19 January 2002

Federal Reserve Board Regulation D

I just opened my (snail-mail hardcopy) bank statement this morning, and was shocked to find this little item:

Beginning April 1, 2002, withdrawals from savings accounts are limited by the Federal Reserve Board Regulation D to a total of 6 per month. These include preauthorized, automatic, and online transfers, point-of-sale purchases, payments to others persons, and transfers by telephone. There will be a $10 fee for each limisted withdrawal, over 6 per month, from your savings account.

First, when was this rule established? I don't recall seeing ANYTHING about it, yet I presume Wells Fargo is not mistaken. (This isn't somehow related to recent terrorism legislation, is it?)

Second, does the $10 fee go Wells Fargo or is it a penalty collected by the government? And why? More specifically, if it is a penalty, why isn't it more substantial? And is the government notified when I exceed my six withdrawals?! That's scary!

Third -- and most important -- why in the hell am I penalized for using my money as I see fit?

Unbelievable. This is what we libertarian-conservative types mean when we talk about out-of-control government. There is NO reason for this commerce-hampering rule, yet there it is.

[Posted @ 12:53 PM CST]