For the second time this year, I received a nasty letter from ING Direct. I haven’t been diligent enough with watching my withdrawals. FDIC, the government organization that ensures that I can’t lose money my leaving cash in a bank account up to $100,000, also limits savings accounts to six withdrawals per month.
For ING Direct, that includes transfers between “sub-accounts” within the same user ID. March is the second month since February I didn’t plan my withdrawals correctly, as I assumed transfers from one ING Direct sub-account to another did not count towards the six-withdrawal limit. Boy, was I wrong.
Banking Deal: Earn 1.20% APY on an FDIC-insured savings account at Barclays.
Here’s the full text of the second warning letter, emphasis mine. You can be sure this won’t happen again.
Based on recent activity in your Orange Savings Account™, we want to remind you that you cannot make more than six withdrawals from your account each month. This is a federal regulation that all banks are required to follow for savings accounts like this one, so if this type of activity occurs more than three times in any 12-month period, we will have to close your account.
Since this is not the first time that you have made too many monthly withdrawals, we will be required to close your account if you do this again — and we don’t want that to happen!
So here’s what you can do to prevent your account from being closed:
* Take a look at your statements or go to INGdirect.com and review your account activity.
* Keep track of how many times you transfer money out of your Orange Savings Account, including transfers to other ING DIRECT Accounts, and make sure you’re not making more than six withdrawals each month.
* Make one or two larger transactions rather than moving money numerous times. This will reduce the number of withdrawals you make each month.
Give us a call at 1-888-464-0727 if you have any questions.
After receiving the first letter last month, I canceled some of the automatic transfers from one ING Direct account to the others, but I knew it was already too late for March. I shouldn’t have the same problem in April.
Updated September 24, 2015 and originally published April 10, 2007.