Bank Regulation in The United States - Deposit Account Regulation - Withdrawal Limits and Reserve Requirements

Withdrawal Limits and Reserve Requirements

Further information: Regulation D (FRB)
  • Establishes reserve requirement guidelines
  • Regulates certain early withdrawals from certificate of deposit accounts
  • Defines what qualifies as DDA/NOW accounts. See Regulation Q for eligibility rules for interest-bearing checking accounts
  • Defines limitations on certain withdrawals on savings and money market accounts
    • Unlimited transfers or withdrawals if made in person, by ATM, by mail, or by messenger
    • In all other instances, there is a limit of six (6) transfers or withdrawals. No more than three (3) of these transactions may be made payable to a third party (by check, draft, point-of-sale, etc.)
    • Some banks will charge a fee with each excess transaction
    • Bank must close accounts where this transaction limit is constantly exceeded

Read more about this topic:  Bank Regulation In The United States, Deposit Account Regulation

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