Bank accounts can be a great place to stash your cash: They keep your deposits secure while typically earning interest. When you need to access that money for bills, everyday purchases, or big expenses, you’ll have a variety of ways to get cash, including withdrawing funds from an ATM, visiting a bank or credit union branch, or using mobile methods.
Below, you’ll learn how to withdraw money from a checking account and a savings account, plus tips for tracking transactions and avoiding overdrafts.
Checking vs. Savings Accounts
There are two main types of bank accounts you’ll probably have as the hub of your daily financial life: a checking account and a savings account. (You might have other types of deposit accounts, including money market accounts and certificates of deposit as well.)
• Checking accounts are designed for spending, meaning you’ll regularly take money out to cover expenses. You might write a paper check, swipe a debit card (or enter in the card number online), add the account to a digital wallet or peer-to-peer payment app, or direct debit from the account online to pay bills. You can also easily withdraw cash from a checking account to make cash payments.
• Savings accounts are designed for — you guessed it — saving. Ideally, you’ll leave the money untouched most of the time. But once you’re ready to use some or all of the cash you’ve saved to make a big purchase, you’re still able to withdraw that money as needed.
Previously, the Federal Reserve limited savings account withdrawals to six a month as part of Regulation D, but in April 2020, it removed this requirement. Worth noting: Many banks and credit unions still adhere to the six withdrawals per month, but they’re not federally mandated to do so.
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Common Withdrawal Methods
There are three common ways to withdraw money from a checking or savings account, though each bank and credit union may offer its own policies and options.
Withdraw Via ATM
Automated teller machines (ATMs) offer an easy way for you to access your cash from your checking account — and sometimes even your savings account. ATMs are often located at physical bank and credit union branch locations, but they’re also commonly found inside stores, gas stations, and other businesses.
You’ll simply slide in your debit card (or ATM card) and punch in your PIN. You’ll then be able to access a few different account features, including withdrawing cash. A few points to note:
• Many banks and credit unions have their own branded ATMs, but there are also ATM networks to which your financial institution may belong. Typically, as long as you find an ATM within your bank’s network, transactions are free.
Otherwise, your bank may charge you an ATM fee. (The ATM operator may also charge its own fee for using the machine.) One recent study found that the average out-of-network fee was $4.73 per transaction.
• ATMs may have withdrawal limits per transaction, and your bank or credit union may also limit the amount you can withdraw from an ATM per day. One reason why these caps exist: They can protect you against fraud in case someone gets access to your debit card and knows your PIN. Typically, the daily limit for ATM withdrawals can range from $300 to $5,000 depending on your financial institution and the type of account you have.
Visit a Bank In-Person
If you bank at a traditional financial institution, you might withdraw money from your checking account or savings account in another way. You could visit the bank or credit union in person and get money from the teller. There are a few ways you can do this:
• Write a check to cash: If you have a checkbook, make a check out to “Cash” for the amount you’d like to withdraw. Present this to the teller, who will take the money from your account and give it to you. Don’t write the check until you’re at the bank — if it falls in someone else’s hands, they’ll be able to cash the check as well.
• Fill out a withdrawal slip: Banks and credit unions usually have withdrawal slips that you can fill out. You’ll need to fill out your bank account number to use this method.
• Present your ID: Maybe the easiest way to withdraw money at a bank is to simply visit the teller, present your ID and/or debit card, and tell them you’d like to withdraw money from your account.
Keep in mind that a bank or credit union may have a limit on how much cash you can withdraw at one time or in one day. For instance, you may not be able to walk into a branch and make a five-figure withdrawal without first clearing it with your bank. If you plan on making a very large cash withdrawal, it’s wise to contact your bank first about their policies.
Online or Mobile Transfers
The world of online banking has revolutionized how we access our money. In fact, there are many banks and credit unions that are online-only, meaning they don’t have physical locations. The benefits of online banking can include higher interest rates and lower fees, but it does mean you’ll have to get creative with how you access your cash.
