Federal limits on savings account withdrawals
The Federal Reserve used to cap savings account withdrawals at six per month, but that rule ended in April 2020. Today there is no federal limit on how many times you can withdraw money from a savings account. You can make as many withdrawals as you want.
However, your bank can set its own rules. Many banks still treat savings accounts differently from checking accounts and may charge a fee if you exceed a certain number of withdrawals in a month—typically six to ten. Some banks charge nothing at all. The key is that the limit comes from your bank's policy, not from federal law.
Transfers between your own accounts at the same bank usually do not count toward withdrawal limits, even though money leaves the savings account. Transfers to accounts at other banks may or may not count, depending on your bank's rules. Withdrawals at an ATM, in-person at a teller, and online transfers all typically count as separate transactions.
Key Takeaways
- The federal six-transaction limit on savings accounts ended in 2020, so there is no legal cap on how many withdrawals you can make.
- Your bank may still charge a fee if you exceed their internal limit, which is often six to ten withdrawals per month.
- Transfers between your own accounts at the same bank usually do not count as withdrawals under most bank policies.
- ATM withdrawals, teller withdrawals, and online transfers all count as separate transactions toward your bank's limit.
- Checking your bank's account agreement or calling customer service will tell you the exact rules for your account.
How banks define a transaction
Banks count transactions differently depending on the type of movement. A withdrawal is money you take out and do not put back into the same bank. This includes cash from an ATM, money a teller gives you, and transfers to another bank. Each one counts as a separate transaction.
A transfer between two accounts you own at the same bank may or may not count, depending on the bank. Some banks count internal transfers toward the limit; others do not. A few banks count transfers only if they go to a different bank.
Deposits do not count toward withdrawal limits. You can deposit money as many times as you want without hitting any cap. Debit card purchases from a savings account (if your bank allows them) may or may not count as transactions—ask your bank directly.
What happens if you exceed your bank's limit
If you go over your bank's withdrawal limit, the most common result is a fee. This fee is usually between $5 and $25 per excess transaction, though it varies by bank. Some banks charge a flat fee for the month if you exceed the limit at all; others charge per transaction over the cap.
A few banks will simply refuse the transaction and tell you that you have hit your limit for the month. This is rare but does happen. In that case, you would need to wait until the next month to make another withdrawal, or move the money to a checking account instead.
Repeated excess withdrawals may also trigger a review of your account. Banks sometimes convert savings accounts to checking accounts if the account is used like a checking account—meaning frequent withdrawals. This is not a penalty, but it changes the terms of your account.
Checking your bank's specific rules
Your bank's withdrawal limit is written in the account agreement you received when you opened the account. You can find this document online through your bank's website, usually under "Account Agreements" or "Disclosures." Search for the word "transaction" or "withdrawal" to find the relevant section quickly.
If you cannot find the agreement online, call your bank's customer service line. They can tell you the exact limit for your account type in under a minute. Ask specifically whether internal transfers count, whether ATM withdrawals count the same as teller withdrawals, and what the fee is for going over.
Different account types at the same bank may have different limits. A money market savings account might allow more withdrawals than a regular savings account. A high-yield savings account might have no limit at all. Check the terms for your specific account, not just the bank's general savings account rules.
When the limit does not matter
If you rarely withdraw money from your savings account, the limit is irrelevant. Most people use savings accounts to hold money, not to move it around. The limit only affects you if you are making more than six to ten withdrawals per month.
If you need to move money frequently, a checking account is a better choice. Checking accounts have no withdrawal limits and are designed for regular transactions. You can keep your savings in the savings account and transfer money to checking when you need it, which usually does not count as a withdrawal.
Some banks offer money market accounts or sweep accounts that combine features of both. These accounts may allow unlimited withdrawals without fees. If frequent access to your money is important to you, ask your bank whether these alternatives exist and what the interest rate is on each.
How to track your transactions
Most banks show your transaction count in your online account dashboard or mobile app. You can usually see how many withdrawals you have made in the current month and how many you have left before hitting the limit. This updates in real time or within a few hours of each transaction.
If your bank does not show this information online, you can count transactions yourself by looking at your statement. Your monthly statement lists every withdrawal, transfer, and deposit. Count the withdrawals and transfers that your bank counts toward the limit, and compare that number to your bank's cap.
Set a reminder on your phone or calendar if you are close to your limit. This takes 30 seconds and prevents surprise fees. Some banks also send an alert when you are near the limit, though not all do—check your notification settings in your account.
Frequently Asked Questions
Do transfers to another bank count as a withdrawal?
Usually yes. Transfers to accounts at other banks are almost always counted as withdrawals under bank policies. Transfers between two accounts you own at the same bank may or may not count—this varies by bank. Check your account agreement or call customer service to be sure.
Can I move money to my checking account at the same bank without hitting the limit?
Most banks do not count internal transfers toward the withdrawal limit, but some do. The safest approach is to ask your bank directly. If internal transfers do not count, you can move money to checking as often as you want without fees.
What if I need to withdraw more than the limit allows?
You can pay the fee for excess withdrawals, or you can wait until the next month. You can also move the money to a checking account, which has no withdrawal limit. Some banks will waive one or two excess fees per year if you call and ask, especially if you have been a customer for a long time.
Does a debit card withdrawal from savings count?
Only if your bank issues a debit card tied to your savings account, which is uncommon. Most savings accounts do not have debit cards. If yours does, check your account agreement to see whether debit card purchases count as transactions toward the limit.
Can my bank change the withdrawal limit without telling me?
Banks must notify you of changes to account terms, usually by mail or email. They typically give you 30 days' notice before the change takes effect. If you think your limit has changed, check your latest account agreement or call customer service to confirm.