Regulation “D”

Savings Withdrawals & Transfers Affected by Federal Regulation “D”

Federal Government Regulation “D” limits the number of savings withdrawals that can be made during a month. Among other things, these limits can prevent checks from clearing on your checking account because transfers are denied. Here is information on when these limits affect your account, plus five strategies to help manage them.

Federally Regulated Transactions

These transactions, in any combination, are limited to six per month:

  • Automatic Withdrawals from Savings
  • Voice Response Transfer from Savings
  • Online Banking Transfer from Savings
  • Telephone Transfer from Savings (i.e., talking to a Credit Union employee)
  • Automatic Savings Transfer to Checking

By federal regulation, each member is allowed any combination of six of the above transactions. After six per month, additional transactions may be rejected, which means a deposit to checking might be prevented, and that could cause overdraft fees to be assessed on checking.

This limit is set by the Federal Reserve Bank’s “Regulation D” (“Reg D”).The purpose of the regulation is to prevent people from using savings accounts like checking accounts. The Federal Reserve uses this regulation as one of its tools for monitoring the amount of money in circulation.

Non-Regulated Transactions

There are no limits on the number of the following transactions you can do:

  • Any ATM Transactions
  • Any In-Person Transactions
  • Any Mail Transactions
  • Any Night Deposit Transactions
  • Any Savings Transfer to Repay a Loan
  • Here are five strategies to help you manage your savings withdrawals and transfers, so you don’t run into surprises.

Do not authorize anyone to make automatic withdrawals from your savings account. Instead, set up the withdrawal from your checking account, which has unlimited automatic withdrawals.

  • Plan ahead and make one larger transfer instead of several small transfers. Each regulated transfer counts as one transaction, no matter the size.
  • Set up a checking overdraft line of credit (Anytime Access). Transfers from this account are not regulated.
  • Plan ahead to either stop in or mail in your transfer request. This may not be convenient to do, but these types of transfer are not limited by regulation.
  • Balance your checking account regularly. This should help you limit the number of regulated transfers you need to make from savings. It also helps you keep track of what’s happening in your checking account.
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