Blog Getting started How to Link Your Bank Account for ACH Transfers on MyConstant

How to Link Your Bank Account for ACH Transfers on MyConstant

date July 29, 2020 time 6 min read 11454 views

We’ve partnered with Plaid, an ACH processor, to make it easier and cheaper to send money to and from your MyConstant account. 

Wires, although fast, can be expensive for smaller amounts. From today, however, you can link your bank account with Plaid and do ACH transfers in just a few clicks. 

We don’t charge you a penny for this service, but your bank will probably charge a few dollars to do an ACH. Still, it’ll be much cheaper than doing a wire. 

Before linking your bank account, there are a few things to consider. 

First, make sure your bank supports outgoing ACH transfers. Not all do, but you’ll need one if you want to use our ACH transfer service. 

Second, link a checking account and not a savings account. Why? Most savings account limit the number of withdrawals per year. If you hit this limit, your ACH will reverse and you might be charged or have to wait longer for your money. 

You can link up to two bank accounts. For your security, once you deposit from link a bank account, you must withdraw using the same method and to the same account for a period of 60 days.

For example, if you deposit $1,000 via a linked US bank account, you will only be able to withdraw that $1,000 to the same linked US bank account. You can’t withdraw the amount in crypto, to another account, or any other method.

You can lift this restriction early by providing some additional verification information, such as:

  • A brief description of why you are unable or unwilling to withdraw to the bank account from which you originally deposited funds.
  • A photo of the front and back of your government-issued ID.
  • Bank statements showing you are the accountholder of the two linked bank accounts. 
  • Amount and specific bank account that you’d like to transfer funds to.
Trevor shows you how to link your bank account in under 4 minutes

Head to your Settings page and click Get started

Before you can link an account, you must have passed KYC. 

Once you’ve passed KYC, you’ll see “STEP 3: LINK YOUR BANK ACCOUNT” at the top of the screen.

Accounts > Get started > STEP 3: LINK YOUR BANK ACCOUNT

Click + Add new bank and follow the on-screen instructions. You can select your bank from the list, search for it at the top, or link your bank details manually.

Once you find your bank, you’ll be asked to enter your online banking credentials (username and password) for the bank you wish to use. 

Choose your bank from the list or enter it in the search box
Enter your online banking log-in details
Select the account you want to use (avoid savings accounts)

Our partner Plaid will then set up your bank account through an API. We never see your details and never store them. To learn how Plaid protects your data, visit their security page.  

If your bank isn’t listed, you can link your bank account manually. You’ll need to enter some details and then Plaid will deposit two small amounts into your account. 

Follow the instructions to link your bank manually

You then need to confirm these amounts. To do so, click Verify now on the relevant bank card listed under your Settings and then enter the amounts when prompted on-screen.

These small deposits verify your account is linked correctly and will be withdrawn when they expire. 

How long do ACH transfers take?

Most ACH transfers (around 90%) take no more than 10 business days to process and credit your account. However, bank errors or delays can extend this.

We rely on your bank to send the funds and include necessary information like the reference code, so we can’t say for certain when your ACH will reach us.

While we process your ACH, you’ll earn an immediate 4% APY through our Instant Credit program up to the following limit:

Your Instant Credit limit = Value of your balance + 1,000   (max $5,000)

For example, if you have a balance of $3,000, your Instant Credit limit is $4,000. This means you can deposit up to $4,000 in a single transaction and earn 4% APY on it immediately, or you can invest the same amount in a fixed-term crypto-backed loan. 

*As of November 18th, 2020 — once your ACH transfer is cleared — you must wait 7 days to withdraw. This helps avoid ACH reversals (which cost you money) and keeps withdrawals free. 

*As of March 4th, 2021 – non-diamond members may only make a new ACH deposit after their current deposit has successfully cleared.

ACH reversals – what they are and how to avoid them

Trevor explains what ACH reversals are and how to avoid making them.

An ACH reversal happens when an ACH gets canceled and the money returns to your account. This might happen for several reasons, such as:

  • Duplicate transactions.
  • Insufficient funds.
  • Canceled transfer.
  • The account is frozen.
  • The account doesn’t support ACH.

Reversals are bad for you and us. It means you wait longer for your funds to arrive and they expose us to additional costs. To avoid reversals, please ensure you:

  • Link a bank account that supports ACH.
  • Have enough money in your account for at least 48 hours after your ACH request.
  • Link a checking account, not a savings account, to avoid any withdrawal limits.
  • Ensure your deposit amount is less than 70% of your available bank balance for the duration of the transfer.

Note: as of March 2, 2021 the penalties for ACH reversals have changed along with a new 70% rule.

For all ACH reversals, your account will be temporarily suspended and an email will be sent to you from our customer service team to find out what went wrong. The new fees are listed below.

  • 1st reversal — a $20 fee is incurred.
  • 2nd reversal — a $30 fee is incurred.
  • 3rd reversal — a $50 fee is incurred.

Also, be certain your deposit amount is less than 70% of your available bank balance for the duration of the transfer. In other words, if you have a bank balance of $1,000 you can only deposit up to $699. Important: please ensure your balance stays within this limit until your ACH settles otherwise it’ll be reversed. 

Deposit credit system 

To minimize ACH reversals (which result in bank fees), you earn a higher deposit limit with each successful deposit through our credit system. You start with zero deposit credits, which gives you a deposit limit of 30% of your available bank balance. 

When your deposit succeeds, you earn 5 credits, which increases your deposit limit. The more points you earn, the higher your deposit limit:

ACH credits                                            The percentage you can deposit:

From zero to 5                                                        30% of your available balance 

From 5 to 10                                                         40% of your available balance 

From 10 to 15                                                        50% of your available balance 

 15 or above                                                           70% of your available balance 

What happens if your ACH is reversed?

For every ACH reversal, 10 points are deducted from your score. Your account will also be suspended until our customer support team resolves the issue. If your score drops below zero, please contact us on [email protected]

What if your bank doesn’t support ACH?

If your bank doesn’t support ACH transfers through Plaid, or if you want to regularly send $5,000 or more, you can still add an unlinked bank account.

Adding an unlinked bank account means you spend less time filling in bank information next time you withdraw. Just click + Add new bank and fill in your account details. The next time you withdraw, you’ll be able to select these details instead of entering them manually. 

Saved and unlinked bank accounts can be used with wires only. You won’t be able to send or receive an ACH unless you link a US bank account with Plaid. If you send us an ACH anyway, it’ll be returned to your account unpaid. 

That’s it! You now have all the info you need to set up a linked bank account and withdraw or deposit using ACH transfers. Let us know at [email protected] if you have any problems.

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Chris Roper

Chris Roper

Communications Manager

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