A couple of readers have informed me of a disappointing change at Reader Saver, the internet savings account from Southern Community Bank & Trust. They have added a 4-day delay to their ACH bank-to-bank transfers. Here's how one reader described finding out about this change:
Monday this week, I went to schedule a Bank2Bank transfer from my Ready-Saver account. Their system would not accept Monday's date (6/21) as a valid date. Assuming there was something wrong with their site, I called and was informed that "for security reasons" all B2B transfers will now have a 4 day waiting period before the transfer is even scheduled! This is in addition to the normal 3 day period that was previously there.
Ready Saver actually placed an extra 6-day delay on his transfers, but he was able to get this reduced to 4 days after he called.
Using Ready Saver's online chat service, I was also able to confirm this new 4-day transfer delay. I asked if this delay would apply if you initiate transfers from your other bank. According to the CSR, this delay would not apply. So that's one way to get around this very long delay. Also, using another bank's ACH service will allow you to get around Ready Saver's limitation on the dollar amount that can be transfered. According to the CSR, there's a $100,000 daily transfer limit.
It is common for banks to have several restrictions on their own ACH transfer service but be lax on ACH transfers originating from another bank. The reason is the bank that originates the ACH transfer holds the liability. I have more info about this in my post on restrictive ACH policies. For more general info, please refer to our article on How ACH Transfers Work.
The last question I asked the CSR was if she had any idea if the 1.50% APY was going to hold. When I asked about the rate in April, the CSR was able to warn me about a pending rate cut. But this time, the CSR said she wasn't aware of any changes. Hopefully, that means the 1.50% APY will last for a while, but there's no guarantee.
For more info on this Ready Saver account and Southern Community Bank & Trust, please refer to the following posts and resources:
- My first review of Ready Saver in February 2010
- Updated review of Ready Saver in April 2010
- Financial & FDIC overview of Southern Community Bank & Trust
Hat tip to the readers who alerted to this new transfer delay.