What is Regulation D, and how does it relate to my funds transfers?
1. What is Regulation D?
Regulation D is a Federal Regulation which limits the number of transfers, withdrawals and third party payments that can be made on or from a regular share account. Transactions performed electronically or with the use or aid of an electronic device are subject to this limitation. Transactions made in person at the credit union office are not subject to the limitations. Electronic transactions are limited to 6 per month from a regular share account. These include telephone, automated clearing house (ACH), fax, data transmission, online/mobile banking, bill paying, automatic transfers, or any other arrangement by the credit union to pay a third party from the member’s account.
2. How does it affect me?
During any calendar month or statement cycle, you may not make more than six withdrawals or transfers from your Share or Money Market accounts to another account of yours or a third party by means of a pre-authorized or automatic transfer or telephonic order or instruction.
3. What if I reach the maximum number of transfers allowed? What happens then?
When the maximum number of transfers has been reached for the month, a one-time monthly fee of $25.00 will be charged to the member accounts that exceed the maximum limit of six (6) transactions per month. Continual violations of the Regulation D transaction limits for three (3) consecutive months will result in the removal of savings to checking overdraft privileges from their account. Finally, if Regulation D transaction limits continue to be abused, the savings account will be reclassified as a non-dividend bearing account and a request will be made via certified letter that the account be closed. If the account remains open, a $25.00 fee will be charged per transaction item exceeding six (6).