There is no federal cap on how many times you can transfer money from savings to checking. The Federal Reserve removed the old six-per-month limit in April 2020, and it has not come back. Your bank, though, may still enforce its own monthly limit under your account agreement, and going over can cost you.
Your Bank’s Limit Is What Matters Now
The Federal Reserve’s April 24, 2020 interim final rule deleted the six-transfer cap from the definition of a savings deposit. The regulation now says a depositor may make transfers and withdrawals “regardless of the number of such transfers and withdrawals or the manner in which such transfers and withdrawals are made.”1eCFR. 12 CFR 204.2 – Definitions The change permits banks to stop enforcing the old limit, but it does not require them to.2Federal Reserve. Federal Reserve Board Announces Interim Final Rule to Delete the Six-Per-Month Limit on Convenient Transfers From the Savings Deposit Definition in Regulation D
Because it is optional, policies now vary. Some banks and credit unions dropped the cap entirely. Others kept the old six-transfer rule, and some set a different number. The only reliable way to find out where you stand is to read your deposit account agreement, which lists your monthly transfer maximum and any fees that apply. If you cannot find the document, your bank’s website or a call to customer service will tell you.
The rule applies the same way to money market deposit accounts, which fall under the same “savings deposit” definition.3Federal Register. Regulation D: Reserve Requirements of Depository Institutions
Which Transfers Count Toward a Bank’s Limit
If your bank still caps transfers, these outgoing transactions typically count toward the monthly total:
- Online and mobile transfers from savings to checking or to an outside account
- Phone transfers, whether through a representative or an automated system
- Automatic recurring transfers, such as a monthly sweep into checking
- Overdraft protection pulls, when the bank draws from savings to cover a checking shortfall
Under the old federal rule, withdrawals made in person at a teller window or at an ATM were excluded from the six-transfer count. Now that the federal cap is gone, each bank sets its own policy on those in-person transactions. Some still exclude them, others count every withdrawal regardless of channel. Check your terms.
What Happens If You Go Over
Excessive Transaction Fees
The most immediate consequence is a per-transaction fee for each transfer beyond the allowed number. Amounts vary by institution but commonly run from a few dollars to $15 per excess transfer, with the exact figure laid out in your account’s fee schedule. Some banks increase the fee for each additional violation in the same cycle.4Consumer Financial Protection Bureau. Why Am I Being Charged for Transactions in My Savings Account?
Conversion to a Checking Account
If you keep exceeding the limit, your bank may convert your savings account into a checking account, which generally pays little or no interest. Under Regulation DD (Truth in Savings), the bank must give you at least 30 calendar days’ notice before a change that would reduce your interest rate or otherwise disadvantage you.5eCFR. 12 CFR Part 1030 – Truth in Savings (Regulation DD)
Account Closure
Repeated violations over several months can lead to the account being closed outright. A forced closure can be reported to ChexSystems, a consumer-reporting agency that tracks banking history.6ChexSystems. ChexSystems Frequently Asked Questions A negative record there can make it hard to open a new bank account elsewhere for up to five years.
How to Stay Under the Limit
- Keep enough in checking to cover routine spending, bills, and automatic payments so you rarely need to pull from savings mid-month.
- Make fewer, larger transfers. Instead of moving $50 three times, move $150 once at the start of the month.
- Use teller or ATM withdrawals if your bank excludes them from the cap.
- Track how many transfers you have made in the billing cycle, especially as you get close to the maximum.
- Shop for a bank or credit union that removed its cap after the 2020 rule change if frequent transfers are part of your routine.
One Rule the 2020 Change Did Not Touch
Regulation D still allows a bank to require seven days’ written notice before releasing a withdrawal from a savings account.1eCFR. 12 CFR 204.2 – Definitions Banks almost never invoke this right in ordinary conditions. It exists mainly as a safeguard during periods of severe financial stress, such as a bank run, but the provision is in your account contract, so it is worth knowing about.
When to File a Complaint
If you believe your bank charged excessive transaction fees without proper disclosure, or converted or closed your account without the required 30-day notice, you can file a complaint with the Consumer Financial Protection Bureau. Submit online at consumerfinance.gov/complaint or call (855) 411-2372. Describe what happened, attach documents such as fee notices or statements, explain what you have already done to resolve the issue with your bank, and say what outcome you consider fair.7Consumer Financial Protection Bureau. So, How Do I Submit a Complaint?