Federal Register: Federal Reserve Board Eliminates Transfer Limits on Savings Deposits

A Federal Reserve Board ("FRB") interim final rule to simplify reserve requirements by temporarily eliminating transfer limits on savings deposits was published in the Federal Register. The rule is effective immediately and comments must be submitted by June 29, 2020.

As previously covered, the FRB is revising the "savings deposit" definition under FRB Regulation D ("Reserve Requirements of Depository Institutions") by eliminating the limit on customers' transfers from their savings deposit accounts from a maximum of six transfers per month. The FRB noted that the revision to Regulation D has no effect on deposit-reporting requirements.