Federal Reserve Board Does Not Intend To Reimpose Limits on Savings Withdrawals

The Federal Reserve has no plans to reinstitute a rule that limits consumers to six transactions a month from their savings account.

Last month the Fed released an interim final rule revising so-called “Regulation D,” which imposed the limit. At the time, Fed officials indicated the rule was being loosened because of the coronavirus crisis. Consumers likely have a more urgent need for access to their funds by remote means, the Fed said.

In a recently issued “Frequently Asked Questions” about savings deposits, the Fed indicated that the rule will not be re-imposed after recovery from the pandemic. “The Board does not have plans to re-impose transfer limits but may make adjustments to the definition of savings accounts in response to comments received on the Board’s interim final rule and, in the future, if conditions warrant,” the Fed said.

Credit union trade groups have pushed for the rule change, saying that it gives credit union members more financial flexibility.

In a letter to the Fed, NAFCU President/CEO B. Dan Berger said a temporary change could pose operational problems for credit unions. Those institutions would have to make changes to accommodate the changes, only to reverse those changes when the rule is re-imposed.

Related:

FAQ about savings deposits from the Federal Reserve Board

NAFCU President/CEO B. Dan Berger’s letter to the Fed on savings withdrawal rule

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