Online banks and credit unions typically let you withdraw your money at ATMs and even retail locations, in some instances, but you can also use some other methods to access your cash. Some of these methods may also be used by those who have accounts at traditional financial institutions, if it suits them:
• Transfer funds: You can do an online transfer from your savings account to your checking account via the bank’s mobile app, then use your debit card to access your money at a point of sale or ATM. Alternatively, you can transfer your money to another bank account you have that offers brick-and-mortar locations.
• Use a peer-to-peer payment app: If you need cash to pay a friend, family member, or small business, you might be able to use a peer-to-peer payment app, such as Venmo, PayPal, or Cash App.
• Pay with a digital wallet: You can also add your online banking payment methods to a digital wallet. Many merchants now let you pay from such wallets, meaning you can complete transactions with the tap of a phone.
Recommended: The Difference Between Deposits and Withdrawals
Keep Track of Transactions
When withdrawing money from your bank account, it’s important that you keep track of your transactions. Luckily, banks and credit unions now typically offer digital options where you can monitor your transactions in real time. Either log in on a desktop or mobile device, and you can see your new account balance after withdrawing money.
Many mobile banking apps offer transaction alerts. You can get a text, email, and/or push notification any time you make a transaction from your account. You may also be able to receive low-balance alerts so you know when you need to add more funds to your account.
You can also use the old-school method of balancing your bank account. Every time you withdraw cash or spend with a debit card, paper check, peer-to-peer payment app, or digital wallet, log the transaction in your transaction register. Similarly, when you deposit cash or the account earns interest, you’ll need to reflect that in the register.
Recommended: What Is Cardless ATM Withdrawal?
Overdraft Protection Considerations
Tracking transactions — either with a digital app or old-fashioned register — is important, as it can help you avoid overdrafts or risking a negative balance. Overdrafting is when you spend more money than you have in your account.
Many banks charge fees when you overdraft; some may decline the transaction (say, they won’t pay a check you wrote) and still charge a fee. These can be pricey: Fees can be as high as $35 or even more for an overdraft.
Some banks offer what’s known as overdraft protection. This means they will cover overdrafts up to a certain amount. There may, however, be fees involved for this banking feature. It can be a good idea to find a bank without overdraft fees, if possible. There will likely be a limit to your coverage, such as no fees up to a $50 overdraft.
That said, it’s smart to avoid these overdraft scenarios as much as possible. In other words, stay on top of your bank account balance and make sure there’s always enough money for your automatic bill payments and everyday spending.
The Takeaway
Checking accounts and savings accounts are great resources for storing your money until you need it. And when you do need it, you have multiple ways to withdraw funds, including at ATMs and points of sale, in person at banks and credit unions, and through transfers online and payment apps.
Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.
FAQ
Is there a limit on how much you can withdraw from a bank?
Technically, there is no limit to how much you can withdraw from a bank account, as it’s your money to do what you please with. Nevertheless, banks and credit unions typically limit the amount of money you can withdraw from an ATM in a single transaction or day. They may also cap how much cash you can withdraw by seeing a teller. You may also need to maintain a minimum balance in your bank account to keep it open; this should be spelled out in the bank’s fine print.
How long does a withdrawal take?
Withdrawals from checking and savings accounts can be almost instantaneous at ATMs and physical bank and credit union branches. Moving money from one account to another within a mobile app can also sometimes be almost instantaneous, but if you’re transferring money from one bank to another, it may take more time to process.
What if I don’t have enough in my account?
If you don’t have enough money in your bank account when you attempt to withdraw it, your bank may decline the withdrawal and charge you a fee. Conversely, you may be able to withdraw the funds if you have overdraft protection — but your bank could charge you a fee for this service as well.
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SoFi members with direct deposit activity can earn 4.20% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. SoFi members with direct deposit are eligible for other SoFi Plus benefits.
As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.
SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.20% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.
SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.
Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.
Interest rates are variable and subject to change at any time. These rates are current as of 10/31/2024. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.
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