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VIEWpoint Issue 1 | 2023
2023 Compliance Trends: Staying Ahead in an Evolving Regulatory E...
2023 Tax Calendar
On March 15, 2020, the Federal Reserve Board (Fed) announced it is reducing the reserve requirement ratio for net transaction accounts to zero percent effective March 26, 2020. While there are no changes to deposit reporting, it does mean there is no longer any difference between savings deposits and transaction accounts for reserve requirements purposes. Financial institutions are not required to reclassify savings deposits as transaction accounts, but you are permitted to make the change if existing account agreements do not prohibit it. Remember, accounts classified as savings deposits are subject to the six convenient transfer limits in Regulation D. In light of the COVID-19 crisis, the Fed encourages financial institutions to work with consumers, and one way to do that is to permit more than six convenient transfers on their accounts. If a financial institution does so, it must make sure to report such accounts as transaction accounts.
This publication is distributed for informational purposes only, with the understanding that Doeren Mayhew is not rendering legal, accounting, or other professional opinions on specific facts for matters, and, accordingly, assumes no liability whatsoever in connection with its use. Should the reader have any questions regarding any of the news articles, it is recommended that a Doeren Mayhew representative be contacted.
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