, so you can save your money and get a monthly interest for the fact that the bank manages your money. But if you have noticed, all banks limit you to certain amounts of money to transfer. And there is a reason for this, which we at Globe Live Media are going to explain to you.
For many years, all financial institutions in the United States had to allow a limit of only six bank transfers and the reason was that they had to have full assurance that each banking institution would have enough money to make all the necessary transactions successful for their customers.
However, by the year 2020, these financial requirements changed and although today, there is generally no limit on the number of transfers that can be made per month, there are some financial institutions that still limit these actions.
Savings accounts are the simplest of the financial products offered by banking institutions. Their main function is to maintain savings and for that simple reason, they usually have locks, in terms of the limit of transfers per month. In short, it is not their main purpose to do so.
When a person exceeded the limit of bank transfers per month, in the financial institutions that still use this type of criteria, they ended up being charged an extra fee.
In some other cases, the penalty, so to speak, for exceeding the limits on a transfer, could be that the savings account would be temporarily closed.
Now, with the elimination of the requirement of a certain number of transfers, banks are not obliged to adhere to this determination, let’s say that it has turned out to be an optional situation, both to remove this requirement and to keep it.
Those banks that have opted to maintain this transfer limit do so under the premise that they prefer to maintain the necessary reserves to be able to act and respond to any situation. If many savings account beneficiaries take all the money they have with them, the banks would get into trouble.
What to do?
Practically, you have a couple of options. First, if your financial institution has a limit on bank transfers and they are not working for you, then change banks. This is the best option, and the other is to approach an advisor, so that together you can determine which scenario is best for you.