Account holders are no longer limited on how many transfers or withdrawals they can make every month from their savings accounts thanks to an interim rule by the Federal Reserve Board that took effect last Friday. Prior to that, bank customers were not permitted more than six transactions a month.
“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,” according to a statement by the Fed.
The board’s decision to reduce all reserve requirement ratios to zero has rendered this regulatory distinction unnecessary, it said.
How long the rule will remain in effect is unknown. According to BankingDive.com, the Independent Community Bankers of America (ICBA) requested the limit be lifted for at least a year so consumers could have better access to their bank accounts to cover bills and household expenses.