Finally…

The Federal Reserve has eliminated the archaic Regulation D rules limiting transfers and withdrawals from savings accounts to 6 per month in total (unless conducted in person)! Oh yeah, and just maybe I’m back blogging. I’ve got lots to catch you all up on, but let’s stick to the great news that dragged me out of my blogging hiatus.

As you may recall, I’ve been ranting about the idiocy of the Reg D rules for almost a decade. It only took a global pandemic to get them to remove them. Technically, this is only an “interim final rule“, but I can’t see us going backwards from here.

I long ago reworked my banking accounts so I could work around the rules to move money to the right places. So, what are the implications for the common man seeking to optimize his personal finance?

  1. One less fee for the big banks to hit you with. Previously, if you exceeded the 6 transfers in a month, they could and would hit you with Regulation D fees for the violation. My own bank only warned me about a dozen times through a form letter, but it was still a bit unnerving. No more!
  2. Why have a checking account? Most automatic withdrawals can be made from a savings account so just set them all up to come out of savings. That allows you to focus the bulk of your cash in a higher interest place. And, let’s you centralize in a single account if you wish.

Regarding #2, I know not everyone is on board with the cash-less and check-less society that we are headed towards, but that trend is not going to stop. In fact, who wants to touch your corona-contaminated funds now?

Anyway, happy days are here (in this small way)! Celebrate the end of Regulation D, and maybe you’ll hear from me again soon…