In the world of banking, few rules have quietly frustrated more people than Regulation D—the federal rule that used to limit how often you could move money from your savings account. If you’ve ever gotten a passive-aggressive warning from your bank or even had your savings account converted into a checking account because you made “too many transfers,” then you’ve met Reg D in real life.
But something changed in 2020—quietly, and without much fanfare. The Federal Reserve suspended the transfer limits that made Reg D notorious. So does that mean you can now freely transfer funds between your accounts? Yes… and no.
Let’s break down what the Regulation D rule change really means, how it affects your savings strategy today, and what unique opportunities it opens up if you're paying attention. Because when rules quietly loosen, smart savers quietly win.
Regulation D (Reg D for short) is a Federal Reserve regulation that historically limited certain types of withdrawals and transfers from savings accounts to six per month. Go over that, and you risked penalties, warnings, or even account reclassification.
The rule applied to “convenient” transfers—meaning:
But it didn’t apply to:
Originally, it was meant to maintain a clear distinction between savings accounts (intended for, well, saving) and transaction accounts like checking accounts. By limiting withdrawals, regulators encouraged banks to keep savings accounts as stable sources of funds.
This stability gave banks more leeway with reserve requirements—the amount of money they had to hold versus lend out. It also made savings deposits cheaper and easier for banks to manage.
But that was before the world went digital, before budgeting apps made it normal to shift money daily, and long before a global pandemic changed how Americans managed cash.
In April 2020, the Federal Reserve amended Regulation D by eliminating the six-per-month transfer limit on savings accounts. The move was part of a broader set of emergency measures to support financial flexibility during the COVID-19 pandemic.
To quote the Fed directly:
“The Board believes that the transfer limits in Regulation D are no longer necessary to distinguish between transaction accounts and savings deposits.”
In other words: “Let people move their own money around—especially during a crisis.”
In 2020, the U.S. personal savings rate hit an all-time high of 33.8%—the highest since tracking began in the 1960s. The Reg D rule change gave Americans more flexibility during that savings surge, and some of that behavior stuck.
What’s especially interesting? The Fed did not require banks to remove the limits. It gave them the option to allow more flexibility. So, while Reg D is no longer enforcing those monthly limits, your bank still might.
Technically, yes—but only if your bank has updated its policies to reflect the Reg D change.
Some banks (especially online-first or fintech institutions) dropped the limits right away. Others, particularly legacy banks, kept them in place, either due to outdated systems, internal policies, or just plain inertia.
Even in 2025, several large banks still cap savings transfers at six per month, and some charge a fee (often $5 to $10) for going over.
To find out if you’re still affected:
Even if your bank has removed the Reg D limits, that doesn’t mean you should start hopping money between accounts like you’re playing ping-pong.
Here’s why:
Savings accounts often have lower fraud protection. If you’re initiating lots of online transactions, your checking account may offer stronger safeguards or faster dispute resolution.
Some banks use transfer behavior to reclassify your account. If you act too much like a checking account, your savings account might be switched—potentially losing interest or affecting your linked accounts.
Savings should still be about intentionality. Just because you can move money freely doesn’t mean you should. The mental shift of “this money is for saving” still matters.
Here’s where things get fun. If you’re intentional and a little creative, the lifting of Reg D limits opens up opportunities to improve your savings strategy—especially when it comes to automation, budgeting, and goal-based savings.
Before the rule change, setting up automatic transfers for multiple goals could accidentally trigger the limit. You had to lump transfers together or manually shift funds—a recipe for forgetfulness.
Now? You can:
It’s a small freedom, but one that can have major impact on consistency.
Say you have a high-yield savings account at a digital bank, but your checking is elsewhere. Pre-2020, you had to carefully plan how often you transferred funds to avoid penalties.
Now you can:
Pro Tip: Use this flexibility to create a 2-step friction process. Keep spending cash in checking, and put “tempting” cash in savings. You can still access it quickly, but you’ll think twice before you do.
In the past, emergency situations (like car repairs, medical bills, or travel snafus) could eat up your six monthly transfers—especially if you pulled small amounts multiple times.
Now, you don’t have to worry about rationing. You can:
If you’ve ever tried the envelope budgeting method, this one’s for you.
Set up separate savings accounts for:
Then, as your paycheck comes in, divide it among these accounts. When it’s time to pay a bill, pull the exact amount into checking.
Before the Reg D change, this setup was harder to maintain. Now, it’s an easy, low-maintenance way to keep cash organized.
This might be one of the most confusing parts of the Reg D change: some banks still act like it’s 2019.
Why?
That’s why it’s important to choose a savings account that works for you, not against your habits.
Not all savings accounts are created equal. Now that transfer limits aren’t an automatic concern, you can prioritize other features like:
Some savers are also turning to fintechs and neobanks that are natively built around flexible, modern money management. These tend to drop the old-school restrictions faster and offer more insight tools for digital-savvy users.
Ask these questions:
If your bank dances around the answers or sends you to fine print, you might want to look elsewhere.
For years, the Reg D limit on savings transfers was one of those low-key rules that tripped people up without warning. It punished those who actively managed their money—and rewarded passive savers who never touched their accounts.
Now that the rule is (mostly) gone, you’ve got more freedom to use your savings account as a financial tool, not just a holding pen.
Whether you’re juggling side hustles, optimizing a high-yield strategy, or just trying to make your money easier to manage month-to-month, this rule change could be the unsung hero of your personal finance routine.
