Can You Take Money Out of a Savings Account?

A savings account serves as a secure place to store funds, primarily for saving money and earning interest over time. While designed for long-term growth rather than daily spending, it is generally possible to withdraw money from a savings account. However, there are specific methods and rules that govern these withdrawals, which are important to understand.

How to Access Your Savings

Accessing funds from a savings account can be accomplished through several common methods.

One prevalent way is by using an Automated Teller Machine (ATM) if your savings account is linked to a debit or ATM card. To do this, you insert your card, enter your Personal Identification Number (PIN), select your savings account, and specify the withdrawal amount.

Another method involves online transfers, moving money from your savings account to a linked checking account or an external account at another institution. This process requires logging into your bank’s online portal or mobile app, navigating to the transfer section, and inputting the necessary account details and transfer amount. Transfers between your own accounts at the same bank often process quickly.

For those who prefer in-person transactions, visiting a bank branch allows you to withdraw money directly with teller assistance. You will need to fill out a withdrawal slip with your account number and the desired amount, and present a government-issued photo identification. Some savings accounts also allow direct use of a linked debit card for purchases, though this is less common than linking it to a checking account. If your debit card is linked to both, you might need to transfer funds to your checking account first for purchases.

Rules Governing Withdrawals

Savings accounts are subject to certain rules regarding withdrawals, which are set by financial institutions.

Financial institutions limited transfers or withdrawals from savings accounts to no more than six per statement cycle. These convenient transactions often included online transfers, phone transfers, and certain debit card transactions.

While the federal limit was suspended in April 2020, many banks and credit unions continue to impose their own restrictions. It is common for financial institutions to still maintain a limit, often six, on specific types of outgoing transactions from savings accounts. Transactions like in-person withdrawals at a branch or ATM withdrawals may not always count towards these limits, but this can vary by bank.

Exceeding these bank-specific limits can lead to consequences. Financial institutions may charge a fee for each transaction over the limit, convert the savings account to a checking account, or close the account if limits are repeatedly exceeded. Banks may also set daily or per-transaction withdrawal limits, particularly for ATM withdrawals. Understanding your bank’s specific policies is important to avoid unexpected fees or account changes.

Costs Associated with Withdrawals

Withdrawing money from a savings account can incur various fees depending on the type of transaction and your bank’s policies.

One common charge is an excessive withdrawal fee, applied when you exceed the monthly transaction limit set by your financial institution. These fees typically range from $3 to $5 per transaction.

ATM fees are another cost, especially when using an ATM outside of your bank’s network. You might face a fee from the ATM owner, and your own bank may also charge a fee for using an out-of-network machine.

Specialized withdrawals like wire transfers can incur fees. If you initiate a wire transfer directly from a savings account, domestic outgoing fees range from $15 to $30, while international transfers cost between $30 and $50.