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that needs to be in a savings account? 2. Are there limits on the number of withdrawals on a savings account? 3.How much money do I need to open a checking account? 4.Do I need a savings account to open a checkings account? 5. What is the minimum deposit amount for a six month Certificate of Deposit? How about for a 1 year CD? Which account is best for me if I plan to withdraw money frequently? I was assigned by my teacher to ask a couple questions to a bank about financial literacy. Thank you in advance.
November 16, 2014 05:05:24 PM
In reply to Isabelle, Orlando
Hi Isabelle, thanks for connecting with us at TD Helps with your questions. This sounds like a great assignment! We'll try to answer all of your questions in order:
Although there is no minimum deposit required to open a Savings Account, on some of our accounts, there is a monthly maintenance fee and a minimum daily balance that we ask you to keep in order to avoid this fee. If your account falls below the required daily minimum balance for your account, the maintenance fee would be assessed on the last day of your statement cycle. You can review the requirements for each specific account and identify the required minimum daily balance necessary to avoid this fee here: http://bit.ly/1pJT9I9.
In regards to your question about withdrawal limits on a Savings Account – yes, Savings & Money Market accounts are regulated by the governmental Regulation D, a restriction which limits the amount of pre-authorized debits per statement cycle. This regulation does not restrict any deposits made into a savings account, only debits or transfers out of the account. The limitations on Money Market and Savings accounts include up to 6 debits per statement period of the following transaction types:
-Pre-authorized ACH – Automated Clearing House debits (health club fees, insurance premiums, car payments, mortgage payments, generally any bill payment)
-Pre-authorized transfers (overdraft protection, transfer to checking account, transfer to any other account)
-TD Bank Online Banking and Telephone Banking transfers (debited from the money market or savings account)
-Request made by phone or fax for transfers out of the account
-Wire transfers from the Savings or Money Market account
Please review pages 6 & 7 of our Personal Deposit Account Agreement here http://bit.ly/1kb17UQ for more information about this regulation. You may also find more information about this regulation directly on the Federal Reserve website http://1.usa.gov/1FrBCMm. Please take a look here if you have any questions about the fee schedule for your account type: http://bit.ly/1cTejgt.
If you happen to exceed the transaction limit during a statement period, you will be notified on the first two occurrences by letter via mail. Please note, on the third occurrence, Personal Savings Accounts are automatically converted to a Transaction Savings Account and you will be informed in writing of the changes. Depending on the original account type, this change may reduce the interest rate and earnings.
Like our Savings Accounts, there is no minimum deposit required to open a Checking Account; however on some of our accounts, there is a monthly maintenance fee and a minimum daily balance that we ask you to keep in order to avoid that fee. Just like a Savings Account, if your account falls below the required daily minimum balance for your Checking Account, the maintenance fee would be assessed on the last day of your statement cycle. You can review the requirements for each specific Checking Account and identify the required minimum daily balance necessary to avoid this fee here: http://bit.ly/1f9fEn9. Also, there is no requirement to have a Savings Account with us if you want to open a Checking Account. Many Customers choose to open a Checking Account or a Savings Account and in some cases both.
Moving onto our Certificates of Deposit (CDs), TD Bank currently offers a wide range of terms ranging from 3 months to 7 years. With all of our CDs, we do require a minimum initial deposit amount of $250 for each CD. On certain CDs, additional deposits can also be made after the CD is opened. For more information about CDs, please take a look here: http://bit.ly/1mLvOG8.
Withdrawals can be made from any Checking Account, Savings Account, Money Market Account, or CD. However, only Checking Accounts offer an unlimited amount of withdrawals, transfers, and debits without penalty. You can still earn interest on certain Checking Accounts (found through the links above) while having the affordability to make a withdrawal or transfer out any time you want. Savings and Money Market Accounts are governed by Regulation D, whereas most CDs will not allow withdrawals without sacrificing interest that you're earned. If you're looking for the best type of account for your needs (or for your assignment) you can answer the questions found here: http://bit.ly/1vW1xnU for the best recommended Checking Account. And here: http://bit.ly/1gAWlhY for our recommended Savings Account.
Hope this answers all your questions Isabelle, and please reach out to us if you have any more. Have a great day!
Katherine G, Mount Laurel
November 16, 2014 05:08:15 PM