Savings Account Withdrawal Limits: Is the Six-Per-Month Rule Still in Force?
What Regulation D used to require, what the Federal Reserve changed in April 2020, why many banks still limit savings withdrawals, which transactions count and how to avoid excess-transaction fees.
Listen to this article
Key takeaways
- The federal limit of six "convenient" transfers or withdrawals per month from savings deposits was removed by the Federal Reserve on April 24, 2020.
- Banks and credit unions may still impose their own limits and charge fees or convert accounts that exceed them.
- Your account agreement and fee schedule decide what applies to you.
- Withdrawals at a branch or ATM were never counted under the old rule.
For decades, savers ran into a confusing rule: no more than six certain withdrawals a month from a savings account. Many still see that limit today and assume it is federal law. It is not, anymore. What remains is a patchwork of bank policies that grew out of the old regulation.
Please note
Federal rules as of October 2026. Each bank sets its own policy for savings and money market accounts; check your institution's current disclosures.
What Regulation D required
Regulation D defines the types of deposits for reserve requirement purposes. A "savings deposit" used to be defined, in part, by a limit of six convenient transfers or withdrawals per month, such as online and phone transfers, debit card purchases, checks and preauthorized payments. Accounts that went beyond the limit could be treated as transaction accounts, which carried reserve requirements for banks.
| Under the old rule, counted | Not counted |
|---|---|
| Online or mobile transfers to another account | Withdrawals in person at a branch |
| Telephone transfers | ATM withdrawals |
| Checks, drafts and debit card payments | Transfers to repay a loan at the same bank |
| Automatic or preauthorized transfers to third parties | Withdrawals mailed as a check to the account holder |
What changed in 2020
In March 2020 the Federal Reserve cut reserve requirement ratios to zero. On April 24, 2020, it issued an interim final rule deleting the six-per-month limit from the definition of savings deposits, so that customers could make unlimited transfers and withdrawals if their bank allowed it. The federal limit has not been reinstated since, and reserve requirement ratios remain at zero.
Why many banks still limit withdrawals
- Systems and habit: many banks kept the old limit in their account agreements.
- Fees as revenue: some charge an excess-transaction fee, commonly a few dollars per transaction.
- Account design: savings accounts are meant for saving; frequent use can lead a bank to convert the account to checking or close it.
- High-yield pricing: banks that pay high rates prefer stable balances.
What happens if you go over a bank's limit
Banks that kept a limit usually do one or more of the following, as far as their account agreement allows:
- Charge an excess transaction fee for each transfer or payment above the limit.
- Decline the transfer or the payment.
- Convert the account to a checking account or close it after repeated excess transactions, which can also mean a lower interest rate.
Depending on the bank, the count runs per calendar month or per statement cycle, and it usually covers only money going out, not deposits.
Credit unions, CDs and brokerage cash
- Credit unions were covered by the same 2020 change, because Regulation D applies to all depository institutions. Some still apply a limit to share savings accounts in their own terms.
- CDs work differently: taking money out before maturity usually costs an early withdrawal penalty, unless you have a no-penalty CD.
- Money market funds at a brokerage are not bank deposits. They were never subject to the Regulation D limit, and they are not FDIC insured.
How to avoid problems
- Read the fee schedule for "excess withdrawal" or "transaction limit" language.
- Pay bills from checking, and move money from savings in larger, less frequent transfers.
- Link savings and checking at the same bank for overdraft protection only if transfers for that purpose are free.
- Choose an account without limits if you need frequent access, or a money market account with checks; see money market vs. savings.
Frequently asked questions
Is there still a federal limit on savings account withdrawals?
No. The Federal Reserve removed the six-per-month limit from Regulation D in April 2020.
Why does my bank still limit savings withdrawals to six a month?
Banks may set their own limits as part of their account terms, even though federal law no longer requires them.
Do ATM withdrawals count toward the limit?
They did not count under the old federal rule. Under a bank's own policy, it depends on the account agreement.
Can a bank close my savings account for too many withdrawals?
Yes, if its terms allow it, a bank may convert or close an account that is used like a checking account.
Do money market accounts have the same limits?
The old federal limit applied to money market deposit accounts too. Today, any limit comes from the bank's own terms.
