Regulation D And Savings Account Withdrawal Limits – Here’s What Changed

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Regulation D used to limit savings account withdrawals to six per month. The Federal Reserve scrapped that rule in April 2020. But many banks pretended nothing changed and still enforce the old six-withdrawal limit — because they can.

Here’s what you need to know and how to avoid getting hit with unnecessary fees.

What is Regulation D?

Regulation D was a Federal Reserve rule that required banks to maintain reserves against certain types of deposits and limited “convenient” withdrawals from savings accounts to six per statement cycle.

The rule distinguished between two types of accounts:

• Transaction accounts (checking): Designed for unlimited daily transactions like paying bills, writing checks and making purchases.
• Savings deposits (savings and money market accounts): Intended for accumulating money, with limits on how often you could move money out electronically.

The six-withdrawal cap applied specifically to “convenient” transactions — things like online transfers, bill pay, automatic payments and debit card purchases. In-person withdrawals and ATM transactions were always unlimited.

Why the limit existed: The Federal Reserve used reserve requirements as a tool to control monetary policy. By limiting withdrawals on savings accounts, regulators helped banks maintain predictable cash reserves and drew a clear regulatory line between checking (reservable) and savings (non-reservable) deposits.

The 2020 rule change: What actually happened

In April 2020, as the pandemic hit, the Fed reduced bank reserve requirements to zero and deleted the six-transaction limit from the regulatory definition of “savings deposits.” The goal was to give Americans more financial flexibility during economic uncertainty.

The Fed has confirmed this change is not temporary. Reserve requirement ratios remain at zero as of 2026, and the Board does not have plans to reimpose transfer limits.

What changed:

• Banks are no longer federally required to limit withdrawals
• The regulatory distinction between savings and checking accounts blurred
• Consumers theoretically gained unlimited access to savings

What didn’t change:

• Banks can still impose their own withdrawal limits if they want
• Many banks kept the six-withdrawal restriction in place
• Excess withdrawal fees remain common

Which transactions count toward withdrawal limits?

If your bank still maintains withdrawal restrictions, these are the transactions that typically count — and don’t count — toward your monthly limit.

Limited transactions (count toward six):

• Electronic transfers such as online bill pay, automatic transfers between accounts and transfers via mobile banking apps.
• Outgoing wire transfers from your savings account to other banks or individuals.
• Debit card purchases on money market accounts (savings accounts rarely offer debit cards).
• Automated payments set up through your bank’s bill pay service or third-party services like Zelle.
• Overdraft protection transfers from your savings account to cover checking account overdrafts.

Transactions that typically don’t count toward limits:

• ATM withdrawals and in-person teller transactions are generally exempt from withdrawal limits, even at banks that maintain restrictions. You can withdraw cash at ATMs or visit a branch without affecting your transaction count.
• Direct deposits and incoming transfers don’t count since they add money to your account.
• Interest payments and other bank-initiated transactions are also excluded.
• Account-to-account transfers within the same bank may be treated differently depending on the institution, so check your bank’s specific policy.

Do banks still limit savings account withdrawals?

Yes — many do, even though they don’t have to. The split generally falls along these lines:

Banks that have eliminated limits: Many online banks and credit unions have eliminated limits entirely. This includes Ally Bank, Marcus by Goldman Sachs, American Express National Bank, Capital One 360, among others.

Banks that still enforce limits: Most traditional brick-and-mortar banks, including Wells Fargo, Bank of America and Chase, continue to cap convenient withdrawals at six per month.

What happens if you exceed the limit

If your bank still enforces withdrawal restrictions, here’s what you may face:

• Excess transaction fees: Typically $5–$15 per transaction over the limit.

• Account conversion: Your savings account may be converted to a checking account, which usually means a lower interest rate.

• Account closure: Repeated violations can result in the bank closing your account entirely.

Check your bank’s specific policy — it should be disclosed in your account agreement or fee schedule.

A lot of consumers don’t realize their bank is still charging excess withdrawal fees for a rule the Fed dropped years ago. Before you assume you’re stuck with these limits, check whether your bank has updated its policies — and if it hasn’t, that’s a strong signal it’s time to shop around. The difference between a bank that charges you $10 every time you touch your savings and one that gives you unlimited access at a higher APY is real money.”

— Hanna Horvath, Managing Editor, Deposits at Bankrate

Should you care about Regulation D in 2025?

Only if your bank still enforces withdrawal limits. Here’s how to figure out your situation and what to do about it.

1. Know your bank’s policy

Don’t assume anything. Log into your account or call customer service to confirm: How many withdrawals are you allowed per month? What’s the fee for exceeding that number? Which types of transactions count toward the limit?

2. Choose the right account for your needs

The best account setup depends on how you use your money:

• If you rarely touch your savings: Any high-yield savings account works, even with withdrawal limits. You’re earning up to 4.00% APY on your emergency fund and barely accessing it.
• If you need frequent access: Switch to a bank with unlimited withdrawals or use a high-yield checking account for money you touch regularly.
• If you pay bills from savings: Stop. Move bill-paying money to checking where it belongs. Use automatic transfers to move your monthly expenses from savings to checking once per month.

3. Avoid unnecessary fees

Excess withdrawal fees are completely avoidable if you structure your accounts intentionally. Keep one to two months of expenses in checking. Use savings for true emergencies and longer-term financial goals. Schedule a single monthly transfer from savings to checking rather than multiple small ones.

The bottom line

Regulation D’s withdrawal limits officially ended in April 2020, but many banks act like nothing changed. Some still cap withdrawals at six per month and charge fees if you exceed that limit — simply because they can, not because they have to.

Don’t accept withdrawal limits as inevitable. Plenty of banks eliminated these restrictions years ago and offer better rates to boot. If your bank is nickel-and-diming you with excess withdrawal fees, it’s time to switch.

If you’re paying excess withdrawal fees, you’re leaving money on the table. Online banks with unlimited withdrawals and 4.20% APY exist. Use them.

FAQs about Regulation D

• Is the six-withdrawal limit still in effect?
  

  Not federally. The Federal Reserve suspended the Regulation D limit in April 2020. However, many banks still enforce a six-withdrawal limit as their own internal policy. Check with your specific bank to understand their current rules.

   

• What happens if I exceed my bank’s withdrawal limit?
  

  Most banks charge an excess withdrawal fee of $5-15 per transaction over the limit. If you repeatedly exceed the limit, your bank may convert your savings account to a checking account or close it entirely.

   

• Can I withdraw money from savings at an ATM without penalty?
  

  Yes. ATM withdrawals and in-person teller transactions don’t count toward withdrawal limits, even at banks that restrict electronic transfers. You can make unlimited ATM and teller withdrawals.

   

• Which banks have eliminated withdrawal limits on savings accounts?
  

  Many online banks eliminated limits after the 2020 rule change, including Ally Bank, Marcus by Goldman Sachs, American Express National Bank, and Capital One.

• Should I use my savings account to pay bills?
  

  No. Even with unlimited withdrawals, savings accounts aren’t designed for frequent transactions. Use a checking account for bills and daily expenses, and keep savings for emergencies and financial goals. This also helps you earn maximum interest since you’re not constantly depleting your balance.