Answers about Interest-Bearing Accounts
The bank no longer pays interest on my Money Market account because I wrote too many checks. Can it do this?
Three types of accounts—money market accounts, passbook accounts or statement savings accounts—are limited to no more than six transfers and withdrawals per calendar month or per statement cycle.
No more than three of the six transfers may be made by check, draft, or debit card. The other transfers can be made by pre-authorized or automatic transfer, telephonic agreement, order, or instruction.
The bank must prevent either withdrawals or transfers of funds that are in excess of these limits. If you exceed the prescribed limits on more than an occasional basis, the bank must do one of three things:
- close the account
- place the funds in another account (one that does not limit the number of transactions and may or may not earn interest)
- take away the transfer and draft capabilities of the account