Costs
Withdrawals from a savings account are occasionally costly, and they are more time-consuming than withdrawals from a demand (current) account. However, most saving accounts do not limit withdrawals, unlike certificates of deposit. In the United States, violations of Regulation D often involve a service charge, or even a downgrade of the account to a checking account. With online accounts, the main penalty is the time required for the Automated Clearing House to transfer funds from the online account to a "brick and mortar" bank where it can be easily accessed. During the period between when funds are withdrawn from the online bank and transferred to the local bank, no interest is earned.
Read more about this topic: Savings Account
Famous quotes containing the word costs:
“It costs you something to do good!”
—Zora Neale Hurston (1891–1960)
“When over Catholics the ocean rolls,
They must wait several weeks before a mass
Takes off one peck of purgatorial coals,
Because, till people know what’s come to pass,
They won’t lay out their money on the dead—
It costs three francs for every mass that’s said.”
—George Gordon Noel Byron (1788–1824)
“The real price of everything, what everything really costs to the man who wants to acquire it, is the toil and trouble of acquiring it.”
—Adam Smith (1723–1790)