![]() Although it’s been suspended on a federal level, many banks still have the same withdrawal limits in place. ![]() Unfortunately, Regulation D is still something you need to watch out for. Your savings account also will still earn interest according to the bank’s usual procedures, even if you are making more transactions than usual from the account. The rules change also has some other specifications for how banks and credit unions can manage and administer bank accounts and their financial reserve requirements, but most consumers have not seen any other significant changes to their accounts.įor example, your savings account will still be called a savings account, even if you make 10 convenient transactions per month from it. According to the Fed’s savings deposits FAQs, “The Board does not have plans to re-impose transfer limits but may make adjustments to the definition of savings accounts in response to comments received on the Board’s interim final rule and, in the future, if conditions warrant.” The change does not have a stated end date. The move also was part of the Fed’s stated strategy to assist consumers who were struggling financially as a result of the coronavirus pandemic and who could be helped by having more frequent access to their savings. ![]() This six-per-month limit was deleted because the Fed determined reserves were sufficient to no longer warrant restrictions on the number of monthly withdrawals. Individual banks and credit unions, however, may still have limits in place. Instead of limiting bank customers to six convenient transfers or withdrawals from a savings or money market account per month, Fed rules now allow for unlimited transfers or withdrawals. Under the revision to Regulation D announced in 2020, the Fed has loosened requirements for how banks treat savings deposits. However, as part of the federal government’s financial response to the Covid-19 crisis, the Fed made changes to Regulation D so people could dip into their savings more frequently without penalty. The rule never applied to checking accounts, which is why those always allowed unlimited withdrawals. Regulation D helped ensure banks had adequate reserves by limiting the number of withdrawals customers could make from savings and money market accounts each month. Why Does Regulation D Exist?īanks and credit unions are required by federal law to keep a certain amount of cash on hand-also called reserve requirements-to make sure they can cover customer withdrawals. If you went over the monthly limit, your bank could potentially charge you a fee per excess withdrawal, close your savings account or convert it to a checking account. Regulation D required savers to be careful about how many transfers or withdrawals they made. (If the bank processed your request online, it counted against your monthly limit.) You could make unlimited withdrawals over the phone-but only if the teller cut you a check by mail.(Those transactions were not considered “convenient.”) You could make unlimited withdrawals from an ATM or in person at a bank.There were two major exceptions to Regulation D: Transfers made by computer, mobile device or phone.Overdraft transfers (where you link your savings account to a checking account as a backup for overdrafts). ![]() Bill payments deducted directly from your savings account.Automated Clearing House (ACH) payments and electronic funds transfers (EFTs).Regulation D had required savings accounts to be limited to a total of six “convenient transfers and withdrawals” per month. Until April 24, 2020, the Federal Reserve’s regulation limited the number of withdrawals you could make from a “savings deposit” account, which included both savings accounts and money market accounts. Regulation D is a federal rule regulating how banks and credit unions manage your savings deposits. ![]()
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