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Regulation D

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Started 2 years ago by misskitty
Latest reply from marymo

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Reg d

misskitty
Columbus
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Well let me start with what Regulation D is apparently.
I was planning our family vacation for my son's first Disney trip so two weeks ago I was transferring around money from my savings from checking as needed to incur new expenses.
I work really hard to save money so color me surprised when I logged into my bank site to check my stuff and see a $50 dollar fee for something called Regulation D....
After doing some research I found that Regulation D is a Government Fee

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, but only three of those may be made by check (a check counts against the month in which it clears, not when it was written).

Now I have never been a real fan of Government I like that they keep the citizens safe but
We the people are suppose to be the government yet we are still being run but fat guys in suits. I don't mind paying taxes I understand it keeps the world revolving. no issues there

So now I am at a cross roads I refuse to let someone tell me what I can and can't do with MY money.
I have no debt except my home if I could pay it off right now I would but I'm not there yet.

The question I have is how to make my money and myself less accessible to the government.
I will do everything I can now to scream a big old fuck you to them.
anyone have suggestions on this or ideas? How do you feel knowing they can take your money just because it seems like some people don't mind. Why is that?

Posted 2 years ago #
sjf
Canal Winchester
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I'm not sure you'll ever get away from regulation and the government without resorting to burying your money in the backyard.

Personally, I determined savings accounts at banks were generally a waste long ago. My wife and I have our "savings" set up through a taxable brokerage account in which we can purchase CDs or other bonds while leaving a portion of our assets liquid. We can write a check to/from the account or we can hook the account up to our regular checking accout and send money between the bank and our brokerage account at no cost with unlimited transactions. Some places, like Schwab, will set up a brokerage account and checking account together, making the process even easier.

Posted 2 years ago #
howatzer

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misskitty wrote >>
Well let me start with what Regulation D is apparently.
I was planning our family vacation for my son's first Disney trip so two weeks ago I was transferring around money from my savings from checking as needed to incur new expenses.
I work really hard to save money so color me surprised when I logged into my bank site to check my stuff and see a $50 dollar fee for something called Regulation D....
After doing some research I found that Regulation D is a Government Fee
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, but only three of those may be made by check (a check counts against the month in which it clears, not when it was written).
Now I have never been a real fan of Government I like that they keep the citizens safe but
We the people are suppose to be the government yet we are still being run but fat guys in suits. I don't mind paying taxes I understand it keeps the world revolving. no issues there
So now I am at a cross roads I refuse to let someone tell me what I can and can't do with MY money.
I have no debt except my home if I could pay it off right now I would but I'm not there yet.
The question I have is how to make my money and myself less accessible to the government.
I will do everything I can now to scream a big old fuck you to them.
anyone have suggestions on this or ideas? How do you feel knowing they can take your money just because it seems like some people don't mind. Why is that?

I do way more xfers than that per month from my high-yield checking account (schwab) and have never seen such a charge. Does this only apply to savings accounts?

Posted 2 years ago #
kessler
Georgian Heights
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Miss Kitty did you go into the bank and talk to a supervisor and see if they can remove this charge one time, since now you know how it works? Then remember how this works to prevent being charged again.
More than likely you have already done this. though it never hurts to point this out for others reading. Never call in or email in they always say no it's not their fault etc. etc.. While going in you can always give the hurt puppy/kitty look and hope they have mercy on you.

just a suggestion.
So sorry this happened to you.
Take care/good luck.

Posted 2 years ago #
sjf
Canal Winchester
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@howatzer--yes, it's a savings account issue only. I don't know the exact logic as to why savings and MMAs were singled out, but they often limit those transactions unless you appear in person or mail in your request.

Posted 2 years ago #
HeySquare
German Village
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From what I could understand from the internet, it seems like this may have something to do with banks retaining mimimun cash balances. Savings and MM accounts are, I think, probably counted toward the cash assets of a bank, since they are supposed to be more of a "fixed" savings vehicle, than say, for a checking account.

It appears that you could get around this charge by using an ATM, or doing transactions in person at the bank. That may be one option.

The other may be to set up a checking account to use, and transferring your money into that account.

I would also talk with a manager; however, unlike fees imposed by the bank, this appears to be a penality from the government, and may not be something that the bank has the power to waive.

Posted 2 years ago #
somertimeoh
Harrison West
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Everyone receives this information when an account is opened and are given updates on Rules and Regulations every time codes, laws, fee amounts, etc. change - as required by law. I hate reading fine print, I do it all day long, but there is a reason why these institutions have to spend the money (thank God they do or good bye to my paycheck) to make sure account holders are informed. Short of coming to your house and reading it to you, there's not much else that can be done. Read (and keep, scan, something) your terms people!!

ETA: Sorry about the $50 though. I got hit with a stupid fee last month because of a timing issue with my normal transfer date falling on a weekend and it pissed me off. My fault though, just wasn't paying attention. Still pissed me off, lol.

Posted 2 years ago #
Daz
Tweeting about some totally unimportant event
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I'm with Somer on that one.

Every bank I've ever been to has given me the warning about Savings accounts and MMAs. I've been told that it's because of the high yield on them. I'd go talk to the bank about it. If you push enough, banks tend to move.

