Update 3/4/21: Citi is now showing on their website, “Beginning April 19, 2021, Citi is lifting the six-per-statement limit on transfers from your savings and money market accounts.” Hat tip to reader SamL
Update 6/29/20: Marcus is the first major bank to fully eliminate the 6-withdrawal limit. (link)
According to guidance from the Federal Reserve this change is permanent; the fed has no plans of bringing back the six-per-month rule in the future. The initial message from the Federal Reserve on 4/24/20 stated this is an ‘interim’ rule, but they released follow-up guidance (apparently on 5/13/20) that they have no plans on re-imposing the rule.
This would be a great, consumer-friendly change if it gets adapted by the banks for the long haul. Once again, this rule allows banks to hav no withdrawal limits; ultimately it’s up to each bank whether to have a limit and/or a fine for exceeding the limit. Thus far, almost no banks have done away with the limit in a permanent form (only temporarily). It’s possible that’ll change over time.
Hat tip to reader D
Original Post April 24, 2020:
The Federal Reserve Board on Friday announced an interim rule to delete the requirement of the six-per-month limit on transfers from savings accounts.
The Federal Reserve Board on Friday announced an interim final rule to amend Regulation D (Reserve Requirements of Depository Institutions) to delete the six-per-month limit on convenient transfers from the “savings deposit” definition. The interim final rule allows depository institutions immediately to 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 at a time when financial events associated with the coronavirus pandemic have made such access more urgent.
The regulatory limit in Regulation D was the basis for distinguishing between reservable “transaction accounts” and non-reservable “savings deposits.” The Board’s recent action reducing all reserve requirement ratios to zero has rendered this regulatory distinction unnecessary.
Concurrently, the Federal Reserve is making temporary revisions to the FR 2900 series, FR Y-9, and FR 2886b reports to reflect the amendments to Regulation D.
The rule allows financial institutions to make that change, but ultimately your bank will have to allow it in order for you not to get hit with a over-the-limit penalty. Ally had already announced the waiver of that fee (not clear how they were allowed to do so legally), and I’d expect to see others make that temporary policy now as well.
Hat tip to GoBlue2006