What Is Federal Reserve Regulation D?

Regulation D is a Federal Reserve rule created to ensure banks and 澳洲幸运5官方开奖结果体彩网:credit unions have enough cash reserves, and it sets requirements for savings and money mar🦩ket accounts.

In 2020, the Fed changed the reserve requirement for financial institutions and removed the limit on consumers’ savings withdrawals. Despite the rule's suspension, banks and 澳洲幸运5官方开奖结果体彩网:credit unions wꦫere given the option to enforce a monthly🐓 limit.

How Regulation D Worked

The 澳洲幸运5官方开奖结果体彩网:Federal Reserve put Regulation D in place to implement 澳洲幸运5官方开奖结果体彩网:monetary policy. One way it sought to ensure adequate levels of reserves at financial institutions was to limit withdrawals and transfers from 澳洲幸运5官方开奖结果体彩网:savings accounts.

The rul♍e does not limit all types of transactions; it focuses on those considered “convenient” transacꩲtions, and those include:

• Bill pay services
• Writing a check
• Using a debit card
• Overdraft transfers
• Money transfers completed by phone, fax, or online

Bank checks and withdrawals or transfers made inside a bank or at an ATM did not count toward the mont🧜hly limit.

The rule applied to 澳洲幸运5官方开奖结果体彩网:savings-related accounts and did not limit 澳洲幸运5官方开奖结果体彩网:checking accounts, which are transaction-oriented (intended for tasks such as paying bills and making purchases).

Changes in Regulation D

In April 2020, the Federal Reserve announced that it no longer required financial institutions to enforce transaction limits because it switched to a different reserve strategy. Additionally, it wanted to give consumers greater access to their cash during the coronavirus pandemic and the related economic impact. However, the interim rule did not forbid financial institutions from maintaining the withdrawal limits, and some banks and credit unions continue to enforce the monthly caps.

Which Transactions Were Limited?

The rule covered these transaction types for savings and 澳洲幸运5官方开奖结果体彩网:money market accounts:

• 澳洲幸运5官方开奖结果体彩网:Online transfers
• Phone or fax transfers
• Overdraft transfers to a 澳洲幸运5官方开奖结果体彩网:checking account
• Debit card transactions
• Check transactions
• Automated transfers, such as recurring withdrawals or bill pay

The Bottom Line

Some banks and credit unions enforce a monthly six-transaction limit on savings or 澳洲幸运5官方开奖结果体彩网:money market accounts, but Regulation D no longer requires the limit. Contact your financial institution or check your account details to see if you are subject to any limits and to understand any related issues.