Automatic Transfer Service - ATS

Automatic Transfer Service - ATS
A banking service offered to customers that has both a general and specific meaning. On a general level, it can mean any automatic transfer of funds between customer accounts. For example, a regular transfer from a checking account to pay off a bank loan, or a monthly transfer from a checking account to a savings account.

More specifically, it describes the overdraft protection provided when there is an automatic transfer of funds from a customer's savings account to his or her checking account when there are insufficient funds to cover unpaid checks or maintain a minumum balance. Ordinarily, the bank will transfer the exact amount of funds required to cover unpaid checks. The customer avoids any overdraft fees and all the hassle associated with returned checks.

ATS accounts were first introduced by savings and loans and mutual savings banks in the 1970s to compete with traditional commercial banks. According to the Federal Reserve, in defining the money stock ATS accounts are included in M1, which also includes travelers' checks, demand deposits and other checkable deposits (i.e., negotiable order of withdrawal (NOW) accounts and credit union share drafts).

Given the low rates of interest paid on checking accounts, these arrangements are the norm rather the exception, particularly for checking accounts at brokerage firms. Automatic transfer accounts are available to individuals and sole proprietors; organizations, units of government and other entities are not eligible for these accounts.


Investment dictionary. . 2012.

Игры ⚽ Нужно сделать НИР?

Look at other dictionaries:

  • automatic transfer service account — automatic transfer service ( ATS) account A depositor s saving account from which funds may be transferred automatically to the same depositor s checking account to cover a check written or to maintain a minimum balance. Bloomberg Financial… …   Financial and business terms

  • automatic transfer service — /ˌɔ:təmætɪk trænsfə ˌsɜ:vɪs/ noun US a service by which money can be transferred automatically from a customer’s savings account to cover an overdraft in a current account. Abbreviation ATS …   Dictionary of banking and finance

  • ATS account — automatic transfer service ( ATS) account A depositor s saving account from which funds may be transferred automatically to the same depositor s checking account to cover a check written or to maintain a minimum balance. Bloomberg Financial… …   Financial and business terms

  • ATS — can mean: Societies *American Tarantula Society *Adventist Theological Society *American Temperance Society, an early American civic organization promoting temperance *American Thoracic Society, a society for lung physicians, health related… …   Wikipedia

  • Transfer switch — Transfer switches allow switching from a primary power source to a secondary or tertiary power source and are employed in some electrical power distribution systems. Most often transfer switches can be seen where emergency power generators are… …   Wikipedia

  • ATS — abbreviation automatic transfer service …   Dictionary of banking and finance

  • ATS — Die Abkürzung ATS steht für: Advanced Tobruk System, ein Konfliktsimulationsspiel der US amerikanischen Firma Critical Hit Air Traffic Services, Flugverkehrsmanagement oder Flugverkehrsdienste Alternatives Handelssystem (Alternative Trading… …   Deutsch Wikipedia

  • ПЛАТЕЖНЫЙ МЕХАНИЗМ — PAYMENTS MECHANISMСистемы, предназначенные для осуществления платежей и перевода денег в масштабе всей страны. Основную роль в общенациональной системе платежей играет ФРС посредством распространения денег и разменной монеты, обработки чеков,… …   Энциклопедия банковского дела и финансов

  • БАНК — BANKЛюбая организация, выполняющая любую или все из различных функций банковского дела, а именно получение, инкассирование, перевод, оплату, кредитование, инвестирование, операции, обмен и обслуживание (безопасное хранение, доверительное… …   Энциклопедия банковского дела и финансов

  • M1 — Measure of the U.S. money stock that consists of currency held by the public, travelers checks, demand deposits and other checkable deposits including NOW ( negotiable order of withdrawal) and ATS (automatic transfer service ) account balances… …   Financial and business terms

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”