Posted 2 years ago #
misskitty
Columbus
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I did talk to the lady at the bank and they said they can't take it away because it's not their charge. I understand that and I always try my hardest to be polite. I am not as mad as when I first saw the charge I guess I was just surprised that it's like that. I am not mad at the bank but I am at the government for trying to control my funds. The lady at the bank said one of the reasons for it was to promote saving instead of spending. I will look into just making it a checking account that way it can't be charged or I could just toss most into CD's.
I always read fine print that is the one thing my dad always pounded into my head I opened the account more then 10 years ago so I bet back when I knew about it and just forgot.
The thing that worries me is I went way back and started checking my transfers from the past year and there are a few that have more then 6 without the charge. I hope they don't take notice and go a head and tack those on too. Then I would most likely be really mad. lol

Posted 2 years ago #
th0m
Beechwold
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I would love to not have a savings account (and really I should just get more CDs) but I think more has to be done in the market for transparency around high-frequency computerized trading and then also just plain front-running... but then I completely understand that at the same time, the complexity of our systems demands more abstraction such that trillions can be managed without thinking about a thousand here or a thousand there (when it comes to big players) .... lots of opportunities for both regulation and maybe private companies to introduce audit and certification processes!

Posted 2 years ago #
somertimeoh
Harrison West
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Make sure you find out if it's based on calendar month or your statement date (or cycle date) so you know moving forward.

Posted 2 years ago #
Daz
Tweeting about some totally unimportant event
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misskitty wrote >>
I did talk to the lady at the bank and they said they can't take it away because it's not their charge.

I'm pretty sure the woman you talked to was full of it then and trying to pass the blame.

Amendment (1) directing Federal Reserve Banks to pay interest on certain balances held at Federal Reserve Banks by or on behalf of certain depository institutions and (2) authorizing the establishment of limited-purpose accounts, called "excess balance accounts" (effective July 2, 2009)
Notice
Amendments to Regulations D and I (1) conforming Regulation D to section 603 of the Financial Services Regulatory Relief Act of 2006, (2) revising restrictions on the types and number of transfers and withdrawals that may be made from savings deposits, and (3) making other clarifying changes (effective July 2, 2009)
Notice
Interim rule revising the rate for earnings on required reserve balances and excess balances of eligible institutions and providing that the rates may be revised by the Board from time to time (effective December 23, 2008)
Notice
Interim rule, under authority of section 128 of the Emergency Economic Stabilization Act of 2008, directing Federal Reserve Banks to pay interest on balances held at Reserve Banks to satisfy reserve requirements and on balances held in excess of required reserve balances and clearing balances (effective October 9, 2008, comments due November 21, 2008)
Press release and notice
Amendments setting the amount of total reservable liabilities of each depository institution subject to a zero percent reserve requirement and setting the amount of net transaction accounts at each depository institution subject to a three percent reserve requirement (effective November 3, 2008)
Notice
Amendment making annual adjustments to the amount of net transaction accounts used in calculating reserve requirements (effective October 31, 2007)
Press release and notice
Amendment revising the interpretation that sets out criteria for the bankers' bank exemption from reserve requirements (effective May 7, 2007)
Press release and notice
Amendment making annual adjustments to the amount of net transaction accounts used in calculating reserve requirements (effective November 24, 2006)
Press release and notice
Amendments (1) making annual adjustments to the amount of net transaction accounts used in calculating reserve requirements and (2) increasing the nonexempt deposit cutoff level and the reduced reporting limit, which are used to determine the frequency with which depository institutions must submit deposit reports (effective November 7, 2005)
Press release and notice
Amendment making annual adjustments to the amount of net transaction accounts used in calculating reserve requirements (effective November 12, 2004)
Press release and notice
Amendment making annual adjustments to the amount of net transaction accounts used in calculating reserve requirements (effective November 6, 2003)
Press release and notice
Amendment conforming the calculation of penalties for reserve deficiencies to the new discount-rate framework (effective January 9, 2003)

Not anywhere in there does it state that they have to penalize you, and the government doesn't see cash from your penalty. Your bank does.

Posted 2 years ago #
sjf
Canal Winchester
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My experience with institutions is that they will attempt to justify fees by saying they have extra rules to follow, which requires additional staff and work. I would find a manager--they should waive the fee for the first offense, especially if you can tell them specifically what you plan to do if you are still charged the fee. You could point to the previous instances where you were not charged--there's zero probability they'd charge you retroactively. Banks want to have deposits right now, so use that to your advantage.

Posted 2 years ago #
marymo

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Daz wrote >>
I'm pretty sure the woman you talked to was full of it then and trying to pass the blame.

Yeah, I use a credit union and have accidentally gone over the limit twice but never paid a charge. The first time I didn't know, so I called and they explained it and warned I would get a charge next time. The second time I called and explained why I went over (a weird one-time billing cycle thing) and they agreed to waive the charge. Also, my credit union allows me to make transfers over the phone without it counting toward the 6 transfers.

If I were you I'd look into other banks/credit unions and find one with a friendlier policy. The government only knows what your bank tells them. haha.

Posted 2 years ago #