Can you withdraw money from a savings account anytime?

If you or your child recently opened a savings account, you might be wondering: Can you withdraw money from a savings account anytime? In short, not always! Like most things in banking, there’s a little more nuance.

Let’s walk through what’s allowed, what’s smart, and what families should consider before making a withdrawal.

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Yes, withdrawals are allowed, but with some conditions

Even though Regulation D (yep, that’s a real thing) used to limit savings withdrawals to six per month, that rule was relaxed during the COVID-19 pandemic and has stayed flexible since. So banks can let you take money out of a savings account whenever, but that doesn’t mean they always do. Many banks still set their own rules, like limiting how many times you can withdraw each month.

If you go over the bank’s maximum number of withdrawals, you might get hit with a fee. In some cases, the bank might even reclassify your account as a checking account if it looks like you’re using it more for day-to-day spending than a place to save money. Every bank works a little differently, so it’s definitely worth checking their policies so you know what to expect.

Savings accounts are meant to help you save your money. So the rules aren’t there to make things harder, but to encourage habits that actually stick!

A chance to build real-life money skills

If your kids are just getting the hang of managing their own money, withdrawal limits can actually be a great way to start a bigger conversation about the difference between saving up for something and spending the money, just because it’s there. AKA wants vs. needs. 

Maybe your child is working toward a new bike or helping pay for a school trip. Keeping that money tucked away in savings makes it a little harder to dip into, and that’s a good thing. It helps them get used to waiting (delayed gratification!), planning, and making more thoughtful choices.

When it makes sense to take money out of savings

Of course, savings doesn’t mean never using the money you set aside. Sometimes, you reach your savings goal and you're ready to use the money. Or, you might have an unexpected need for cash, and a withdrawal just makes sense. 

If that happens, pause and think it through. How badly do you need the money, and what impact could it have on your future money goals? The more thoughtful you are about when and why to withdraw from your savings account, the better off you will be long term. 

So, can you withdraw money from a savings account anytime? 

Yes, but checking your bank’s policies is a good first step. And if you’re using a family money app like Greenlight, taking advantage of tools like savings goals and parent-paid interest can make it easier for kids to stay on track.

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