Why is this important? Several reasons and they may not really affect you. First, a savings account pays some interest and most checking accounts don't. Even if they do, by the time you buy checks if you have an account like most people where you pay for your checks, well, you are in the hole unless you have a ridiculous amount of money just sitting in a ultra-low interest checking account.
So you can actually see your balance increase if you have money in a savings account. It won't keep up with inflation, but if you can't make money or just break even, losing the least you can is still better than a poke in the eye and the other options.
Insurance companies and a growing number of other companies will draft your bill from your savings account now. That means you had a maximum of 6 bills you could pay a month directly from withdrawal from your savings account. If you used your 6 withdrawals for bills, transfers to your savings or any combination, you would have to physically go in to the bank and fill out a transfer for any withdrawals over 6. Now you don't.
Why did that have this rule in the first place? Well, without going into a lot of detail, it was supposed to make the banking system more stable and prevent the banks from having to keep more money on hand to keep from running out.
Why did they remove this rule now? The first reason is that the Federal Reserve hates checks, they even hate currency and anything they can do to get rid of checks and currency is a big thing for them. The Federal Reserve, in league with the Government in general and the IRS in particular want digital currency. Currency they can track and tax and take away and even turn off without the hardship and trouble of a court order, trial, due process or even a tax return.
The second reason is with the economy rolling backwards and unbelievable things happening to people financially, people couldn't get to their savings money electronically and banks didn't want people coming in physically because of the virus restrictions. There are a lot of bank branches that are just plain closed now.
The Federal Reserve is trying to create enough currency and inject it into the financial system that the stock market doesn't crash (again), that banks don't close and that interest rates for the government and their friends stay low. Every dollar you can take out of your savings account and put into circulation is another dollar they don't have to "print" toward that goal.
Besides, it would look bad if people needed currency for food and their bills, but couldn't get their own currency because of a rule and the Federal Reserve doesn't like to look bad.
With there being no limit now, at least imposed by the Federal Reserve, you may start seeing debit cards for savings accounts. Many debit cards already will work at ATM machines to access your savings.
Check with your bank for any rules, fees or restrictions they may have.
Best and be blest,
Scott Hogue CCFC, CCA