topic Re: Dumb Question... in Credit Cards

Dumb Question...

OnTheRebound — Sat, 17 Mar 2012 03:31:03 GMT

regarding payment method.

Is it possible to pay credit cards with a savings account only? I mean a savings account without a checking account attached to it. Whenever I try to set up a new payment method at one of my online credit card accounts and I click "savings" it asks for a routing number. I don't believe stand alone saving accounts have routing numbers. Only checking accounts. Am I correct?

I have a few dollars stashed in this savings account that I want / would like to pay some of of my online accounts. However, when I try to set up Billpay through this account it says I have to have a checking account attached.

Help!

Re: Dumb Question...

Anonymous — Sat, 17 Mar 2012 03:36:35 GMT

Banks do use routing numbers with savings accounts. I'd call your bank and ask them for the routing number.

Re: Dumb Question...

LS2982 — Sat, 17 Mar 2012 12:21:06 GMT

@OnTheRebound wrote:
regarding payment method.

Is it possible to pay credit cards with a savings account only? I mean a savings account without a checking account attached to it. Whenever I try to set up a new payment method at one of my online credit card accounts and I click "savings" it asks for a routing number. I don't believe stand alone saving accounts have routing numbers. Only checking accounts. Am I correct?

I have a few dollars stashed in this savings account that I want / would like to pay some of of my online accounts. However, when I try to set up Billpay through this account it says I have to have a checking account attached.

Help!

Stand alone savings accounts do have routing numbers, you have to get that information from the bank.

IMO, a savings is just that, savings. Why not open a checking account for business transactions?

Re: Dumb Question...

Repo-ed — Sat, 17 Mar 2012 12:32:32 GMT

Just say no to using savings accounts to pay CCs. UNLESS of course, it is a BoA savings account, and it's only making you %0.05 anyway....

Re: Dumb Question...

missji — Sat, 17 Mar 2012 12:34:51 GMT

No accounts have routing numbers. BANKS have routing numbers. Contact your bank to find out the routing number for your location (some have many).

Re: Dumb Question...

Repo-ed — Sat, 17 Mar 2012 12:35:27 GMT

@missji wrote:
No accounts have routing numbers. BANKS have routing numbers. Contact your bank to find out the routing number for your location (some have many).

Good point. BoA has SEVERAL routing numbers.

Re: Dumb Question...

missji — Sat, 17 Mar 2012 12:49:40 GMT

@Repo-ed wrote:
@missji wrote:
No accounts have routing numbers. BANKS have routing numbers. Contact your bank to find out the routing number for your location (some have many).
Good point. BoA has SEVERAL routing numbers.

Yep, they sure do!

Re: Dumb Question...

marty56 — Sat, 17 Mar 2012 13:13:46 GMT

I can pay my RBFCU online from either my checking account or savings account.

Re: Dumb Question...

Anonymous — Sat, 17 Mar 2012 13:25:36 GMT

A lot of banks have several routing numbers, it just depends on which state you live in.

For example, Chase has a routing number specifically for New Jersey.

The system truly doesn't discriminate between "checkings" or "savings" just as long as you have the routing number and the correct account number, it can pull from both just as well.

If you are unsure about your routing number, just call your local branch, but a Google search like this should suffice:

"Routing number Chase Bank New Jersey"

Re: Dumb Question...

Anonymous — Sat, 17 Mar 2012 14:30:49 GMT

@missji wrote:
@Repo-ed wrote:
@missji wrote:
No accounts have routing numbers. BANKS have routing numbers. Contact your bank to find out the routing number for your location (some have many).
Good point. BoA has SEVERAL routing numbers.
Yep, they sure do!

I believe part of the reason that BoA has multiple routing numbers is that they have aquired/merge with many banks in the past. I still use the original routing # I had with BayBank which became Bank of Boston which became Bank of America through mergers.

Re: Dumb Question...

OnTheRebound — Sat, 17 Mar 2012 16:22:17 GMT

@LS2982 wrote:
Stand alone savings accounts do have routing numbers, you have to get that information from the bank.

