Dollar Limits on ACH or EFT transfers for online banking

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water2357
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Dollar Limits on ACH or EFT transfers for online banking

Post by water2357 »

I've been attempting to handle more transactions online. I've run into some restrictions on what types of accounts (checking, savings, money market, etc.) and how much one financial institution will allow you to transfer to another financial institution in one day. One institution (credit union) set the limit at $10,000 per day and that was either in or out, another (bank) had no limit in or out per day, etc.

Does anyone know how common it is for an institution to limit an ACH to $10,000 per day or why they would need to do this?

In any case it meant that even though I set up the ability to do transfers, it was kind of useless since the amount couldn't be moved in one day. I ended up writing a check. I really don't see why with all the online banking and the fact that companies convert checks to EFTs (you never get the check back), etc. that there would be a limit on how much can be transferred in a day.

Is this a government regulation for individual accounts as opposed to business accounts, or a safety precaution to prevent fraud or a credit union vs bank issue or what could be the reason for these limits?

Also the hold on the check was then ridiculously long, I could see the funds had cleared the original bank and the other institution sat on them for 9 days. Don't know what they do with an ACH transfer as far as holds, but at some banks they appear to be basically immediate. Before I try to work with yet another bank, really wondering what is usual bank/credit union practice for transferring funds electronically.

Thanks.
flyingcows
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Re: Dollar Limits on ACH or EFT transfers for online banking

Post by flyingcows »

I have accounts with 2 different large banks, and 3 brokerages.

I’ve done ACH transfers over $100,000 to/from bank and brokerage without any issue. None of the firms I use have any ACH limits that I am aware of

I have never used a credit union so I’m not sure what limits, if any, are typical in your case
othermike27
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Re: Dollar Limits on ACH or EFT transfers for online banking

Post by othermike27 »

In the last few weeks I have run into similar issues spreading out the proceeds of a house sale among CDs/online savings accounts. Alliant, the credit union I used to receive the house proceeds, limits ACH outgoing transfers to $25,000 per day, whether from savings or checking. They also still limit savings accounts to six outbound transfers per month, even though the Fed recently dropped this limit on all savings accounts. I like doing business with this CU so I'll keep the accounts, but it's one more thing to keep in mind when doing financial stuff.

For the last several years I have handled nearly all transactions online, but I'm still discovering new-to-me rules. For example, I knew about the 6-per-month withdrawal limit, but had never encountered the $25K daily limit. Turns out any larger ACH transfers I did were "pulled" from the receiving account that had no such limit. It seems that financial institutions set their own policies and it's worth making an effort to find out more than just the online FAQ-level info on any institution you are considering. Credit unions can be especially quirky.

I have found valuable bits of info in the Best CD Rates Thread at viewtopic.php?f=2&t=292085 It's a bit long and much of the early rate info is out of date, but there are some observations and experience reports sprinkled in that make it a worthwhile read if you're getting more involved in online banking.
crefwatch
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Re: Dollar Limits on ACH or EFT transfers for online banking

Post by crefwatch »

Bank of America has charged me $5 for 3-day service and $10 for one-day service. I had to do an extra authentication step for large amounts. Yes, it’s annoying. It was predicted that once Congress restricted overdraft fees that banks would develop other ways to make money. They did.
Retired2013
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Re: Dollar Limits on ACH or EFT transfers for online banking

Post by Retired2013 »

My mother had an account at Key Bank. Her limit was $2,000 per day. It took 3 transactions to move $5,000. No longer doing business with Key Bank.
arf30
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Re: Dollar Limits on ACH or EFT transfers for online banking

Post by arf30 »

I've used brokerages for high limit EFT, Fidelity is 250k/day and Schwab is probably similar. Banks around here have lower limits unless you've got a high end checking account or private banking status.
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JoMoney
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Re: Dollar Limits on ACH or EFT transfers for online banking

Post by JoMoney »

