BANKING AFFAIRS

Detailed explanation-1: -Instead of limiting bank customers to six convenient transfers or withdrawals from a savings or money market account per month, Fed rules now allow for unlimited transfers or withdrawals.

Detailed explanation-2: -Banks historically limited the number of transactions customers can make each month in savings and money market accounts, the result of Regulation D, a Federal Reserve Board rule that limited withdrawals and transfers to six each statement cycle.

Detailed explanation-3: -Why does this six transfer limit exist? It exists because your account is considered a “savings deposit” and they’re subject to different rules. Why those rules exist has to do with the reserve requirements, or how much the bank needs to keep around in their vaults, on different accounts.

Detailed explanation-4: -What is Regulation D? Regulation D is a federal law that keeps consumers from making more than six withdrawals or transfers per month from a savings account or money market account. The rule is in place to help banks maintain reserve requirements.

Detailed explanation-5: -With a money market account, you’re typically limited to six withdrawals and transfers per statement, though some transactions, like in-person withdrawals, don’t count toward this limit.