Automatic Transfers: Evolution of the Service and Impact on Money
Last Updated: 11/30/78
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.