Provident NJ Direct limits withdrawals to $2k per day
We just received an interesting email from a Provident NJ Direct customer who took advantage of their Power Savings Account we reported on in April.
As a quick recap, the Power Savings Account offered by Provident NJ Direct currently provides a promotional 90 day APY of 2.0%, which is then followed up by either a 1.0% interest rate or 1.50% interest rate (depending on your minimum balance). For balances above $10k you will earn 1.50% APY and for balances between $50 – $9,999 you will earn the lower 1.0% APY.
This is an online savings account which features no fees or service charges as well as an ATM card. This account soley operates online and is available throughout the country.
The email we received highlights the fact that apparently Provident NJ Direct only allows withdrawals of $2,000 per business day. Therefor if you were to invest, say, $100k into this account, it would take you roughly 10 weeks to receive your money. I can see why this particular customer is so frustrated as he had a rather large sum wrapped up in this account. Here is the email they sent him when he requested to withdrawal his funds:
Dear Valued Customer, The world of Internet banking continues to evolve at an unprecedented pace, to which banks must continuously look at industry best practices to protect both customer and bank assets. This notice is being sent to inform you of two changes to The Provident Bank’s Internet Banking service, which will become effective on September 29, 2009. Transaction Limitations: The Provident Bank has implemented a daily limit of $2,000 on external transfers from each of your Provident accounts, as conducted via Provident Connect. This daily limit is applicable to external transfers (transfers from your Provident account to an account at another financial institution) conducted Monday through Friday. Any transfers requested on Saturday or Sunday will be added to transfer requests made on the following Monday. Note: This transaction limitation does not affect transfers to or between your Provident accounts. In order to close accounts with balances exceeding $2,000, you must send a secure message through Provident Connect providing the Bank authorization to close your account. Within one business day after we receive your authorization, a check for the balance of your account will be mailed to the address we have on file. Funds Availability: Electronic funds transfers processed via online banking to your Provident accounts from another financial institution will be available for withdrawal or transfer outside of The Provident Bank on the third business day following the day of deposit. Please understand that the above limitations are being implemented to protect your accounts from unauthorized activity. As Internet services continue to evolve, The Provident Bank is continuing to work with industry experts to ensure our practices meet both the high standards of performance expected by our customers, as well as the security needed to give you peace of mind. Sincerely, The Provident Bank
After digging a little further, we were not able to find this stipulation within their “terms of service” but realize this became effective only a few days ago (according to the email). Has anyone else come across this issue?
