Fed eliminates transfer restrictions

Apr 27, 2020

ICBA commended the Federal Reserve Board for its interim final rule suspending the six-per-month limit on transfers or withdrawals from savings and money market accounts—as advocated by ICBA.

In a letter to the Fed last month and in follow-up meetings, ICBA and community bankers advocated suspending the Reg D restrictions for at least 12 months due to the COVID-19 emergency. ICBA noted that transfers will increase as consumers respond to financial pressures related to COVID-19.

The Fed's interim final rule permits financial institutions to immediately and permanently end enforcement of the restrictions—allowing customers to make an unlimited number of convenient transfers and withdrawals from their savings deposits.

The rule notes that many depositors have a more urgent need to access their funds remotely due to the COVID-19 emergency.