Federal law limits most savings accounts to six transfers or withdrawals per month
The Regulation D limit is a federal rule that caps the number of times you can move money out of a savings account each month. For most savings accounts, that limit is six transactions. The rule applies to transfers to other accounts and withdrawals—whether you do them online, by phone, at an ATM, or in person at a branch.
The limit exists because savings accounts are meant to hold money, not to be used like checking accounts for frequent transactions. Banks are required to enforce this rule, though some have more lenient policies. If you exceed six transactions in a month, your bank can charge a fee, convert your account to a checking account, or close the account.
The rule changed in 2020 during the pandemic and has remained flexible since then. Some banks still enforce the six-transaction limit strictly; others have removed it entirely or raised it. What your bank allows depends on the account type and the bank's own policy.
Key Takeaways
- Federal Regulation D limits most savings accounts to six transfers or withdrawals per month, though this rule is no longer strictly enforced by regulators.
- Deposits into your savings account do not count toward the transaction limit—only money moving out counts.
- Different banks enforce the limit differently: some charge a fee for excess transactions, some convert your account, and some have removed the limit entirely.
- ATM withdrawals, online transfers, phone transfers, and in-person withdrawals all count as separate transactions toward your monthly limit.
- If you need to move money frequently, a checking account or money market account may be a better fit than a traditional savings account.
What counts as a transaction under Regulation D
A transaction is any time money leaves your savings account. This includes transfers to another account at the same bank, transfers to an account at a different bank, ATM withdrawals, and withdrawals at a teller window. Each one counts as one transaction, even if you do them all on the same day.
Deposits do not count. You can deposit money into your savings account as many times as you want without hitting the limit. Only outgoing money matters for the six-transaction rule.
Automatic payments and recurring transfers also count. If you have a monthly automatic transfer set up to move money from savings to checking, that counts as one transaction per month. If you have two automatic transfers, that is two transactions.
How banks enforce the limit today
The Federal Reserve stopped enforcing Regulation D in 2020 and has not reinstated the requirement. This means banks are no longer required to limit your transactions. However, many banks still do—either because their systems were built around the rule or because they want to discourage frequent withdrawals from savings accounts.
When a bank does enforce the limit, the consequences vary. Some charge a fee (usually $5 to $10) for each transaction over six. Others may downgrade your account to a checking account, which typically earns no interest. A few banks will close the account if you repeatedly exceed the limit.
The best way to know your bank's policy is to check your account agreement or call customer service. Many banks now list their transaction limits (or lack thereof) on their website under savings account details.
Banks that have removed or raised the limit
A growing number of banks have removed the six-transaction limit entirely or raised it significantly. Large banks like Chase, Bank of America, and Wells Fargo have relaxed or eliminated their limits. Many online banks, which operate with lower overhead, never enforced the limit at all.
Credit unions often have different rules than banks. Some credit unions enforce Regulation D strictly, while others have removed the limit. If you bank at a credit union, ask about their specific policy.
If frequent transactions are important to you, look for a bank that explicitly states it has no transaction limit on savings accounts. This information is usually in the account disclosures or on the bank's website.
What to do if you need more than six transactions per month
If your bank enforces the six-transaction limit and you regularly need more, you have several options. The simplest is to switch to a bank that does not enforce the limit. Many online banks and some brick-and-mortar banks have removed the restriction.
Another option is to use a money market account instead of a savings account. Money market accounts often come with a debit card or checkbook, which lets you access your money more freely. The trade-off is that interest rates on money market accounts are sometimes lower than on savings accounts, and they may have higher minimum balances.
If you need to move money frequently, a checking account might be the right tool. Checking accounts have no transaction limits and are designed for regular use. You can keep your long-term savings in a high-yield savings account and use a checking account for day-to-day access.
How to track your transactions
Most banks show your transaction count in your online account or mobile app. Some display it clearly on your account dashboard; others require you to look at your statement or contact customer service. If your bank enforces the limit, they should make it easy to see how many transactions you have used.
If you are unsure whether a specific action counts as a transaction, check your account agreement or ask your bank directly. Different types of transfers (internal versus external, online versus in-person) sometimes have different rules depending on the bank.
Keeping track is especially important if you are close to your limit. Once you hit six transactions, any additional ones may trigger a fee or other consequences. Setting a reminder on your phone or calendar can help you stay aware of your usage.
Frequently Asked Questions
Do deposits count toward the six-transaction limit?
No. Only money moving out of your savings account counts. You can deposit money as many times as you want without hitting the limit.
What happens if I go over six transactions in a month?
It depends on your bank. Some charge a fee per excess transaction, some convert your account to a checking account, and some do nothing because they no longer enforce the limit. Check your account agreement or call your bank to find out their policy.
Does a transfer between my own accounts at the same bank count as a transaction?
Yes. A transfer from your savings account to your checking account at the same bank counts as one transaction toward your limit.
Can I avoid the limit by using a different bank's ATM?
No. An ATM withdrawal from your savings account counts as a transaction regardless of which ATM you use. The limit applies to all withdrawals and transfers out of the account.
Are automatic transfers the same as manual transfers for the transaction limit?
Yes. An automatic transfer set up to move money from savings to checking counts as one transaction per occurrence, just like a manual transfer does.