What’s An Excessive Withdrawal Fee?
We’re putting a spotlight on excessive withdrawal fees. Learn what they are and how to avoid them.
3 min read
When taking the steps to manage your personal finances, the last thing you want is to have to put some of that money toward bank fees. At N26, you can feel confident that your hard-earned money isn’t going toward hidden fees, like excessive withdrawal fees. In addition we want to give you the right tools and resources to help you manage your money better, and that includes helping you avoid unpleasant bank fees.
Read on to learn more about excessive withdrawal fees: What they are, when they happen, and how to avoid them.
What’s an excessive withdrawal fee?
Like many hidden fees, excessive withdrawal fees are known by different names: “excess activity fees,” “savings withdrawal fees” or “daily limits.” These withdrawal fees are a reality across many bank accounts and institutions to limit the amount of money you’re spending on a normal day — both in terms of how much you’re spending for a certain transaction and number of transactions.
At N26, we don’t believe that you should be able to manage your money in a way that fits your life, and that includes not charging excessive withdrawal fees.
Why are there limits on account withdrawals?
Excessive withdrawal fees were a consequence of Regulation D, a step taken by the Securities and Exchange Commission (SEC) following The Great Depression to make sure all banks and accounts had a more exact picture of immediate cash on hand to the amount that could be withdrawn. And as part of that, each kind of bank account you have requires you to agree to a frequency you can expect to withdraw cash.
Nearly all companies have measures in place to ensure they adequately apply fees when an individual customer exceeds the percentage of cash withdrawals entitled for that specific type of account.
How much are excessive withdrawal fees?
According to CNBC, excessive transaction fees for savings accounts can cost between $3 to $25 per transaction. Some banks use these fees as deterrents for having customers withdraw past a given limit.
Does N26 charge excessive withdrawal fees?
Since N26 is a checking account, the excessive withdrawal prevention translates to a daily spend cap. Your N26 account will simply cap your ability to spend when the limit has been met.
How much can I withdraw from my N26 account?
As an N26 customer, you have a daily limit of $5,000 for point of sale spending (including cashback) and $1,500 in cash withdrawals. Over the course of a month, you won’t be able to withdraw or spend more than $30,000. You can read more about transaction limitations here.
While excessive withdrawal limits are a part of banking, understanding why or when you may need to pay them can be a tool to help you keep money in your pocket long-term. Keep track of your daily spending with the N26 app, and rest assured that there are no surprise charges.
N26 does not manage external links, and is not responsible for the content, links, products or services of these websites. Further, N26's privacy and security policies do not apply to external linked websites. Please consult the disclosures of any external linked websites for further information.
The N26 account is offered by Axos Bank®, Member FDIC. N26 Inc. is a service provider of Axos Bank. All deposit accounts of the same ownership and/or vesting held at Axos Bank are combined and insured under the same FDIC Certificate 35546. All deposit accounts through Axos Bank brands are not separately insured by the FDIC from other deposit accounts held with the same ownership and/or vesting at Axos Bank. The N26 Visa® Debit Card is issued by Axos Bank pursuant to a license by Visa U.S.A. Inc. The N26 Visa Debit Card may be used everywhere Visa debit cards are accepted.
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