Types of Withdrawals

• Banks set their policies regarding savings accounts withdrawals based on the type of transaction. In-person withdrawals are those that you make in a branch of your bank while speaking to a teller. ATM withdrawals occur at any automated teller machine, either in your bank, at one of your bank's remote ATMs or from another bank's machine. Online withdrawals and transfers fall into a separate category of transactions, and these withdrawals may have a different effect, depending on whether you deposit the money directly into a different account with the same bank (a transfer) or use it to pay a bill or make a payment online (an electronic withdrawal).
  
  

Number

• Banks may limit the number of withdrawals you can make from a savings account in a given month. In some cases, the bank will simply charge you an excessive withdrawal fee for each withdrawal you make over the limit but still allow you to take out the money. Other banks will refuse your request for a withdrawal once you exceed the maximum limit. The limits range from three to six per month, depending on the bank and the type of account. Some banks will allow you to make unlimited withdrawals from a savings account without any fee if you maintain a high minimum account balance, perhaps several thousand dollars.
  
  

Amount

• Banks may also limit the amount of money you can withdrawal from a savings account based on the type of transaction. While there are typically no maximum withdrawal amounts, other than the amount of the full account balance, for an in-person withdrawal there may be limits with ATM withdrawals. These regulations are intended as a security measure and will allow account holders to take only a certain number of bills from the machine in a single transaction. For example, some bank ATMs will dispense only 40 bills, for a maximum of $800, in a single withdrawal transaction from a savings account.
  
  

Related Policies

• Other bank policies can affect your savings account without necessarily affecting how and when you make withdrawals. For example, some banks charge a monthly maintenance fee, which appears as an automatic withdrawal. You may be able to avoid paying this fee if you set up a direct deposit into the account or maintain a minimum balance. Other policies that affect your savings account include the interest rate, which allows you to earn interest on your average account balance, and insurance from the Federal Deposit Insurance Corporation (FDIC), which protects your savings in the event of a bank failure.