What are Convenience Transfers?
"Convenience" Transfers and withdrawals subject to this regulation are:
Transactions made in person or in writing are not considered Convenience Transfers.
What is the limit on Convenience Transfers?
The limit is not more than six per calendar month. The Federal regulation governing this limit is commonly known as Federal Reserve Board Regulation D; the purpose of this regulation is to prevent people from using savings accounts like checking accounts.
Does the limit of six apply to me as a member or to each Savings Account I have?
You can make up to six transfers a month from each of your Savings Accounts. For example, a member with three non-checking accounts (a regular Savings Account, a Christmas Club Account and an Elite Money Market Account) could make up to six convenience transfers per month from each one of these accounts-resulting in a total of 18 possible tranfers in a given month (6 per each account).
I understand that monthly bills that are set up to be automatically debited from a Savings Account are considered Convenience Transfers. What can I do to avoid problems?
Switch all bill payments you may have set up directly with a third party to be withdrawn directly out of your Checking Account. For example, if your phone bill is set up to debit your Savings Account, contact the phone company to have it drawn out of your Checking Account. Your Checking Account number can be found at the bottom of your Sb1 checks.
What if I pay bills monthly but don't have a Checking Account?
You can continue paying them from a Savings Account but be aware that bill payments and all other Convenience Transfers are limited to six per month. You could open a Checking Account and redirect the debits.
Does Direct Deposit going into my Savings Account count toward the limit of six?
No, deposits never count toward the limit. Sb1 will allocate a portion of a Direct Deposit to other accounts at your request. These allocations are not Convenience Transfers. A best practice is to set up Direct Deposits to go into a Checking Account.
By doing so you eliminate the need to make Convenience Transfers from your savings. You can make an unlimited number of transfers from a Checking Account.
In addition, Sb1 can automatically allocate funds from a Checking Account to any other account upon your request.
I like the convenience of automatic overdraft protection in case my funds are short in my Checking Account. Can I still count on that happening?
Yes, but overdraft transfers are limited to 6 per month from each Savings Account. We suggest maintaining sufficient funds in your Checking Account so that automated transfers from savings are not needed. Sb1 offers Overdraft Protection from multiple Savings Accounts as well as the option to setup a QUICKCA$H Line-of-Credit for transfers.
You must set up additional accounts if you want to take advantage of this service.
When I'm on the Internet and want to buy something should I use PayPal or authorize a debit from my Savings Account?
When using services like PayPal, you should authorize such debits from your Checking Account. We recommend making purchases with your Sb1 Visa Credit Card or your Sb1 Visa Check Card.
"Convenience" Transfers and withdrawals subject to this regulation are:
- Automated Overdraft Protection transfers from a Savings Account to cover a check.
- Preauthorized or automated (ACH) payments originated by a third-party from a Savings or Money Market Account.
- NetBanker transfers from a Savings or Money Market Account, with the exception of payments to your Sb1 loan(s).
- Telephone Teller transfers from a Savings or Money Market Account, with the exception of payments to your Sb1 loan(s).
- Internet initiated payments (like PayPal) from a Savings or Money Market Account.
Transactions made in person or in writing are not considered Convenience Transfers.
What is the limit on Convenience Transfers?
The limit is not more than six per calendar month. The Federal regulation governing this limit is commonly known as Federal Reserve Board Regulation D; the purpose of this regulation is to prevent people from using savings accounts like checking accounts.
Does the limit of six apply to me as a member or to each Savings Account I have?
You can make up to six transfers a month from each of your Savings Accounts. For example, a member with three non-checking accounts (a regular Savings Account, a Christmas Club Account and an Elite Money Market Account) could make up to six convenience transfers per month from each one of these accounts-resulting in a total of 18 possible tranfers in a given month (6 per each account).
I understand that monthly bills that are set up to be automatically debited from a Savings Account are considered Convenience Transfers. What can I do to avoid problems?
Switch all bill payments you may have set up directly with a third party to be withdrawn directly out of your Checking Account. For example, if your phone bill is set up to debit your Savings Account, contact the phone company to have it drawn out of your Checking Account. Your Checking Account number can be found at the bottom of your Sb1 checks.
What if I pay bills monthly but don't have a Checking Account?
You can continue paying them from a Savings Account but be aware that bill payments and all other Convenience Transfers are limited to six per month. You could open a Checking Account and redirect the debits.
Does Direct Deposit going into my Savings Account count toward the limit of six?
No, deposits never count toward the limit. Sb1 will allocate a portion of a Direct Deposit to other accounts at your request. These allocations are not Convenience Transfers. A best practice is to set up Direct Deposits to go into a Checking Account.
By doing so you eliminate the need to make Convenience Transfers from your savings. You can make an unlimited number of transfers from a Checking Account.
In addition, Sb1 can automatically allocate funds from a Checking Account to any other account upon your request.
I like the convenience of automatic overdraft protection in case my funds are short in my Checking Account. Can I still count on that happening?
Yes, but overdraft transfers are limited to 6 per month from each Savings Account. We suggest maintaining sufficient funds in your Checking Account so that automated transfers from savings are not needed. Sb1 offers Overdraft Protection from multiple Savings Accounts as well as the option to setup a QUICKCA$H Line-of-Credit for transfers.
You must set up additional accounts if you want to take advantage of this service.
When I'm on the Internet and want to buy something should I use PayPal or authorize a debit from my Savings Account?
When using services like PayPal, you should authorize such debits from your Checking Account. We recommend making purchases with your Sb1 Visa Credit Card or your Sb1 Visa Check Card.