For many years, a federal rule called “Regulation D” limited you to six savings-account withdrawals per month. However, Regulation D’s (Reg D) withdrawal limit is no longer in force.
Federally-Regulated Withdrawal Limits Have Been Indefinitely Suspended
Reg D is a federal rule meant to ensure that banks have enough money to do business. Part of this regulation includes limiting savings account withdrawals to six per month. Any withdrawals more than that amount meant you often had to pay a fee to your bank. The Federal Reserve indefinitely suspended Regulation D’s withdrawal limit in April 2020 to give you more access to your funds due to increasing financial burdens. Although Reg D’s withdrawal limit is no longer in effect, banks still have the authority to set limits on savings account withdrawals. Your bank may still have the six-withdrawal limit and charge a fee if you go over the limit.
Why and How Regulation D Limited Savings Account Withdrawals
Regulation D was established to regulate how much money banks need to have on hand in three different types of accounts, one of which is a savings account. Banks use funds from savings accounts to do business, such as granting home mortgages or consumer loans. As a result, banks only hold a small portion of their customers’ deposits. Under Regulation D, you were allowed to make six “convenient” transfers or withdrawals without penalty. Convenient transfers and withdrawals include:
ACH transfersOverdraft transfersOnline and mobile transfersDebit card transactionsTransfers made by phoneBill pay transfers
Exceptions To Regulation D Limits
Certain savings account transactions aren’t subject to Reg D’s withdrawal limit. These include:
ATM or mail withdrawals or transfersWithdrawals or transfers you do in person with a tellerWhen you call your bank and ask for a withdrawal by check
ATM Withdrawal Limits
Your bank may impose withdrawal limits on the ATM withdrawals you make. These limits may be different from Regulation D standards. For example, some banks may limit how much money you can get in one day or from a single withdrawal. These limits may be based on the account type, available funds in the account, the ATM’s available funds, and in some cases, how long you’ve been a customer of the bank. Want to read more content like this? Sign up for The Balance’s newsletter for daily insights, analysis, and financial tips, all delivered straight to your inbox every morning!
