In perusing my banking site, I took the time to read the terms and conditions of my savings account. Its seems that Federal regulations have placed a 6 limit per month transfer clause on savings accounts. Here is my dilema.

1:My job requires paychecks be funded thru direct deposit. My checks are sent directly to my savings account. ( My bank insist that the savings account IS the primary account). Each week I then have a certain amount *transferred* over to my checking account so I can do online Bill payments. Given the logic of the federal regulations , it would appear that I am then down to two transfer per month in which I can utilize account transfer. So Lo and behold, My car loan and my personal loans are taken directly from my savings account ( The bank constitutes this as a transfer from savings directly to the loan accounts). Thus leaving me with zero options to do transfers. Does this sound correct? I dont like the idea that I cant access my savings account for transfer purposes, without being penalized(fees).
2: I read the one website Emigrant Direct that does a wonderful 3% APR on savings but its only thru a persons checking account. Emigrant uses the ACH transactions, which my bank charges $1.95 per transaction for using. As much as I would like to change my savings over to a higher yield ,I seem to be in a perpetual loop on my current account and how its set up. Any suggestions on how I can rectify this matter to best profit?

LogicalOne,

Speak with the finance folks at your company. You should be able to Direct Deposit into your checking account with no problems. With you Direct Deposit into checking there will be no transfer issues. You can setup and automatic transfer from Checking to Savings to cover those bills that are already being deducted or change the payment from Savings to Checking.

Most financial institutions are flexible enough to do this, it just takes time and effort on your part to get folks to do their jobs (I have found that a large part of the working world do not want to "work").

Thank you for your suggestions.

I direct deposit 80% into checking and 20% into savings automatically. Perhaps your company will allow you to split out your direct deposit as such.

Have your money deposited directly into your checking and automagically withdrawn from your checking. If your bank cannot do this, find a bank that will.

I switched banks. I had that account with the bank for over 30 years, but they charged me like 2 dollars a month for maintance since i was under 1000 dollars, and 50 cents a check over 5, atm fees, etc. I finally realized that I was paying like 50 bucks a year just for a checking account. I paid it for one year after I realized it, because i thought i was going to have to swtich banks anyway. But about the FIRST thing I did when i did finally switch jobs was switch banks. I am once again contemplating switching banks. Because i save almost 30 bucks a year by doing so.

Emigrant Bank offers a great savings rate through the use of a money market fund. By law you are limited to only six transactions a month. A better bet would be an interest bearing checking account with direct deposit or an ING Direct savings account. ING Direct has no monthly minimum balances, pays a variable rate (currently 2.6%) and unlimited activity throughout the month.

BankRate.com is a great resource for researching financial products.

HTH

Michael

ING has the "6" rule too (it's the law!), but to get around this I have several accounts with them.

I get a lump sum in Account 1 and then I move money (that needs to go to Accounts 2, 3, 4, and 5) to Account 2. Then I take the money that needs to go in 3, 4, and 5 and dump it in 3. Then I take the money that needs to go in 4 & 5 and dump it in 4. Then I dump the money needed in 5 into 5. This way I sill have 5 withdrawls left for each account since I've only withdrawn once from each one.

What? Why?

I've setup all my due dates to be on the 8th of the month. (Okay mortage is due on the 1st, but not late until the 15th. And one pain in the ass gas company won't change their due date) About the first of the month I transfer out of savings anything I may need to paybills and schedule payments online. My bank can pay most bills in one business day (those bills that take electronic payments), there are still a few bills stuck in the last centuary that require a check and thus four business days.

I also route as many bills as possible thru rewards credit cards for an extra 1% savings

Those who echoed that ING has the SIX rule are correct. I made a mistake.

Oops!!!!

Michael