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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