Compare Excess Withdrawal Fees at Top U.S. Banks

ATM machines at TD Bank
ATM machines at TD Bank

Savings accounts differ from checking accounts in several ways. Besides being able to earn interest, savings accounts can also charge an excess withdrawal fee -- a fee nonexistent in the realm of checking accounts.

Designed to keep money in the bank to build interest, savings accounts are a great place to park your money. But constant withdrawals from a savings fund should be avoided, as that will not only hamper your ability to save, but you will also incur an annoying fee.

Compare the excess withdrawal fees at the top banks in America:

Excess withdrawal fee

Regulation D limits certain types of withdrawals and transfers from savings or money market accounts to a total of six per monthly statement period.

Banks will generally not charge a fee until you exceed this limit, but some may start charging a small fee after the second or third withdrawal from a savings account.

Remember that the first six withdrawals are legal transactions. So typically after the sixth withdrawal, you will be charged excess withdrawal fees.

Savings Withdrawal Fees at Top U.S. Banks

Bank Savings Withdrawal Fee Maximum # Of Fees Charged Monthly
Bank of America $10 after the first 6 withdrawals (fee waived if you maintain $20,000 in account) 6
Chase $5 after the first 6 withdrawals (fee waived for Chase Premier Savings accounts with a balance of $15,000 or greater, or $25,000 or greater in Chase Business Premier Savings accounts) 6
Citibank Does not charge No maximum
U.S. Bank $15 after the first 6 withdrawals 6
PNC Bank $15 after the first withdrawal No maximum
Capital One $10 after the 6 allowed No maximum
TD Bank $9 after the first 6 withdrawals for Money Market/Savings accounts (fee waived for Savings Overdraft Protection transfers)

$3 after the first 3 withdrawals for Club Accounts
6
BB&T $3 after the first 3 withdrawals for Regular Savings accounts

$15 after the first 6 withdrawals for MoneyRate Savings accounts
No maximum
SunTrust $6 after the first 6 withdrawals for Select Savings, Personal Savings, and Essential Savings accounts

$15 after the first 6 withdrawals for Signature Money Market Savings accounts
6
Ally Bank $10 after the first 6 withdrawals No maximum
Union Bank $15 after the first 6 withdrawals No maximum
Wells Fargo $15 after the first 6 withdrawals 3
Regions Bank $3 after the first 3 withdrawals No maximum
Synchrony Bank No excess withdrawal fee No charge, but if this happens on more than occasional basis, the bank reserves the right to close the account for misuse
Santander Bank $5 after the first 6 withdrawals No maximum, plus if you repeatedly exceed these limits, Santander will convert your account to a non-interest bearing checking account
Discover Bank No excess withdrawal fee No charge, but if this happens on more than occasional basis, the bank reserves the right to close the account

Note that these figures are reflective of fees for the New York region.

Though the same fee at any given bank tends to be consistent across the country, certain fees may vary depending on where you live.

We advise that you check with your local branch for the most accurate fee policy.

Excess withdrawal fee compared

According to banking analysis by MyBankTracker, it will cost you anywhere from $0 for every excess withdrawal made beyond the allowed amount at banks like Synchrony and Citibank all the way to $15 at banks like PNC and Discover

Why is there such a wide range of excess withdrawal fees at the top banks?

Banks simply have different policies in regards to how they implement excessive withdrawal fees to limit their customers from going beyond the six withdrawals allowed by law.

Different methods & fees

While charging after the six-per-month withdrawal limit is the industry standard, some banks take different approaches.

For example, BB&T and Regions Bank both charge a $3 fee after a customer makes three withdrawals out of a savings account per statement cycle (so this means that you will not be charged until the fourth withdrawal you make from your savings account from these banks).

Consider that low fee in comparison to the $15 PNC charges for the first withdrawal you make.  

Similarly, Chase Bank and Bank of America offer a variation of fees for withdrawing from your savings accounts depending on your banking status.

For Bank of America, if you maintain $20,000 in your savings account, their fee of $10 will be waived.

Additionally, for Chase, their fairly low $5 excess withdrawal fee will be waived if  you can maintain a balance of $15,000 or greater in your Chase Premier Savings account, or $25,000 or greater in your Chase Business Premier Savings account. 

Transactions that lead to excess withdrawals

During any monthly statement period, you may make no more than six withdrawals or transfers out of these accounts through online banking or by any other electronic means.

This includes preauthorized transfers made from your savings account (including transfers for overdraft protection), telephone, online banking or bill payment.

It also includes transfers by check, draft or debit card -- if it is allowed on your savings account.

Transactions that do not lead to excess withdrawals include those made in person or through an ATM machine, a check, messenger, or at a branch.

These transactions will not be counted towards the allowed six withdrawals for the month.

Note that banks will count a transaction on the date it's posted to your savings account.

This date may be different from the date you authorize, which means it may be counted on your next statement cycle, depending on when you make it.

Excess withdrawal consequences

When excess withdrawals start to pile up on your savings account, your bank may contact you.

If excessive withdrawals beyond the limit of six continue to occur, the bank may close the account or convert it to an account without transfer limitations (such as a checking account).

Note that checking accounts pay little or no interest on the funds. Some banks will simply refuse to honor any additional transactions after the six allowed per month.

For example, Citibank does not have a fee for excess withdrawal transactions because it's not allowed.

The bank will simply refuse the transaction and you will not be charged for it. However, they may then convert your savings into a checking account.

Either way, you shouldn't withdraw from your savings account too many times, as you might lose the benefit of holding money in an account that can build interest.

Avoiding excess withdrawal fee

There are several ways you can avoid excess withdrawal fees. For one, it is recommended that you do not use a savings account as your online bill payment account because there are limits on electronic transfers.

Instead, you should withdraw money directly from a branch or at an ATM since there are no limits on these transactions.

Another trick is to open multiple savings accounts in case you need to make withdrawals out of them.

Here are some most popular online savings accounts:

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Ask a Question

disqus_gTgfwzwHfF
Friday, 20 Sep 2019 12:29 PM
<p>Are you high, stopping excessive withdrawals so the customer can earn interest, the rate of earned interest for savers is near zero. The withdrawal fee is probably just another cash grab by banks!</p>