Author Topic: can I withdraw $ from a savings account using an ACH pull from outside acct  (Read 689 times)

ohsnap

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I have a savings account at a credit union that I don't want to close (longtime account & they hold my mortgage).  But I have $750 that I want to withdraw and they won't let me without paying a wire transfer fee!  I added an external transfer account to my online account, but then couldn't push an ACH out so I called them, and they said that website function is only for ACH in.  I asked if he could process the ACH by phone - nope - could they write me a check - nope -  my only option was to pay for a wire transfer.

It's not convenient for me to get to a branch.

Can I use ACH pull at another bank to get the $ out of the account?  The CU website is silent on this (their website is silent on the whole "once you deposit $ into this account you can't get it out without paying a wire fee" also).  I searched for general limits on savings accounts, and all I could find was the 6-transaction monthly limit set by the feds. 

If I do this, does anyone know if there's a risk that they'll block the transaction?  FWIW, the money I want to pull out was sent to them via ACH!  This is a little frustrating.

JLee

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I can initiate a transfer out of my Ally savings account from another account - I imagine it should work fine as long as your other bank allows you to set it up.

NotJen

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Can I use ACH pull at another bank to get the $ out of the account?  The CU website is silent on this (their website is silent on the whole "once you deposit $ into this account you can't get it out without paying a wire fee" also).  I searched for general limits on savings accounts, and all I could find was the 6-transaction monthly limit set by the feds. 

I think it should work.  There's no harm in trying, if the ACH fails, it's no big deal.

I have a credit union account that doesn't let me set up external transfers, but I have successfully pulled money out via ACH to several different external accounts over the years.

Rosy

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ACH should work fine.
They might drag their feet on both sides - it may well take ten days for the transaction to clear.
Unless this particular credit union doesn't allow ACH withdrawals from savings you should be fine.

I once had a situation where I had to open a checking account - transfer the money from savings to checking and then set up an ACH from another bank, just to avoid being charged $3 each time for access to my own money for crying out loud.

Don't worry about them "blocking' the ACH transfer. Just read the small print in their terms for your account. Should be available online at the bank's website which should answer your question. If not call their CS for clarification again.
If the ACH doesn't clear nothing will happen - you'll be forced to bite the bullet and initiate a wire transfer - probably a $35 fee or so.

Can they cut a cashier's check? That's usually only five bucks or $7.50.





ohsnap

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Thanks for the replies.  I initiated an ACH pull from another bank. Hope it works.  If not - I *can* get to a branch, just not this week - no big deal.  I was just so shocked that he told me I couldn't get the $ without paying.  Doesn't seem very friendly for a credit union.

I did find out through more poking around on their website that I could have requested a cashier's check (the rep on the phone did not tell me that!).  But I couldn't figure out if there was a fee for that, or if I had to pick it up in branch (that was the default option) without going too far into the process of requesting.

Also FYI apparently due to COVID, regulators have suspended the 6-transactions-per-month restriction for savings accounts which is another reason I'm so surprised they are making it so hard for me to get my money.
« Last Edit: November 23, 2020, 09:18:03 PM by ohsnap »

iluvzbeach

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Some financial institutions won’t let you generate an outbound external transfer due to fraud risk because as the ODFI (originating institution) they are taking all the risk. So, as long as the savings account offers a monthly statement, you should be able to initiate the transfer as a “pull” from the other institution. They then are the ODFI and assume all the risk - that you have the right to request the money from your credit union.

jim555

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I've dealt with a few credit unions and outside initiated ACH is the best way to move money.

ohsnap

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Well the credit union refused the ACH pull.  My other bank which had already credited my account, reversed it.  I should count myself lucky that they didn't charge a returned transaction fee.

Since my mortgage payment is due next week, I used the money to make a partial mortgage payment.  Then I made the rest of the payment from my regular checking account.  According to the CU's website, they should count that as a full payment and not as add'l principal payments.  We'll see.