IMO, a savings is just that, savings. Why not open a checking account for business transactions?

Because I don't want an additional checking account. We have a checking (and savings) account at another CU that I use to pay our monthly expenses. Unfortunately, we have to, on occasion, dip into our savings to pay for unexpected expenses. For example, this week we had over $600 in home repairs that I charged to my CC that I would like to pay directly from this stand alone savings account. I would also like to use this account to pay for large purchases, such as TV, furniture, tires.

Thanks to all for enlightening me.

ETA: I earn a whopping .19 % on this account.

Re: Dumb Question...

haulingthescoreup — Sat, 17 Mar 2012 16:28:44 GMT

@OnTheRebound wrote:
LS2982 wrote: Stand alone savings accounts do have routing numbers, you have to get that information from the bank.

IMO, a savings is just that, savings. Why not open a checking account for business transactions?
Because I don't want an additional checking account. We have a checking (and savings) account at another CU that I use to pay our monthly expenses. Unfortunately, we have to, on occasion, dip into our savings to pay for unexpected expenses. For example, this week we had over $600 in home repairs that I charged to my CC that I would like to pay directly from this stand alone savings account. I would also like to use this account to pay for large purchases, such as TV, furniture, tires.

Thanks to all for enlightening me.

ETA: I earn a whopping .19 % on this account.

Makes sense to me. Savings accounts are so flexible these days, and the interest so pitiful, that it can make sense to use them as a second checking account for special expenses.

Re: Dumb Question...

LS2982 — Sat, 17 Mar 2012 19:51:25 GMT

@OnTheRebound wrote:
@LS2982 wrote:
Stand alone savings accounts do have routing numbers, you have to get that information from the bank.

IMO, a savings is just that, savings. Why not open a checking account for business transactions?

Because I don't want an additional checking account. We have a checking (and savings) account at another CU that I use to pay our monthly expenses. Unfortunately, we have to, on occasion, dip into our savings to pay for unexpected expenses. For example, this week we had over $600 in home repairs that I charged to my CC that I would like to pay directly from this stand alone savings account. I would also like to use this account to pay for large purchases, such as TV, furniture, tires.

Thanks to all for enlightening me.

ETA: I earn a whopping .19 % on this account.

That makes more sense.

Re: Dumb Question...

Repo-ed — Sun, 18 Mar 2012 01:05:01 GMT

I was able to get a .9% rate with amex personal savings. MANY years of NOTHING % from BoA.

Re: Dumb Question...

trumpet-205 — Sun, 18 Mar 2012 02:42:39 GMT

Keep in mind that federal law mandates that you can only do six withdraws per month on a savings account before adverse action being imposed (savings account being closed or being charged a withdraw fee).

OP, savings account do have routing number. Call your bank/CU and ask the number from them. Don't use Billpay, instead get the routing number + account number and pay it on credit card's website.

Re: Dumb Question...

MarineVietVet — Sun, 18 Mar 2012 02:40:38 GMT

@trumpet-205 wrote:
Keep in mind that federal law mandates that you can only do six withdraws per month on a savings account before adverse action being imposed (savings account being closed or being charged a withdraw fee).

OP, savings account do have routing number. Call your bank/CU and ask the number from them. Don't use Billpay, instead get the routeing number + account number and pay it on credit card's website.

That's if you do more than 6 in a statement period online. If you go into a branch or use an ATM there are no limits.

At least that is how Wells Fargo does it. I can only speak of my experience.

Re: Dumb Question...

frogfan12 — Sun, 18 Mar 2012 02:43:38 GMT

I've used a savings account several times to pay CCs off/down. I'm about to do the same in a few weeks myself to lower my util.

Re: Dumb Question...

trumpet-205 — Sun, 18 Mar 2012 03:27:10 GMT

@MarineVietVet wrote:
@trumpet-205 wrote:
Keep in mind that federal law mandates that you can only do six withdraws per month on a savings account before adverse action being imposed (savings account being closed or being charged a withdraw fee).

