Can You Make Withdrawals From a Savings Account?

Savings accounts serve as a secure location for funds, designed to help individuals accumulate money and earn interest over time. While their primary purpose is saving rather than frequent spending, account holders can certainly withdraw funds when needed. Accessing money from a savings account is generally straightforward, though specific methods and associated rules can vary by financial institution.

Methods for Accessing Funds

Funds can be accessed in several ways. One common method is an in-person withdrawal at a bank branch. This requires a withdrawal slip and valid photo identification.

Another option is withdrawing cash from an Automated Teller Machine (ATM). This requires a debit or ATM card linked to the savings account and the correct Personal Identification Number (PIN). Daily ATM withdrawal limits apply.

Funds can also be transferred electronically from a savings account to a linked checking account. These transfers are often instant between accounts at the same bank and can be initiated through online banking or mobile applications. Once in a checking account, funds are available for everyday transactions. Some banks allow withdrawals via cashier’s checks, though a fee usually applies.

Common Withdrawal Rules and Restrictions

Banks impose various rules and restrictions on savings account withdrawals. Historically, federal Regulation D limited certain withdrawals to six per statement cycle. While suspended in 2020, many financial institutions maintain similar internal transaction limits, often six per month, for online, phone, or electronic transfers. Exceeding this can lead to fees, account conversion, or closure.

Banks also set daily or monthly dollar limits on withdrawals, particularly for ATM transactions. Common ATM daily limits range from $300 to $1,000, though some accounts allow up to $5,000. For larger in-person cash withdrawals, banks might require advance notice.

Some savings accounts require a minimum balance to avoid fees. If a withdrawal causes the account balance to fall below this threshold, it could trigger monthly service charges. Funds from recently deposited checks may be subject to a temporary hold, meaning they are not immediately available. These holds typically last two to seven business days for verification.

Fees Associated with Withdrawals

Withdrawals from a savings account can incur charges, depending on the transaction type and frequency. Exceeding a bank’s monthly transaction limit, even with federal Regulation D suspended, typically results in an “excessive withdrawal fee.” These fees range from $3 to $5 per transaction, though some institutions charge up to $10 or $25.

Using an out-of-network ATM often incurs two fees: one from your bank and a surcharge from the ATM owner. The average combined cost for out-of-network ATM withdrawals is around $4.77. These charges accumulate quickly if out-of-network ATMs are used frequently.

Maintaining a minimum balance is a common requirement, and failing to do so after a withdrawal can lead to monthly maintenance fees. These fees range from $5 to $15. For large transfers to other financial institutions, wire transfer fees may apply. Domestic outgoing wire transfers cost, on average, $25 to $30, while international outgoing transfers range from $45 to $65.