MMDA Transfers for Business Accounts Limit Raised?

Bills to enable banks to provide more transactions on MMDAs and interest on checking for business are again being introduced. This is a good time to lobby for them if you want these products. Bank trade associations have taken conflicting positions on these bills. ABA, for example, has opposed them because they believe the cost of the product is not in the bank's interest. Balance this against the number of accounts you may lose if you can't offer the product and decide where you stand. Then contract your Representative to Congress and your Senators and let them know what you want and why.

[Editors Note:As of 7/2/09, the separate limit of three per month for checks, POS debit card transactions, etc., has been eliminated, and those transactions are now only subject to the 6/month limit that applies to other restricted transfers and withdrawals.]

First published on BankersOnline.com 2/5/01