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Federal Reserve Regulation D Limits Savings Account Withdrawals

Regulation D helps banks maintain enough cash to meet withdrawal requests by limiting how customers can use their savings accounts.

Federal Reserve Regulation D imposes reserve requirements on certain deposits and other liabilities of depository institutions. Regulation D previously limited savings account withdrawals to six per month.

As a result of the economic impact during the COVID-19 Pandemic the Federal Reserve Board suspended the six-per-month limit on convenient transfers from savings accounts. This means that depository institutions are not required to limit the number of convenient transfers that customers can make from their savings accounts.

Reg D is not expected to be reinstated, but banks and financial institutions can still charge fees for withdrawals from money market and savings accounts.

What is the purpose of Regulation D?

The purpose of Regulation D is to implement monetary policy and to maintain the liquidity and stability of the financial system. Reserve requirements help the Federal Reserve to control the money supply and to manage interest rates.

Types of financial institutions Regulation D applies to?

Regulation D applies to depository institutions such as banks, savings associations, savings banks, and credit unions. It also applies to U.S. branches and agencies of foreign banks and to Edge and Agreement corporations.

Type of transactions are subject to Regulation D

There are several types of transactions that cause bank customers subject to fees for exceeding withdrawal limitations that include:

  • Automated Clearing House (ACH) payments and electronic funds transfers (EFTs)
  • Bill payments deducted directly from your savings account
  • Debit card transactions
  • Overdraft transfers (where you link your savings account to a checking account as a backup for overdrafts)
  • Transfers made by computer, mobile device or phone
  • Checks written to a third party
  • Wire transfers


Example of banks that continue withdrawal limitations

Some banks and financial institutions continue to limit savings account withdrawals and charge fees for going over the 6 withdrawal limitation. There are exceptions, like SoFi Bank, that allows customers unlimited savings withdrawals with no fees or penalties.

Here are the savings withdrawal fees at the biggest banks in the U.S.:

  • Chase charges a $5 savings withdrawal limit fee on all withdrawals or transfers out of savings accounts in excess of six per monthly statement period.
  • Bank of America charges $10 for each withdrawal or transfer in excess of six per monthly statement cycle.
  • Wells Fargo has certain accounts that allow for unlimited transfers.


How to get around Regulation D savings withdrawal fees

Banks that adhere to Regulation D typically charge for withdrawals that exceed a certain number per month or for withdrawals that are made through certain methods, such as ATM withdrawals or wire transfers.

However, there are three ways to circumvent these fees:

  • Unlimited ATM withdrawals
  • Unlimited in-person bank withrawals
  • Withdrawals made by telephone


Bottom Line

Regulation D helps banks maintain enough cash to meet withdrawal requests by limiting how customers can use their savings accounts.

But it’s important to be aware of Regulation D, even though it’s suspended on a federal level. Many banks still have withdrawal limits in place, so you could be charged a fee or have your account closed if you make more than six outgoing transactions a month.

Review your savings account disclosure or call your bank to confirm their limits and fees.


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