What happens if you transfer money more than 6 times?
This means you could get charged an excessive withdrawal fee—or risk having your account closed—if you make more than six outgoing transactions a month. For this reason, it's important to review your savings account disclosure or call your bank to see what limits and fees may apply.
Why is there a limit on bank transfers?
Banks and financial institutions have regulations in place to prevent money laundering and other fraudulent activities, so there are typically limits on the amount of money that can be transferred.
Why only 6 withdrawals from savings?
The Fed's Regulation D defined savings deposits, in part, as those limited to six convenient withdrawals monthly. This prevented banks from classifying transactions accounts as savings deposits in order to potentially lower the amount of reserves they were required to keep on deposit with the Fed.
Are savings accounts still limited to 6 transactions?
Reg. D also restricted the frequency of certain types of withdrawals and transfers you could make from a savings deposit account during a statement cycle. Banks no longer have to limit the number of certain withdrawals from a savings deposit account to six, but most do still restrict withdrawals on these accounts.