OP, savings account do have routing number. Call your bank/CU and ask the number from them. Don't use Billpay, instead get the routing number + account number and pay it on credit card's website.
That's if you do more than 6 in a statement period online. If you go into a branch or use an ATM there are no limits.

At least that is how Wells Fargo does it. I can only speak of my experience.

From Federal Reserve --> Regulation D §204.2(d)(2):

The term “savings deposit” also means: A deposit or account, such as an account commonly known as a passbook savings account, a statement savings account, or as a money market deposit account (MMDA), that otherwise meets the requirements of §204.2(d)(1) and from which, under the terms of the deposit contract or by practice of the depository institution, the depositor is permitted or authorized to make no more than six transfers and withdrawals, or a combination of such transfers and withdrawals, per calendar month or statement cycle (or similar period) of at least four weeks, to another account (including a transaction account) of the depositor at the same institution or to a third party by means of a preauthorized or automatic transfer, or telephonic (including data transmission) agreement, order or instruction, or by check, draft, debit card, or similar order made by the depositor and payable to third parties.

A preauthorized transfer includes any arrangement by the depository institution to pay a third party from the account of a depositor upon written or oral instruction (including an order received through an automated clearing house (ACH)) or any arrangement by a depository institution to pay a third party from the account of the depositor at a predetermined time or on a fixed schedule.

Such an account is not a transaction account by virtue of an arrangement that permits transfers for the purpose of repaying loans and associated expenses at the same depository institution (as originator or servicer) or that permits transfers of funds from this account to another account of the same depositor at the same institution or permits withdrawals (payments directly to the depositor) from the account when such transfers or withdrawals are made by mail, messenger, automated teller machine, or in person or when such withdrawals are made by telephone (via check mailed to the depositor) regardless of the number of such transfers or withdrawals.

In order to ensure that no more than the permitted number of withdrawals or transfers are made, for an account to come within the definition of “savings deposit,” a depository institution must either:

(a) Prevent withdrawals or transfers of funds from this account that are in excess of the limits established by paragraph (d)(2) of this section, or

(b) Adopt procedures to monitor those transfers on an ex post basis and contact customers who exceed the established limits on more than occasional basis. For customers who continue to violate those limits after they have been contacted by the depository institution, the depository institution must either close the account and place the funds in another account that the depositor is eligible to maintain or take away the transfer and draft capacities of the account. An account that authorizes withdrawals or transfers in excess of the permitted number is a transaction account regardless of whether the authorized number of transactions is actually made. For accounts described in paragraph (d)(2) of this section, the institution at its option may use, on a consistent basis, either the date on the check, draft, or similar item, or the date the item is paid in applying the limits imposed by that section.

In simple English,

* When the money inside your savings account transfers to another person's account and/or financial institution (online transfer, phone transfer, debit card, credit card payment for different financial institution, another account under your name at different financial institution, etc), you may make no more than six transactions per month or statement consists of four weeks.

* When the money inside your savings account goes to your pocket (ATM withdraw, withdraw money at branch office, transfer money to another account under your name at the same financial institution, etc), then it does not count toward the six transaction limit.

* If you exceeded six transactions limit, financial institutions are required to stop further transaction, impose penalty fee, or close your savings account.

In the case of OP, using savings account to pay credit card bill counts in the six withdraws limit, unless both accounts are under the same financial institution.

Re: Dumb Question...

MarineVietVet — Sun, 18 Mar 2012 03:13:44 GMT

I appreciate the information but I can only relate what I was told by WF. That there are no limits if done in person or by ATM.

Of course there is always the caveat that the rep telling me that was a little less than correct.

Re: Dumb Question...

OnTheRebound — Sun, 18 Mar 2012 03:40:57 GMT

My CU allows six withdrawals per statement period. I don't intend to use this savings account like a checking account. That would be silly. Why bother with a savings account if you are going to continually withdraw from it. I have a checking account at another CU for monthly expenses. I don't anticipate making making more than six withdrawals per year...maybe. I don't always have to dip into my savings for extra expenses but sometimes things get tight. I just thought this would be a convenient payment method for emergencies.