Like Bank of America®, Chase also charges a fee when savings account customers haven’t even exceeded six withdrawals in the statement cycle.
In early April, Bank of America® fell deeper into the negative spotlight when it was revealed that customers were charged a $3 fee per withdrawal after their third withdrawal. Apparently, Chase also charges a similar preemptive fee on its most basic savings accounts.
According to the Chase SavingsSM account rules and regulations disclosure, customers are charged $3 for their fifth and sixth withdrawals and $12 per withdrawal thereafter.
Under Regulation D, federal rules limits the number of withdrawals and outgoing transfers from savings accounts and money market accounts to six per statement cycle. Traditionally, banks will charge a fee whenever a customer makes more than six withdrawals per month.
But, some banks are charging fees prior to the six-withdrawal limit to serve as precautionary warnings.
|Bank||Account||Excess Withdrawal Terms|
|Bank of America||Regular Savings||$3/withdrawal after the 3rd when balance is under $2,500|
|Chase||Chase Savings||$3/withdrawal after the 4th, $12/withdrawal after the 6th|
|Wells Fargo||All savings and money market accounts||$15/withdrawal after the 6th|
|Citibank||All savings and money market accounts||No fee for exceeding limits, but has right to close account after the 3rd violation|
|PNC Bank||Statement Savings||$3/withdrawal after the 3rd when balance is under $1,500, $15/ violation after the 1st in 12 statement cycles|
|U.S. Bank||All savings and money market accounts||$15/withdrawal after the 6th|
PNC Bank follows a model very similar to that of Bank of America® and Chase. For the PNC Bank Statement Savings account, a $3 fee is charged for each withdrawal after the third when the balance falls below $1,500.
The most lenient of the big banks is Citibank, which does not charge any fee when exceeding the withdrawal limits. But, it will take drastic action when a customer violates the limits three times.
The pre-limit charges implemented by Bank of America®, Chase, and PNC will anger many customers who become surprised when the fees show up on their statements. But, banks are making the case that these smaller, earlier charges will alert customers that they’re close to reaching the withdrawal limits – possibly helping customer to avoid a much larger excess withdrawal fee down the road.
All banks reserve the right to switch customers into a checking account or close the account if a customer continues to violate the regulations.
Excessive withdrawal fees on savings accounts have been instituted for many years, but the call for transparency in the financial industry has raised scrutiny regarding account disclosures and fee structures that tend to take advantage of banking customers.
It remains necessary for customer to be prudent and diligent when evaluating their financial habits and the bank’s account fee disclosures.