Like clockwork, Navy Veteran Joseph Woodworth's VA benefits have been deposited into his savings account every month since he opened it with BB&T 6 years ago.
4 days ago he found out his check deposit was denied because his account had been closed.
"I was like, Oh my God, what does that mean. They just closed my account! Yeah! You could do that? You can close my account cause I accessed my money." said Woodworth.
The bank explained he had made too many transactions in a months time. But that just didn't sound right.
"After thinking about it, I was like, this might be a scam. You know, let me call, let me make sure, let me make sure that I'm actually talking to BB&T," said Woodworth.
Turns out, it's no scam. This is a bank document explains Federal rules for savings accounts. It states:
"You are limited to no more than six (6) transactions, transfers or withdrawals during any monthly statement cycle...If you exceed the transaction limits...your account may be closed or converted to a transaction account."
"I was amazed, I mean I couldn't believe it. I was like, it's my money, can't I just... No, only six times in a month because the Federal government mandates it. And when I asked why they couldn't tell me why," said Woodworth.
So I did some digging and learned the reserve requirement on a savings account is less than a checking account. That basically means the bank can loan out all the money. In return you get a higher interest rate. The limits on transactions are the price you pay.
Now there are exceptions to this rule. You can make unlimited withdrawals if you do so by person, messenger, mail or ATM.
BB&T told us they had sent Woodworth 2 warnings saying his account could be closed after he went over the limit. Woodworth admits, he doesn't always read his statements.
"If you really want to know what's going on with the banking system you have to sit down and read, because if you don't, you're going to find surprises around the corner," he warned.
The good news for Woodworth, the bank re-opened his account. He hopes sharing his story will mean that yours will never be shut down.
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