Hello, I have a high-yield savings account with SchoolsFirst Federal Credit Union, and they have a monthly deposit limit of $2,000. I used to make just under that amount each month, so everything was fine. However, I recently got a raise, and now my direct deposit will exceed the $2,000 limit. Since my direct deposit is already linked to the account, what will happen if my paycheck is deposited after I’ve already reached the monthly limit?
What happens if I deposit more than I'm allowed?
byu/Ok_Lingonberry_640 inpersonalfinance
Posted by Ok_Lingonberry_640
11 Comments
The excess amount goes to your primary account (the one with the “member share” in it).
Your bank will follow their policies, which is likely to reject the deposit.
This is not common, open an account that does not have such a low deposit limit.
They’ll probably just refund you and send you a correspondence about it.
Review the Terms and Conditions of your specific institution.
Attention to the Summer Saver stuff since that’s what your CU calls this account.
* https://www.schoolsfirstfcu.org/globalassets/pdf/disclosures/mk360-fees.pdf
Attention to Page 40 of the PDF (labeled page 38 on the lower left corner)
* *Any deposit amounts that exceed the maximum monthly contribution or annual maximum balance limits will automatically transfer to your Share Savings ID 01 account.*
Call them directly and ask your question- that will be the most reliable and accurate answer.
Are you doing your whole paycheck into HYSA? I’d personally direct the main chunk towards checking.
As another poster as mentioned, once you hit the limit for SFFCU summer saver ($2000 for the month) the remainder will go to your regular member share account (savings).
You can specify the exact amount from each paycheck you want to go into the summer saver as well.
I’d recommend picking a different bank that doesn’t have those limits. Look into Wealthfront and Vio Bank, among others. Always pick FDIC-insured institutions of course.
The answer is always in the terms and conditions you agreed to when you opened the account, but few actually read. In this case, it’s on page 38.
https://www.schoolsfirstfcu.org/globalassets/pdf/disclosures/mk360-fees.pdf
“Any deposit amounts that exceed the maximum monthly contribution or annual maximum balance limits will automatically transfer to your Share
Savings ID 01 account.”
How much more does this HYSA pay compared to a savings account from SoFi, for example, which pays 3.3%?
Rest would probably get funneled to a checking account.
I have schools first.