@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.
