Money Market Question

Question: I have a question about money market accounts. I know that money market accounts are limited to six transactions per month, three of which can be in check form. If a money market account holder physically comes into the bank and requests a transfer from his money market to his checking account at the bank, does that type of transaction fall into the "six per month" limitation or is it unlimited?

Answer: Under Regulation D, any number of ATM transfers may be made by the customer from one of his accounts to another. However, if the transfer is made by telephone, by e-mail or electronically (e.g. by PC) to a third party, (except a loan account at the institution), that transfer counts as one of the six transfers permitted monthly. Of those six permissible transfers, three may be by check. Don't forget the pre-authorized transfers, such as electric company or insurance. They also count. Basically, (with the exception of writing and mailing the request for transfer) if the information for the transfer has to leave the customer in any way while he is at home-it counts. If the customer puts the effort into leaving the house and goes to the financial institution and physically asks for the transfer to be made, or goes to the ATM and does it himself, or goes to the mail box and mails the request to the financial institution-it doesn't count as one of the six.

Copyright © 2004 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 13, No. 10, 1/04