Regulation D is a Federal Reserve rule that once capped certain withdrawals and transfers from savings and money market accounts at six per month, though the Fed suspended that limit in 2020 and it remains suspended as of May 2025. Some banks still choose to enforce it anyway.
Why the Rule Existed in the First Place
The Fed built Regulation D to help manage monetary policy by ensuring banks and credit unions kept adequate cash reserves on hand. Limiting how often people could pull money out of savings type accounts was part of that reserve strategy. The cap applied specifically to what regulators considered convenient transactions: bill pay, checks written against the account, debit card purchases, overdraft transfers, and transfers made by phone, fax, or online. Withdrawals made in person at a branch or through an ATM never counted toward the limit, and checking accounts were exempt entirely since they exist for everyday spending rather than saving.
April 2020 Changed the Math
The Fed announced in April 2020 that it would stop requiring financial institutions to enforce those transaction caps. Two things drove the shift. The central bank moved to a different approach for managing reserves, and it wanted to give households easier access to their own cash as the pandemic hit paychecks and savings across the country. Importantly, the interim rule did not ban banks from keeping the six transaction limit if they wanted to. Plenty of institutions kept it anyway, treating it as an internal policy rather than a federal mandate.
What Regulation D Is Not
It is easy to confuse this with a different rule bearing the same name. Federal Reserve Regulation D has nothing to do with Securities and Exchange Commission Regulation D, which covers exemptions for private securities placements. One governs bank reserves and consumer savings limits. The other governs how companies can raise capital without a full public offering. They just happen to share a letter.
Where Things Stand With Savings and Money Market Limits Today
As of May 3, 2025, the suspension is still in effect, and the Fed's current approach to managing an ample supply of money in the banking system suggests it is likely to stay that way. That does not mean every account is unlimited, though. Individual banks and credit unions retain the right to set their own transaction caps, and many still cap savings and money market withdrawals at six per month, charging fees or converting accounts if customers exceed that.
| Question | Answer |
|---|---|
| Is Regulation D still suspended? | Yes, as of May 3, 2025 |
| What did the rule require? | A maximum of six certain transactions per month from savings and money market accounts |
| Can a bank still limit withdrawals? | Yes, at its own discretion |
| Can I withdraw $20,000 from a bank? | Yes, though large withdrawals may require advance notice depending on bank policy |
Checking Your Own Account Before You Move Money
Because enforcement now varies by institution, the only reliable way to know your limits is to ask. Some banks still flag a seventh transaction in a given month and charge a fee or shift the account to checking status. Others have dropped the rule altogether. If you plan a large withdrawal, such as $20,000, most banks will allow it, but many require advance notice for that kind of amount, particularly in cash. Calling ahead or checking your account agreement avoids surprises and any unnecessary fees tied to a policy that, technically, the Fed no longer requires anyone to follow.
