Saving Account Withdrawal Limit

Saving Account Withdrawal Limit

Last Updated: 29th Jan 2020

In the article, we are going to talk about saving account withdrawal limit for different bank accounts and how you can withdraw them.

Different Ways to Withdraw Money From a Savings Account

#1. Withdraw at an ATM

For this, you need to have your debit card set up with your account to withdraw money from your account.

Using your bank ATM this best practice as other ATM transactions may incur fees.

If you have more than one account ( Saving or checking) specify savings account in the on-screen instructions.

Enter the amount you wish to withdraw. Wait for the machine to process the transaction. Collect your cash receipt and card thereafter.

You can also use a debit card for shopping.

Your debit card is linked with your checking account while your ATM card is linked with your savings account

#2. Withdraw at a Bank

To make a withdrawal at bank, you need to fill up a withdrawal slip which includes your name, account number and amount you want to withdraw.

You can get a withdrawal slip at your bank.

Give your withdrawal slip to a teller and provide photo ID if needed.

Upon verification, the teller will issue the money along with a receipt.

Also readBarclays Savings Account Review

#3. Access Your Account Online

If your bank has the facility of internet banking and you have it enabled, this is a convenient option to transfer money from your savings to checking the account for your daily needs.

Most banks consider this as transfer and not as withdrawals because the money is not transferred outside the bank.

These transfers are convenient as they happen instantaneously.

You can also use mobiles to withdraw money at ATM machines. Instead of PIN, you need to scan a code to withdraw money.

You need to download the mobile application first in order to use this. Wells Fargo, Bank of America and Chase have this feature.

With all these methods, there is a limit of 6 withdrawals per month.

The six-per-month limit applies to these types of savings account transactions

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  • Transfers made by computer, mobile phones
  • Electronic funds transfers (EFTs)
  • Checks to the third party
  • Overdraft chances
  • Debit card transactions
  • Automated clearing house (ACH) transfer

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These do not count as transactions

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  • ATM withdrawals at banks and In-person transactions at the bank

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Why the limit?

Federal Reserve Board Regulation D limits transactions from a savings account to 6 per month.

This is because the money you deposit in your savings account is used by banks to issue a loan to other people.

That is how you are able to earn interest on your money.

If everyone starts using a savings account as a makeshift checking account, the bank will be out of reserves.

To avoid this situation is put in place

Saving Account Withdrawal Limit

Withdrawal limit differs from bank to bank. Here is the list of banks with their ATM withdrawal limit for your reference.

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Bank Name Daily ATM Withdrawal Limit Daily Debit Purchase Limit
Bank of America $1,000 $5,000
BB&T $500-$1,500 $3,000-$6,000
Capital One $610 $2,500
Chase Bank $400-$500 $400-$3,000
Citibank $1,000-$2,000 $5,000-$10,000
HSBC $500-$1,000 $3,000
Huntington National Bank $400 $400
M&T Bank $500 $2,500
PNC Bank $100-$1,500 $100-$9,500
Regions Bank $800 $5,000
Santander $1,000-$2,500 $5,000-$11,500
SunTrust $500-$2,500 $3,000-$30,000
TD Bank $750 $5,000
U.S. Bank $500 $1,000
Wells Fargo $300 $2,000

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Things to note regarding withdrawal limit

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  • The above-listed limits may not apply when you open your account. Some banks like Chase and Bank of America set these limits based on your financial history.
  • It is best practice to ask at a bank branch or service representative about the limits beforehand to avoid penalty fees.
  • Your ATM withdrawal limit and daily debit card spending limit is often depending on the type of account you have at the bank. For example, student account has lower limits while premium accounts generally have higher limits.
  • Regulation D does not restrict transaction on ATM withdrawal at a bank branch and in-person withdrawals.

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Also find outBest savings account of 2020

Tips on How to Increase Saving Account Withdrawal Limit

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  • If you are in need of more cash in hand, there are ways to increase your ATM withdrawal limit.

Most of the banks allow raising the limits albeit not by much, you can check with your bank to negotiate higher limits.

If you are a long time customer, banks are generally willing to raise the limits.

  • If you are not satisfied with the limit, you can opt for upgrading your account that has higher ATM withdrawal limits or finds a new bank that meets your requirement.
  • Another workaround for more cash in your wallet is using the cash back option when using a debit card at a store.

You can pay an extra amount on top of the billed amount and the cashier will hand you extra money you paid.

This is a nifty way of reducing ATM Withdrawals.

  • It is important to remember that the cash received through cashback will also count under your daily debit purchase limit.

It is important to inform bank during this kind of transactions so that banks won’t consider these as fraudulent activity.

  • You can also approach your bank for temporary adjustment to your withdrawal limit if you are planning on an expensive purchase.
  • If you are looking for a permanent increase in ATM withdrawal limit, upgrading your account in your existing bank or applying for a new account in other banks that has a higher limit is the way to go.

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However, approval for accounts with a higher withdrawal limit involves meeting more requirements like having a certain amount of deposits in a period, maintaining average monthly balance.

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