Regulation D And Savings Account Withdrawal Limits – Here's What Changed Bankrate Caret RightMain Menu Mortgage Mortgages Financing a home purchase Refinancing your existing loan Finding the right lender Additional Resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Bank Banking Compare Accounts Use calculators Get advice Bank reviews Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Credit Card Credit cards Compare by category Compare by credit needed Compare by issuer Get advice Looking for the perfect credit card? Narrow your search with CardMatch Caret RightMain Menu Loan Loans Personal Loans Student Loans Auto Loans Loan calculators Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Invest Investing Best of Brokerages and robo-advisors Learn the basics Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Home Equity Home equity Get the best rates Lender reviews Use calculators Knowledge base Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Loan Home Improvement Real estate Selling a home Buying a home Finding the right agent Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Insurance Insurance Car insurance Homeowners insurance Other insurance Company reviews Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Retirement Retirement Retirement plans & accounts Learn the basics Retirement calculators Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Advertiser Disclosure
Advertiser Disclosure
We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence.
Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Make Money
The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you. SHARE: On This Page
NoSystem images/Getty Images April 12, 2022 Matthew Goldberg is a consumer banking reporter at Bankrate. Matthew has been in financial services for more than a decade, in banking and insurance. David Schepp is a wealth editor for Bankrate, focusing on deposits and consumer banking content. Bankrate logo The Bankrate promise
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money. Bankrate logo The Bankrate promise
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Our banking reporters and editors focus on the points consumers care about most — the best banks, latest rates, different types of accounts, money-saving tips and more — so you can feel confident as you’re managing your money. Bankrate logo Editorial integrity
Bankrate follows a strict , so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. Here is a list of our . Key Principles
We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers. Editorial Independence
Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Bankrate logo How we make money
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Banks historically limited the number of transactions customers can make each month in savings and money market accounts, the result of , a Federal Reserve Board rule that limited withdrawals and transfers to six each statement cycle. But the Fed removed the limit in April 2020 to provide consumers increased access to funds they might need to navigate the economic fallout from the coronavirus pandemic. The Fed’s revision of Reg. D allowed banks to suspend enforcing the six transfer or withdrawal limit. Still, many banks have maintained the six-transaction limit, while others have increased the number of withdrawals and transfer permitted. American Express National Bank, for example, now allows up to nine withdrawals or transfers a month. The Fed’s move was termed an interim final rule, which is issued when there’s good cause to skip issuing a proposed rule, says Scott Birrenkott, assistant director of legal at the Wisconsin Bankers Association. Still, the proposal isn’t yet set in stone. “The Fed still hasn’t issued a final rule,” Birrenkott says. “So, some banks are still waiting for that final piece to kind of see. I know that some banks are curious whether that might change or something might be reversed, because it can be a big step to adjust all of their policies and procedures.” Transaction accounts vs nontransaction accounts
Checking accounts are designated transaction accounts under Reg. D, meaning their purpose is for conducting day-to-day business — bill paying, making purchases, etc. Reg. D places no limit on the number of transactions that can be made with checking accounts. Savings and money market accounts, known collectively as savings deposit accounts, are termed nontransaction accounts under Reg. D, meaning their purpose is for saving money. Prior to April 24, 2020, Reg. D required banks to limit the number of transfers or withdrawals from savings deposit accounts, a term that includes both and money market accounts, to six — and some banks still impose that limit. Checking accounts generally don’t have withdrawal limitations because they’re meant to be used for many transactions. Savings and money market accounts, meanwhile, are traditionally meant for saving money and not for daily transactions. Here are some examples of transactions on money market accounts and savings accounts that were limited under Reg. D: Withdrawals by official bank check Outgoing wire transfers Debit card purchases (likely only for money market accounts) Withdrawals or transfers via an automated clearing house service to pay a bill or a person or a withdrawal with a payment service such as Zelle Withdrawals or transfers made with a savings deposit account acting as overdraft protection for a checking account The purpose of Reg D
Reg. D limits were meant to help banks maintain reserve requirements, one of the Federal Reserve’s monetary policy tools. Reg. D requires banks to meet reserve requirements by holding cash either in their vaults or by maintaining the appropriate balance in a Federal Reserve Bank account. It classifies types of accounts and sets rules for calculating a bank’s reserve requirements. These reserve requirements apply to certain types of deposits and other liabilities that depository institutions have, according to the Federal Register. For instance, savings deposits aren’t subject to reserve requirements. But transaction accounts are subject to reserve requirement ratios. “Very generally speaking, banks make money by taking money in for deposit and then lending it out,” Birrenkott says. “However, banks cannot lend out every penny that they have on deposit, as deposit customers need to access some of their funds on deposit at the bank. Reserves must be kept for the transactions that occur each day. These reserves requirements are based upon the Fed’s monetary policy.” The run-on-the-bank scene in the movie “It’s a Wonderful Life” is an example Birrenkott cites to explain the need for reserve requirements. Unlike savings accounts, checking accounts don’t reserve the right to require at least seven days’ written notice for a withdrawal. Exceptions to Reg D restrictions
There are some withdrawals and transfers that are unlimited — and were unlimited before the April 2020 amendment. ATM withdrawals and withdrawals made through a bank teller at a bank branch don’t count toward the six transfers or withdrawal limits each statement cycle. Some savings accounts and money market accounts allow you to get an ATM card or a debit card for ATM access. Why it pays to know about Reg D
It’s important to know the limits banks impose on withdrawals and transfers when shopping for a new savings or money market account. A savings account might not be the right account for you if you plan to transfer money frequently between accounts. Some banks may restrict monthly withdrawals to less than 6
made Reg. D more consumer friendly. Before these Federal Reserve Board amendments, there was still a limit of six transfers and withdrawals each month. But within the six-transaction limit, no more than three could leave the institution, says Chris Cole, executive vice president and senior regulatory counsel for the Independent Community Bankers of America. “You’ve got a little more freedom from it,” Cole says. “Everyone was really confused about the difference between an internal withdrawal and an external withdrawal.” Some banks may still limit this number to less than six. Check with your bank to see if it has any special restrictions on money market or savings accounts. SHARE: Matthew Goldberg is a consumer banking reporter at Bankrate. Matthew has been in financial services for more than a decade, in banking and insurance. David Schepp is a wealth editor for Bankrate, focusing on deposits and consumer banking content. Related Articles