In light of COVID-19, the Federal Reserve released an interim rule to Regulation D on April 24, 2020 suspending the 6 per month limit on savings deposits.
In March, the Federal Reserve eliminated reserve requirements on all transaction accounts, which in turn eliminated the regulatory distinction between “transaction accounts” and “savings deposits.” Due to this elimination, Regulation D is amended to delete the six transfer limit from the “savings deposit” definition and includes deletion of the provisions in the “savings deposit” definition that require depository institutions either to prevent transfers and withdrawals in excess of the limit or to monitor savings deposits ex post for violations of the limit. This will allow customers to access their funds via remote means more appropriately during the pandemic and will help depository institutions simply their administrative operations, such as reporting practices. The interim final rule allows depository institutions to immediately suspend enforcement of the six transfer limit and to allow their customers to make an unlimited number of convenient transfers and withdrawals from their savings deposits.
Although the interim final rule permits depository institutions to suspend the enforcement of the six transfer limit, they are not required to.
The Federal Reserve has released FAQs regarding the interim rule’s impact on depository institutions.
This rule is effective immediately. The Federal Reserve is also seeking comments, specifically on the considerations that may lead depository institutions to choose or be required to retain a numeric limit on the number of convenient transfers that may be made each month from a savings deposit, until 60 days after the publication of the interim rule in the Federal Register.