WASHINGTON (Reuters) - The U.S. Federal Reserve announced Friday that banks can now allow account holders to make an unlimited number of withdrawals and transfers from their savings accounts. The central bank updated its rules to scrap the six-per-month limit that had previously existed for such accounts. The Fed said the move would help ensure people can access their funds “at a time when financial events associated with the coronavirus pandemic have made such access more urgent.” The Fed said it removed the limit because a recent policy shift had rendered it unnecessary. https://www.reuters.com/article/us-health-coronavirus-fed-savings/federal-reserve-scraps-transfer-limits-on-bank-savings-accounts-idUSKCN22627Z?feedType=RSS&feedName=businessNews&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+reuters/businessNews+(Business+News)
Conveying to the world (US citizens are not the only account holders) there are no (outright intentional) capital controls is a good thing. The underlying "reason" for the change and the longer-term implications (particularly for US citizens) is however quite problematic.
From what I remember when I opened my account, it's not that they lock it up, it's that they charge fees if you go over the limit. Although I didn't pay much attention because who dips into their savings more than 6 times per month? I don't even make that many withdrawals on my checking.
Which banks / credit unions are following through and allowing >6 withdrawals without fees ? Seems to me if they do that, you should move every dollar of your checking account to savings, and then setup overdraft protection. What I am missing ? Other than the fact the interest of savings is very low.
At a -3% inflation rate ...don't you know we have to all take risk just to keep up with inflation.. loss through inflation is extracted through people's savings....inflation benefits the gov at the expense of anyone saving their money under their bed....