There is no federal limit on how many times you can transfer from savings to checking. The Federal Reserve deleted its longtime six-transfer-per-month cap in April 2020, and it has not been reinstated. Your bank or credit union, though, is free to set its own monthly limit, and going over it can cost you.
What Changed in 2020
For decades, Regulation D limited certain outgoing savings transfers to six per month. On April 24, 2020, the Federal Reserve issued an interim final rule striking that cap from the definition of a “savings deposit.”1Federal 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 The current regulation defines a savings deposit as one from which 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.”2eCFR. 12 CFR 204.2 – Definitions
The rule permits banks to stop enforcing the old limit. It does not require them to.
Why Your Bank May Still Cap Transfers
Many banks and credit unions kept the six-transfer cap, or something like it, in their own account agreements. Savings accounts typically pay higher interest than checking accounts, and limiting withdrawals helps institutions predict cash flow, manage liquidity, and hold down the administrative cost of high-volume account activity.
Because policies now vary widely, the only reliable way to find your limit is to read your deposit account agreement. That contract lists the maximum number of monthly transfers, any fees for going over, and other restrictions. If you cannot find your copy, the bank’s website or customer service line has the same information.
Which Transfers Count Toward the Limit
Banks that still enforce a cap generally count these outgoing transactions:
- 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 to checking
- Overdraft protection pulls, when the bank draws from savings to cover a checking shortfall
Under the old federal rule, teller-window and ATM withdrawals were excluded from the six-transfer count. With the federal cap gone, each bank now sets its own policy on whether in-person and ATM transactions count. Some still exclude them; others apply the limit to every withdrawal. Check your terms.
Money Market Accounts and the Seven-Day Notice
Money market deposit accounts fall under the same “savings deposit” definition, and the 2020 amendment lists them by name and permits unlimited transfers and withdrawals from those accounts too.3Federal Register. Regulation D: Reserve Requirements of Depository Institutions Your bank can still impose its own monthly cap on a money market account through the deposit agreement.
One older provision the 2020 change did not touch: a bank retains the right to require seven days’ written notice before you withdraw from a savings account.2eCFR. 12 CFR 204.2 – Definitions Banks almost never invoke it in normal times. It exists mainly as a safeguard during periods of extreme financial stress.
What Happens if You Exceed Your Bank’s Limit
Excessive Transaction Fees
The most immediate consequence is a per-transaction fee for each transfer beyond the allowed number. These commonly fall in the range of a few dollars to $15 per excess transfer, with the exact amount in your account’s fee schedule. Some banks raise the fee with each additional violation in the same cycle.4Consumer Financial Protection Bureau. Why Am I Being Charged for Transactions in My Savings Account?
Account Conversion
If you repeatedly go over, your bank may convert your savings account into a checking account, which generally earns little or no interest. Under Regulation DD (Truth in Savings), the bank must give you notice at least 30 calendar days before the change takes effect whenever the change would reduce your interest rate or otherwise hurt you.5eCFR. 12 CFR Part 1030 – Truth in Savings (Regulation DD)
Account Closure
After repeated violations over several months, a bank may close the account. 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 opening a new account elsewhere difficult for up to five years.
How to Stay Within the Cap
- Keep enough in checking to cover routine bills and automatic payments so you rarely need to pull from savings mid-month.
- Make fewer, larger transfers. One $150 move beats three $50 moves.
- Use ATM or teller withdrawals if your bank still excludes them from the count.
- Track transfers against the billing cycle, especially as you approach the limit.
- Consider a bank or credit union that dropped its cap after 2020 if frequent transfers are part of your routine.
If You Think a Fee or Closure Was Improper
If 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 at consumerfinance.gov/complaint or by calling (855) 411-2372. Describe what happened, attach fee notices or account statements, explain what you have already done to resolve the issue with your bank, and state the outcome you consider fair.7Consumer Financial Protection Bureau. So, How Do I Submit a Complaint?