Regulation D and savings account withdrawal limits – here’s what changed

Group 1 - The Federal Reserve eliminated the six-withdrawal limit on savings accounts in April 2020, allowing consumers theoretically unlimited access to their savings [5][10] - Despite the regulatory change, many banks continue to impose the six-withdrawal limit, charging fees of $5-15 for excess withdrawals [7] - The distinction between savings and checking accounts has blurred, as banks are no longer federally required to limit withdrawals from savings accounts [9] Group 2 - Regulation D previously required banks to maintain reserves and limited convenient withdrawals from savings accounts to six per month [3][4] - The Federal Reserve's goal in removing the limit was to provide Americans with more financial flexibility during the economic uncertainty caused by the pandemic [5] - Transaction accounts (checking) are designed for unlimited daily transactions, while savings deposits (savings and money market accounts) were intended for accumulating money with limits on electronic withdrawals [8]