The Limit Does Exist: Legal & Savings Bank Withdrawal Limits

The Limit Does Exist: Legal & Savings Bank Withdrawal Limits

Eric Reed   Sun, May 7, 2023

Just about every bank puts a limit on how much cash you can withdraw each day. In part, this is a security feature to prevent thieves from cleaning out unauthorized accounts. In other part, this helps banks and ATMs to stabilize liquidity. If accessing cash, especially on an unscheduled basis, is important to you, here’s what you need to know about daily withdrawal limits from a personal account at a commercial bank.

If you’re not sure what type of financial institution should keep your money then you may want to consider working with a financial advisor.

What Are Withdrawal Limits?

A daily withdrawal limit is the maximum amount of money you can withdraw from your bank account in a single day. These limits largely exist for two reasons.

The first is to manage cash flow and liquidity. Banks keep a limited amount of cash on hand at any given time, as do ATMs. By setting withdrawal limits, the bank can control how much they have to distribute at any given time.

Just as importantly, if not more so, withdrawal limits are a security feature. By limiting daily withdrawals, banks help protect their customers against unauthorized access. Even if someone gets your debit card and PIN number, there’s a limit to the damage they can do.

There are three main categories of withdrawal limits:

ATM Withdrawals

This is by far the most common use of the term “withdrawal limit.” Your bank’s ATM withdrawal limit is the maximum amount of physical cash you can take out of an ATM in one 24-hour period. For example, many banks have a $500 limit, which means you can’t take out more than $500 in cash during a single 24-hour period.

Typically banks apply the ATM limit cumulatively, across all ATM transactions in a single 24-hour period. This means that it is not a limit on how much you can withdraw at once, but rather a limit on how much you can withdraw from ATMs altogether over the course of a day.

While your bank sets a limit on ATM withdrawals, individual ATM operators can do so as well. This limits how much money you can take out of that operator’s machines over the course of a single day.

For example, say your bank has a $1,000 withdrawal limit and you use an ATM with a $600 limit. This means that you can withdraw up to $600 from that ATM operator’s machines in a single day, but you can withdraw an additional $400 from other ATMs before hitting your bank’s limit.

If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.

Cashier/Teller Withdrawals

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