The Federal Reserve made a key change to the way Americans are allowed to access bank accounts as a result of on-going hardship from COVID-19 shutdowns and job loss. Americans can now access their money in savings an unlimited number of times. “Regulation D” limited savings account access to six per month prior to the change. The new rule is effective immediately. Banks have the option to decline to implement the Fed’s change if they so desire.
The idea here is to give customers easier and quicker access to their money during these trying times. Job loss and underemployment is causing a cash crunch for millions of Americans. Burning through savings may be the only option in a situation where income goes to zero. Especially if household income was high to begin with and a certain lifestyle was built upon said income.
The purpose of Regulation D before the amendment was to assist banks in maintaining liquidity and reserve requirements. Consumer discipline is obviously a factor here as well. One could easily make the argument that having unlimited access to a savings account makes it no different than a checking account. Constant movement of money in and out of a savings account would certainly make the earned interest on a statement look much… different.