I can push or pull up to $250k with my Fidelity account online without talking to anyone. It used to limit me to $100k, then one day, after having made a couple large transfers, it suddenly was raised.
My local credit union will only let me do up to $5k through their online platform, but I can do more if I go in and talk to someone, or just initiate the transfer from a different account (i.e. my Fidelity account) and it doesn't prevent me from making a larger transfer.
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham
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tfb
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Re: Dollar Limits on ACH or EFT transfers for online banking

Post by tfb »

water2357 wrote: Mon Sep 14, 2020 2:45 am One institution (credit union) set the limit at $10,000 per day and that was either in or out, another (bank) had no limit in or out per day, etc.
Any limit is only set by the institution and it's only on ACH requests initiated by that institution. When a credit union has the limit at $10,000 per day either in or out, it does not stop another bank from depositing more than $10,000 into the credit union or withdrawing more than $10,000 from the credit union when the ACH request is initiated externally to the credit union. So if you have this credit union with the limit and this bank with no limit, when you need to transfer more than $10,000 per day, make your transfer request at the bank.
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tfb
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Re: Dollar Limits on ACH or EFT transfers for online banking

Post by tfb »

water2357 wrote: Mon Sep 14, 2020 2:45 am Also the hold on the check was then ridiculously long, I could see the funds had cleared the original bank and the other institution sat on them for 9 days. Don't know what they do with an ACH transfer as far as holds, but at some banks they appear to be basically immediate.
The hold is only on "pull" transactions (a transfer that debits the source account). If you don't want a hold, make it a "push" and request the transfer at the bank where you have the funds.
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water2357
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Re: Dollar Limits on ACH or EFT transfers for online banking

Post by water2357 »

Did not have any idea that the limits varied so widely. Will definitely be asking upfront about transfer limits from now on.

Also, did not realize that some credit unions/banks kept the 6 transactions per month limit after the Fed changed the rules.

And thanks for pointing out that I may be able to work with the other financial institution that has higher or no limits to get the funds transferred. When the credit union stated that I couldn't transfer in more than $10,000 I just assume that if I had the bank push transfer it, that the credit union wouldn't accept it.

And it also then sounds like I may be able to get the bank to pull the money out of the credit union when needed. Will have to check into this.

Thanks for all the examples and ideas.
mega317
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Re: Dollar Limits on ACH or EFT transfers for online banking

Post by mega317 »

Chase limits me to 25k. Kind of a pita.
https://www.bogleheads.org/forum/viewtopic.php?t=6212
random_walker_77
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Re: Dollar Limits on ACH or EFT transfers for online banking

Post by random_walker_77 »

arf30 wrote: Mon Sep 14, 2020 7:35 am I've used brokerages for high limit EFT, Fidelity is 250k/day and Schwab is probably similar. Banks around here have lower limits unless you've got a high end checking account or private banking status.
Yes, brokerages seem to have high limits. Schwab was 100K per transfer, and I seem to recall that you can have more than one such transfer in a day. Vanguard can move at least as much as Fidelity in a single transfer, but I'm not sure exactly where there limit is.

Keep in mind that at some large amount, the couple of days worth of lost interest during the ACH transfer might make it cheaper to pay wire transfer fees, depending on size of those fees relative to the amount of lost interest.
random_walker_77
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Re: Dollar Limits on ACH or EFT transfers for online banking

Post by random_walker_77 »

In this post, user "sandtrap" posted that vanguard customer service told him that Vanguard has a very high ACH pull limit of 50M:
viewtopic.php?p=3181517#p3181517

That's effectively unlimited, as far as I'm concerned. I certainly hope that an ACH request of that magnitude involves some phone calls...
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goingup
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Re: Dollar Limits on ACH or EFT transfers for online banking

Post by goingup »

I always "pull or push" money from my broker institution to my brick and mortar bank. Never hit the limit yet. Don't start the transaction from your credit union. :beer
GiraffeGlove
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Re: Dollar Limits on ACH or EFT transfers for online banking

Post by GiraffeGlove »

Ally Bank allows $150,000 per day and $600,000 per month. When you're moving money around to purchase real estate, it's really a pain to have super low ACH limits, Ally has been great.
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