ACH transfer limits are likely not much of a concern for the average banking consumer, however individuals or families moving around tens to hundreds of thousands of dollars daily may need to find a new bank.
What is an ACH transfer?
ACH stands for America’s Clearing House. This is the network that facilitates the moving of money electronically. This can take a variety of forms, the most common being a direct deposit. If you conduct your banking through an online bank with no physical branches, then these ACH transfers are also responsible for your everyday deposits AND withdrawals.
Commonly used forms of ACH transfers are insurance premium payments, mortgage payments, car payments, and IRA and/or automatic savings deposits. In general, anyone who has set up an automatic payment(s) electronically is using the ACH network to move their funds.
ACH Transfer Limits:
The transfer limit is set by the originator of the transfer. Transfers are originated either by “pulling” or “pushing” funds. Think “push” deposit and “pull” withdrawal.
In general, banks and even credit unions are relatively discrete about ACH transfer limitations. And very rarely is everything detailed on the bank’s website. Due to this discretion it was a little hard for us to come up with an average daily (and monthly) ACH transfer limit by banks and credit unions here in the US, however, we were able to track down a small sample size and have listed our findings below.
- Bank of America’s ACH Transfer Limits: $3,000 daily and just $6,000 monthly for ACH transfer pulls. You may initiate “Safe Pass” to be eligible for unlimited ACH transfers.
- Perkstreet Financial ACH Transfer Limits: Starts at just $1,500 per month. We’ve had readers in our comments and review section mention that this amount can get lifted fairly easily upon request.
- Incredible Bank ACH Transfer Limits: $10,000 daily outbound maximum and $50,000 daily inbound maximum.
- UFB Direct ACH Transfer Limits: Just $2,000 per month. If you conduct your regular banking with UFB and have had this amount lifted, please let us know.
Banks with no limit on ACH Transfers:
Looking to move massive amounts of money around per day/month? Try the following banks as they have zero ACH transfer limits: Chase Bank, American Express, Ally Bank, Barclays, and Citigroup.
Why Cap ACH Transfers?
There are two primary reasons for capping electronic money transfers. The first and perhaps most obvious is fraud. When sifting through the terms and conditions pages of many of the banks’ (mentioned above) ACH transfer agreements we found that fraud was a fairly heavy concern. The second reason was provided to us by BankVibe.com reader Jenn, a former employee at a very large credit union on the east coast, and that is tax implications. When people are sending and receiving vast sums of money electronically, a number of tax concerns arise which may implicate the banks originating the requests.