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View Diary: New Bank Fee-for-All: Truly Despicable Charges (111 comments)

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  •  Heads up: TD Bank gets on the bad (sic) wagon (1+ / 0-)
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    buddabelly

    I just got a mailing from TD Bank crying poor because of recent banking industry regulations. Note: on their web site they claim to be one of the top 10 banks in the U.S. (mostly East Coast) and #2 in Canada. Here's the key paragraph:

    "Excess Withdrawal free on Savings and Money Market accounts - Federal regulation allows Customers to make up to six electronic transfers or withdrawals from a statement savings or money market account. This includes online, phone, check, automatic transfers and bill payments, and debit card purchases. Beginning December 3, 2011, if you make seven or more of these transactions during your statement month, you will be charged $9 for each transaction over six. Keep in mind, you can make unlimited withdrawals or transfers with our tellers or TD Band ATM at no charge."

    (Italic is TD bank's emphasis; Bold is my emphasis)

    Let's see, if each month I pay four (4) bills make two (2) transfers from savings to checking AND use my debit card just one (1) time, then I'm into overcharges at nine bucks a pop!  

    Their site also says they offer "a wide range of hassle-free accounts..." Yeah, right.

    Rather than simply pack up my dwindling dollars and take them to my credit union, I'd like to make a stink. Anyone with me? Post here, but if you have a savings or MM account, better to go down to the bank and give them an earful.  

    "We need, in every community, a group of angelic troublemakers..." -- Bayard Rustin

    by BK here on Fri Nov 11, 2011 at 01:35:26 PM PST

    •  This is not the purpose a savings account (4+ / 0-)

      The fee is there to discourage you from doing this, because it is a violation of Regulation D. If you violate it 3 times they will reclassify your account as a checking account. This is not up to the bank.

      In order to ensure that no more than the permitted number of withdrawals or transfers are made, for an account to come within the definition of “savings deposit,” a depository institution must either:

      (a) Prevent withdrawals or transfers of funds from this account that are in excess of the limits established by paragraph (d)(2) of this section, or

      (b) Adopt procedures to monitor those transfers on an ex post basis and contact customers who exceed the established limits on more than occasional basis. For customers who continue to violate those limits after they have been contacted by the depository institution, the depository institution must either close the account and place the funds in another account that the depositor is eligible to maintain or take away the transfer and draft capacities of the account. An account that authorizes withdrawals or transfers in excess of the permitted number is a transaction account regardless of whether the authorized number of transactions is actually made. For accounts described in paragraph (d)(2) of this section, the institution at its option may use, on a consistent basis, either the date on the check, draft, or similar item, or the date the item is paid in applying the limits imposed by that section.

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