Citibank Limiting Number of Transfers

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phil64
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Joined: Tue Oct 16, 2018 7:18 am

Citibank Limiting Number of Transfers

Post by phil64 » Thu Mar 21, 2019 7:47 am

Just saw a notice on Citibank web site that I had 3 remaining transfers from my Money Market account, noticed the same on my savings. The bank claims they must limit the number of transfers both internally and externally due to new government regulations. When I click through and read the new 20 page or so terms of service, I found I am limited to 6 transfers made electronically, by phone or ATM, but I can make as many transfers as I want using a teller. (Who uses a teller anymore?)

Just wondering if this is a legitimate government regulation or just Citibank's way of cutting costs, and has anyone else seen this from their banks?

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RickBoglehead
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Re: Citibank Limiting Number of Transfers

Post by RickBoglehead » Thu Mar 21, 2019 7:52 am

There has been a regulation in place for a long time that limits certain accounts to 6 withdrawals / transfers a month. Savings and MM bank accounts are included in that. I don't know of any new change.

With Ally Savings, I have multiple Savings accounts, so if I needed to do more than 6 per month I could.

A teller transaction is not considered "convenient", so it doesn't count.
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rich126
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Re: Citibank Limiting Number of Transfers

Post by rich126 » Thu Mar 21, 2019 7:53 am

That is a federal regulation that has been around for a while.

https://wallethacks.com/limit-6-ach-tra ... ount-rule/
Section 204.2(d)(2) of Regulation D of the Federal Reserve Board’s definition of a “savings deposit” defines the limit

FedGuy
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Re: Citibank Limiting Number of Transfers

Post by FedGuy » Sat Mar 23, 2019 3:07 pm

I am a longtime Citi customer. I was aware of the six transfer limitation but had been told that ATM transactions don't count towards that limit. The article that rich126 posted seems to support the view that ATM transactions don't count towards that limit, but the OP says that ATM transactions actually do count. Is that a change, or an error?

sport
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Re: Citibank Limiting Number of Transfers

Post by sport » Sat Mar 23, 2019 3:42 pm

I use a Vanguard money market fund. There are no limits on transactions. The interest rate is very competitive.

inbox788
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Re: Citibank Limiting Number of Transfers

Post by inbox788 » Sat Mar 23, 2019 3:54 pm

phil64 wrote:
Thu Mar 21, 2019 7:47 am
Just wondering if this is a legitimate government regulation or just Citibank's way of cutting costs, and has anyone else seen this from their banks?
Both, but likely more the latter.
Which transactions don’t count under the limit?
The following don’t count toward the six-transaction limit:

Withdrawals or transfers made at ATMs
Transactions made in person at a bank
Withdrawals made by telephone if the check is mailed to the depositor
Even though Reg D exempts these types of transactions from the six-transaction limit, some banks, such as Bank of America or Chase, may have their own rules to charge a penalty for making more than six such moves per month.
https://www.nerdwallet.com/blog/banking ... thdrawals/

https://en.wikipedia.org/wiki/Regulatio ... tion_limit

[I didn't read this one, but it's from the horses mouth]
https://www.federalreserve.gov/boarddoc ... _depos.pdf

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