Thursday, January 8, 2009

It's Our Money - Let Us Do What We Want With It

I have been wanting to write about this for a long time and I am just now getting around to it. Did you know that you are only allowed a certain number of withdrawals/tranfers from your savings account before you accrue a penalty fee. This includes tranfers from your saving to another in house account...within the same bank. When I have a vacation or there is something special I want to buy and I am saving up for it over a matter of time, I would usually transfer some of the money for whatever it was that i wanted, from our checking into our savings account. That way it was "protected and out of the way"...out of our checking account. With it being in savings, I knew that I would not spend the money through the course of normal living and spending throughout the course of the month. Then when I had built up enough to get...let us say....airline tickets...I would transfer the cost of the airline tickets over from our savings account to our checking account and buy the tickets using our bank card. One year I did this around Christmas time. Transferring different ammounts of money from savings to checking when I found a gift that I wanted to buy Veronica. After the end of a statement period, I must have transfered more that 6 times. Because I went over the government mandated 6 transaction rule, I was penalized, I believe it was $20. I am not sure who got this money...whether it was the bank or the government. When I saw this penalty charged to our account, I called the bank up and was told that anyone who withdraws or transfers money more that 6 times from the savings account during a statement period gets the penalty. After doing a little research on line, here is what I found outr about this:

Section 204.2(d)(2) of Regulation D of the Federal Reserve Board:

…the depositor is permitted or authorized to make no more than six transfers and withdrawals, or a combination of such transfers and withdrawals, per calendar month or statement cycle… to another account (including a transaction account) of the depositor at the same institution or to a third party by means of a preauthorized or automatic transfer, or telephonic (including data transmission) agreement, order, or instruction, and no more than three of the six such transfers may be made by check, draft, debit card, or similar order made by the depositor and payable to third parties.

I have a real problem with this. People work very hard for their money and they should have the complete right to put the money in the bank or do what they want with it, ie moving it from one account to another, as they see fit. I don't feel that the government should be penalizing us because we aren't saving our money the way that they want us to. The same government that is penalizing us, is the same goverment that is at least a trillion dollars in debt and hasn't learned how to manage their own money. Doesn't make much sense to me...how about you?
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