Federal Reserve Regulation D: What It Is, Limits on Withdrawals

What Is Federal Reserve Regulation D?

Regulation D is a Federal Reserve rule created to ensure banks and credit unions have enough cash reserves, and it sets requirements for savings and money market accounts.

In 2020, the Fed changed the reserve requirement for financial institutions and removed the limit on consumers’ savings withdrawals. Despite the suspension of the rule, banks and credit unions were given the option to enforce a monthly limit.

Key Takeaways

• Regulation D, a federal rule, set reserve requirements for banks and credit unions.
• It limited the number of withdrawals or transfers consumers could make from their savings and money market accounts.
• Financial institutions are no longer required to impose the limits.
• Some banks and credit unions have kept the six-transaction limit in place, while others do not enforce the rule.

How Regulation D Worked

The Federal Reserve put Regulation D in place to implement monetary policy.

One way it sought to ensure adequate levels of reserves at financial institutions was to limit withdrawals and transfers from savings accounts. The rule does not limit all types of transactions; it focuses on those considered to be “convenient” transactions, and those include bill pay services, writing a check, using a debit card, overdraft transfers, and money transfers completed by phone, fax, or online.

Bank checks and withdrawals or transfers made inside a bank or at an ATM did not count toward the monthly limit.

The rule applied to savings-related accounts and did not limit checking accounts, which are transaction-oriented (intended for tasks such as paying bills and making purchases).

Important

Fed Reg D is not the same as Securities and Exchange Commission (SEC) Regulation D, which governs private placement exemptions.

Changes in Regulation D

In April 2020, the Federal Reserve announced that it was no longer requiring financial institutions to enforce transaction limits because it was switching to a different reserve strategy. Additionally, it wanted to give consumers greater access to their cash during the coronavirus pandemic and the related economic impact. However, the interim rule did not forbid financial institutions from maintaining the withdrawal limits, and some banks and credit unions continue to enforce the monthly caps.

Which Transactions Were Limited?

The rule covered these transaction types for savings and money market accounts:

• Online transfers
• Phone or fax transfers
• Overdraft transfers to a checking account
• Debit card transactions
• Check transactions
• Automated transfers, such as recurring withdrawals or bill pay

Is Regulation D Still Suspended?

As of May 3, 2025, Regulation D was still suspended. It will likely continue to be suspended as it is part of the Fed’s ample supply of money strategy.

What Are the Requirements of Regulation D?

Regulation D required banks to restrict transactions from savings and money market accounts to a maximum of six per month to help the Fed implement monetary policy. The requirements were suspended in 2020.

Can I Withdraw $20,000 From a Bank?

Yes, you can withdraw $20,000 from a bank. Your bank may not allow that amount in one transaction, so it’s best to check before you make the withdrawal to learn its procedures.

The Bottom Line

Some banks and credit unions enforce a monthly six-transaction limit on savings or money market accounts, but they are no longer required to do so by Regulation D. Contact your financial institution or check your account details to see if you are subject to any limits and to understand any related issues.