On April 24, 2020, The Federal Reserve Board (FRB) announced an interim final rule to amend Regulation D (Reserve Requirements of Depository Institutions) to delete the six-per-month limit on convenient transfers from the “savings deposit” definition. The interim final rule allows depository institutions, including credit unions, to immediately suspend enforcement of the six-transfer limit and to allow their customers/members to make an unlimited number of convenient transfers and withdrawals from their savings account at a time when financial events associated with the COVID-19 pandemic have made such access more crucial.
What this means for you
Until we receive additional guidance from regulatory agencies, Franklin-Oil Region Credit Union will be eliminating the six-per-month savings account transfer limit. Additionally, we will be suspending any fees associated with previous Regulation D transaction limits. We are optimistic that the interim final rule will eventually become final and that the elimination of the limits and fees will become permanent. For a list of frequently asked questions, visit https://www.federalreserve.gov/supervisionreg/savings-deposits-frequently-asked-questions.htm.