Answer: 6

Hat tip to Jessica and her PLC group, Diane Mondoro, Steve Penley, Vicky Livesay, and Kayla Bousum for generating this question!

On to the details:

From NerdWallet:

Regulation D, also known as Reg D, is a Federal Reserve Board rule that puts a limit of six transactions per month on certain transfers and withdrawals from your savings or money market account. If you go over the limit, the bank or credit union can charge you a fee, close your account or convert it into a checking account.

Regulation D is the federal government’s way of encouraging people to use savings accounts as they are intended — to save money — and ensures that banks have the proper amount of reserves on hand.

Questions:

• Why do you think that banks want to limit withdrawals from savings accounts?
• What type of account do you think you should use, if you plan to make many monthly transactions? 
• You check your mobile phone and see that your checking account has less than $20 while your savings account has over $500 in it. You need to use your debit card 4-5 times over the next few days. What should you do to minimize taking money out of your savings account for these transactions? 

Here's the ready-to-go slides for this Question of the Day that you can use in your classroom.

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Want to find all the NGPF Checking resources in one place? Check out our Checking Unit page and find a bunch of ideas you can use (in minutes)!

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NGPF has just started a new service: The Daily QuoD (that's Question of the Day in NGPF-speak!). Subscribe to our blog (right hand side of NGPF Blog homepage) and you will receive a new QuoD every weekday during the school ready to use in your classroom. Enjoy!

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.

More posts by Tim