Have you ever been charged a fee for transferring money out of your savings account one too many times? This fee is often referred to as an excessive withdrawal fee and, like most fees, no one likes seeing it show up in their account. Thankfully, if you're a member at First Alliance Credit Union, you can say goodbye to this fee.
Why Was This Fee Charged In The First Place?
The $5.00 excessive withdrawal fee has been previously in place due to our requirements to adhere to a federal ruling commonly referred to as Regulation D. This federal law required us to limit the number of convenience transactions on deposit accounts, such as your savings and money market accounts, to a maximum of six withdrawals per month.
What is considered a convenience transaction? Well, the short answer is withdrawals out of your savings or money market completed through online banking, over the phone, or via your debit card. However, withdrawals completed at an ATM, a branch, or via a mailed check does not count towards your withdrawal limit.
In the online world we live in this fee seems a bit outdated, right? We think so too.
Why Are We Able to Remove This Fee Now?
On March 29th, 2021 the Federal Reserve issued a update to the Regulation D ruling that has allowed First Alliance Credit Union to remove the convenience withdrawal limits and thus we are able to suspend the corresponding excessive withdrawal fee! It is important to note that removing the limits and the fees are not a requirement of the new Regulation D rulings, it is up to each bank or credit union to decide whether or not they will remove these limitations on their savings and money market accounts.
Which Of My Accounts Are Effected By This Change?
Effective May 5th, 2021, First Alliance Credit Union is removing the withdrawal limits and corresponding fee on several of our deposit accounts, including:
- Main Share Savings
- Sub-Share Savings
- Youth/Teen Savings
- Money Markets (under $100,000)
- Youth/Teen Money Markets
This means you will no longer be charged a $5.00 excessive withdrawal fee when you make more than six convenience withdrawals in a month from these accounts. This gives you more control over and access to your money at First Alliance Credit Union.
Pay Fewer Fees When You Bank With First Alliance Credit Union
As a credit union we don't like charging a fee unless we absolutely need to. That's why we are removing the excessive withdrawal fees on select deposit accounts effective May 5th, 2021. So, wave goodbye to another fee and reap the benefits of being a member at First Alliance Credit Union.
Not a member yet? You can join online in less than 5 minutes. Being a member at First Alliance Credit Union means you'll pay fewer fees and receive better rates on loans and savings accounts. Plus, have access to your money anytime, anywhere with our free and robust online and mobile banking platforms.