I too have seen multiple references to "changing an account to non-interest bearing" in connection with excessive savings transfer activity. In actuality, the bank's options are to close the offending account; take away whatever transfer capability creates the problem (for example, transfers to cover overdrafts in a checking account or debit card use at point of sale or ACH debit access for recurring debits); or convert the account to a transaction account for which the depositor is eligible (DDA for a business that can't have a NOW account; NOW account for individuals, etc.).
John S. Burnett
Fighting for Compliance since 1976
Bankers' Threads User #8