Automatic Transfers: Evolution of the Service and Impact on Money
Commercial banks began offering automatic
transfers from consumer savings to checking
accounts November 1. With transfers made
automatically through prior arrangements
with their banks, consumers can keep more
of their bank balances in interest-bearing
savings accounts. Automatic transfers also are
intended to reduce the volume of checks
returned for insufficient funds—a costly inconvenience
for everybody concerned. They
are also expected to make it easier for consumers
to meet the minimum balance requirements
of their checking agreements.
