Removing Barriers Blog

CUNA and League Advocacy efforts result in Fed suspending Reg D transfer limit
Posted April 24, 2020 by CUNA Advocacy

Earlier this morning, the Federal Reserve Board announced an interim final rule to amend Regulation D to delete the six-per-month limit on convenient transfers from the "savings deposit" definition. CUNA has urged the Federal Reserve to make this change for years, but recently increased its engagement on behalf of consumers during the COVID-19 pandemic.

“Today’s action by the federal reserve 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,” said CUNA President/CEO Jim Nussle. “We’ve long believed the threshold was arbitrary and unnecessary. We thank the Federal Reserve for making this critical change.” 

The interim final rule allows depository institutions immediately to suspend enforcement of the six transfer limit to allow their customers to make an unlimited number of convenient transfers and withdrawals from their savings deposits at a time when financial events associated with the coronavirus pandemic have made such access more urgent. There are no mandatory changes to deposit reporting associated with the amendments, and this change is effective when the rule is published in the Federal Register.