Fed to Suspend Six-Withdrawal Limit on Transfers from Savings Accounts

The Federal Reserve announced today that it would provide relief from the six-per-month limit on transfers or withdrawals from savings accounts under Regulation D, effective immediately. This action—advocated by the American Bankers Association—is intended to grant more flexibility to consumers to access their savings deposits at a time when many are facing financial hardships due to the coronavirus pandemic.

The Fed noted that its recent action reducing all reserve requirement ratios to zero has eliminated the need to distinguish between reservable “transaction accounts” and non-reservable “savings deposits.” The Fed also made corresponding updates to the Call Report to reflect these changes.