I know that NavyFed will deny any and all transfers (push or pull) out of their savings accounts, but I have a checking account with them. When adding an external account, it says "Checking Accounts only" even though I have previously added other savings accounts, though I haven't pushed any transfers to an external savings account from their interface. The savings accounts have seemed to added just fine to my external accounts list. Will they deny the transfer request by somehow realizing they are pushing out to a Savings account, or since it's coming from their checking should it go through okay?
Answers
I have not tried setting up any links to originate from Navy Fed. I have set up to initiate from external to Navy Fed, but I have to do that to the checking, not the savings -- at least I presumed so when I set it up since the setup involves the external institution both depositing and then pulling that back.
However, I note, you are right, Navy Fed has the rule that you cannot withdraw from any savings account via the ACH. But you are supposed to be able to deposit to its savings accounts via the ACH -- they state that in writing, and I had the CSR even confirm that for me. I don't see why they would not let you set up a limited ACH link to provide for pulling money in only. I don't know, are they perhaps using a third party software to do the ACH -- if so, that software might not provide for a limited ACH for incoming only, and so you can't set up ACH for savings accounts at all. I don't get the impression that Navy Fed is sharp enough to call on the third party software maker to add the ability for limited ACH use for incoming only -- it could be done at software level, simply not providing the ability to set up a withdrawals form savings accounts, regardless of what rules the ACH itself might have.
So ridiculous. I challenged them about why no ACH withdrawals from savings, and the CSR (they are never the definitive word) said that is because savings accounts are limited transaction accounts, you are not allowed to withdraw from the ACH -- I think they said it was Reg. D, which I would have and think I remember biting their heads off, telling them they are completely wrong, Reg. D has no such block to ACH withdrawals, simply limits the number of them.
What is scary is that I think the Navy Fed executives actually don't understand the ACH rules. I came across this far too often at a lot of these institutions, the people running them don't even know their own business.
You can use savings accounts to deposit or withdrawal -- but yes, you still are subject to the maximum 6 withdrawals. I do this all the time from my other institution, I pay my bills via ACH from my savings account, where the money will continue to draw interest until it is finally actually pulled, rather than sit in a no-interest checking account. I even pay my federal and state income taxes via the ACH from my savings account or get tax refunds that way -- the feds have no issue with making ACH transactions to savings accounts. (I have multiple savings accounts set up with that institution, and spread the withdrawals out among them to stay under the 6 per month limit.)
Be the Ginny Pig, and let us know whats what.
I can't find anything in my disclosures about that, other than a line under the ACH disclosures saying some accounts might have limitations, see the materials on that account. But the only materials I have on the savings or checking accounts are the Important Disclosures pamphlet, and int he part on savings or checking, it does not address ACH limitations -- pretty good disclosures, huh? BOTTOM LINE: If you have a place that is so ridiculous about making tons of extra details, and ridiculous ones at that, and you can't even figure out what it means, and they don't give you all the disclosures -- well, you should not use that place for very much. I opened my Navy Fed account simply to hold it for when I need a CD, because they often have a good promo going. I would simply park my CD there, and when I close it, close it to my checking, and write a check -- done. I won't try to use them for anything else that ought to be simple but is so bogged down in details and ridiculousness that is it like walking through a minefield.
Latest was on 01/18/18 and have done several in the past couple of years, generally when CDs matured.
BE CAREFUL of ACH. I have become complacent with them and very depended upon them to move funds around. BUT, some places, especially BANKS, want to charge for any ACH activity that originates with them. They may be OK without a fee as the target of an ACH, but not via you originating one with them. ( my major bank is Bank of America, which is getting more and more ridiculous with fees and gotchas ).
