Regulation D Information
This regulation only affects Savings Accounts and Money Market Accounts. Checking accounts are transaction accounts and are not affected by this regulation.
What is Regulation D?
Federal Regulation D places a monthly limit on the number of transfers a member may make from a Savings Account or Money Market Account without a physical presence being required.
- Transfers affected by this regulation include:
- Transfers made using Online Banking
- Transfers made using Telephone Banking
- Overdraft transfers (made automatically to cover insufficient funds in other accounts)
- Telephone transfers made by a Member Service Representative on your behalf
- Pre-authorized, automatic scheduled or recurring transfers
Members are allowed six such transfers per month, per account
What transactions are not affected by Regulation D
- ATM transactions
- Transfers made to Bay Cities Credit Union Loans
- Transactions done in person at the Credit Union or a Shared Branch
- Transactions sent in by mail with an original signature
What are the options once the account has reached its Regulation D limit?
- The member may complete withdrawals and transfers in person, by mail, or at an ATM.
If an account used for Overdraft Protection has reached its Regulation D limit, will overdraft request be honored?
- No, if the Overdraft Protection account is a Savings Account or MMA. In that case, the member will receive a notice by mail and incur an Insufficient Funds charge for every overdraft attempted beyond the monthly limit. However, if the Overdraft Protection account is a Line-of-Credit loan (which is not affected by Regulation D) the overdraft will complete normally.
If the member has authorized a merchant to automatically withdraw payments from the Savings Account or MMA; do theses count against the monthly limit?
- Yes. These payments (which might be known as “ACH” or “EFT” transactions) follow Regulation D limitations. Any withdrawals attempted beyond the monthly limit will not be honored, and the member will receive a notice by mail and incur an Insufficient Funds charge. To avoid this situation, the member should make automatic payments using something other than a Savings Account or MMA, such as a checking account.
To avoid exceeding Regulation D limits on non-transaction accounts:
- Make recurring electronic payments from your checking account instead of your savings.
- Keep sufficient balances in your checking account to avoid overdrafts.
- Use a line of credit (e.g., Overdraft line of credit, Visa, Signature line of credit) for overdraft protection instead of a savings account.
If you have any questions please contact Member Services.
FAQ
Regulation D Frequently Asked Questions
Q: What is Regulation D?
A: Federal Regulation D places a monthly limit on the number of transfers you may make from your Savings Accounts or Money Market Accounts without your physical presence being required. Transfers affected by this regulation therefore include:
- Transfers made using Online Banking
- Transfers made using Telephone Banking
- Overdraft transfers (made automatically to cover insufficient funds in other accounts)
- Transfers made by a Member Service Representative on your behalf
- Pre-authorized, automatic, scheduled or recurring transfers
You are allowed six such transfers per month, per account.
Q: If I have reached my Regulation D limit and still need to transfer fund, how may I do that?
A: You may perform unlimited transfers in person, by mail and by ATM.
Q: If I have three Savings accounts at the Credit Union, does the six transaction limit apply to each account? Are transfers aggregated from all three accounts in determining the six transaction limit?
A: The six transaction limit applies to each one provided the accounts were not established for the sole purpose of avoiding Regulation D compliance.
Q: Does Regulation D apply if I arrange for automatic debit withdrawals directly with a third party to pay for phone service, newspaper delivery, cable, etc.?
A: If you arrange for automatic withdrawals from your Savings for a utility or subscription service, etc., these transactions are impacted by Regulation D. To avoid this, please set up all automatic withdrawals to come out of your checking. Or, take advantage of the online Bill Pay service to schedule the payments from your checking account.
Q: Does Regulation D apply to the use of Visa Check Cards at gas stations, grocery stores, restaurants, and the like?
A: When you use your Visa Check Card for a point of sale transaction at a gas station or retailer, the funds are debited from your checking account, which means that the transaction is not subject to Regulation D.
Q: Will I be charged a fee for going over my limit of six transactions per month?
A: Yes, the credit union will assess a $20 Excessive Transaction Fee for each transaction that exceeds the transaction limits. This fee will be assessed regardless of whether the credit union pays the transfer or returns the transfer unpaid.
Q: If an account used for Overdraft Protection has reached its Regulation D limit, will overdraft requests be honored?
A: No, if the Overdraft Protection account is a Savings Account or Money Market Account. In that case, you will receive a notice by mail and incur an Excessive Transaction Charge for every overdraft attempted beyond your monthly limit. However, if the Overdraft Protection account is a Line-of-Credit loan (which is not affected by Regulation D) the overdraft will complete normally.
ADDITIONAL TIPS
- Plan ahead and make one large transfer instead of several small transfers. Each Regulation D transfer counts as one transaction, no matter what the amount. You may utilize an ATM to transfer funds between your accounts to avoid Regulation D.
- Consider visiting a branch office (including a shared branch office), using an ATM or mailing your transfer request. These transfers are not limited.
- Have your Direct Deposit sent to your checking account. You may transfer excess funds to your Savings without limit.
- Open an Overdraft Line-of-Credit loan to be used to transfer funds to your checking account in the event of insufficient funds.
For more information please visit https://www.fdic.gov/regulations/laws/rules/7500-500.html
