Why is there a limit on the number of withdrawals I can make from my savings account?
There are laws determined by the Federal Reserve’s Board of Governors, called Reserve Requirements, which govern how much cash a financial institution must hold in reserve against the accounts at that institution. The portion of federal regulations that contain these rules is called Regulation D. Under Regulation D, the rules vary for transaction and non-transaction accounts. With non-transaction accounts, the account holder is limited to making no more than six “convenient” transfers or withdrawals per month. These “convenient” transfers include preauthorized automatic transfers, transfers and withdrawals requested by phone, fax or made online, checks written to third parties and debit card transactions. If a depositor tries to exceed the six-per-month transaction limit, the financial institution is required to refuse transfer privileges or convert the account into a transaction account. Less convenient transactions, however, are unlimited. This includes transactions made in person, by mail or at an ATM, and phone withdrawals requesting a check mailed to the account holder. For more information: https://www.sharoncu.com/scup/regulation-d-how-does-it-affect-me/.