What is an excessive transactions fee?

An excessive transaction fee is a charge that savings account holders incur when they exceed the allowable number of certain types of withdrawals or transfers in a month, as per federal regulations. Specifically, under Regulation D, most savings accounts limit withdrawals or electronic transfers to six per month. If account holders surpass this limit, they may be subject to a fee, which can vary by bank. This fee is intended to encourage the use of savings accounts for saving rather than frequent transactions.