The excess withdrawal fee is associated with savings accounts, and the fee is in place to prevent customers from withdrawing money too frequently from their accounts. Since savings accounts collect interest, they’re not meant to be accounts with frequent withdrawal activity, and the federal government has laws in place to prevent that from happening.

chicagogeek / Flickr |

chicagogeek / Flickr source

Under Federal Regulation D, you’re only allowed to withdraw from your savings accounts a maximum of six times a month, beyond which banks are allowed to either levy a fee, or if you violate the rules too many times, they can close your account altogether.

Federal Regulation D limits all outgoing transfers from savings and money market accounts to six per month, but does not have restrictions on the number of incoming transfers. Outgoing transfers include any transfers made through online banking, telephone banking, as well as ATM withdrawals.

Each bank varies on their excessive withdrawal policies, ranging from charging a small fee after a certain number of withdrawals, to charging a bigger sum, to not charging anything at all but retaining the right to close down an account due to excessive transfers.

See what the largest American banks charge for excessive withdrawals in the table below.

Bank of America$3 after 3 withdrawals
Wells Fargo$15
Citibank$0, but account is subject to close after 3x's over the withdrawal limit in 12 months
U.S. Bank$15
Capital One$10
SunTrust$4 after 2 withdrawals per month ($15 per withdrawal after 6 per month - MMA)
TD Bank$15
PNC Bank$3 for each withdrawal over 3 withdrawals
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  • Shelly

    This is stupid. It’s none of the governments business what I do with my own money.

  • Tania

    This information is wrong. I have a savings account with Suntrust and they only allow two withdrawals per month from the savings account. I found out the hard way when they slapped me with a $4.00 “excessive withdrawal fee” after my third withdrawal. To be fair, I should also add that, since this was the first time this had happened to me, they refunded the fee. So, Suntrust clients, be warned. It’s not 6 withdrawals…it’s only 2!!!

    • Simon Zhen

      Tania, thanks for pointing out the different fee structure. It happens to be that there are different excess withdrawal fees based on the accounts. For savings accounts, the fee is $4 per withdrawal after the 2nd for the month. (Yes, this is quite absurd.) For money market accounts, the fee is $15 after the 6th withdrawal for the month.

      The table has been updated to reflect the correct SunTrust fee policy.

      Other banks have said that they implement smaller fees at earlier withdrawal thresholds as “warnings” — they justify it by saying that these warnings will actually end up saving you more money compared to when you actually go over the 6-per-month limit.