Article written by:
Karen Janota, AAP, BSACS, CUCE
Manager, Assurance & Business Advisory Services
On Friday, April 24, 2020, the Federal Reserve Board announced an interim final rule to amend Regulation D, removing the six-per-month limit on convenient transfers from the “savings deposit” definition.
Specifically, the interim final rule allows depository institutions to immediately suspend enforcement of the six-transfer limit and to allow consumers to make an unlimited number of convenient transfers and withdrawals from their savings deposits. “The amendments are intended to allow depository institution customers more convenient access to their funds and to simplify account administration for depository institutions,” stated the Fed.
Previously, once consumers reached the limits, they could only access funds through ATM or branch visits. The recent action that took place by the Federal Reserve Bank will make it easier for credit unions to give members access to their funds, which is vitally important as communities around the country deal with the impacts of the COVID-19 outbreak.