Regulation D Frequently Asked Questions
With few exceptions, the U.S. government limits the number of transactions you may do from a savings account to six per month without being present at a branch. The government enforces these limitations by way of the Federal Reserve Bank's Regulation D. This regulation applies to all banks and credit unions. 1st Financial Federal Credit Union enforces Reg. D.
Federal Reserve Board Regulation D
Federal Reserve Regulation D is not a new regulation. It was part of the International Banking Act of 1978. Regulation D imposes uniform reserve requirements on all depository institutions including commercial banks, savings banks, savings and loan associations, credit unions, and agencies or branches of foreign banks located in the United States.
We apologize for any inconvenience this requirement may cause. For more information on Regulation D, and the steps you'll need to take, please review the frequently asked questions below. If you need additional assistance, please contact the Member Services at 636-916-8300.
- What is Regulation D?
- What transactions are not affected by Regulation D?
- What are my options once an account has reached its Regulation D limit?
- If an account used for overdraft protection has reached its Regulation D limit, will overdraft requests be honored?
- I have authorized a merchant to automatically withdraw payments from my savings account or money market account; does this count against my monthly limit?
- How can I avoid hitting my limit each month?
1. What is Regulation D?
Federal Regulation D places a monthly limit on the number of transfers and/or withdrawals you may make from your savings accounts, club accounts, or money market accounts (MMAs) without your physical presence being required. Transfers affected by this regulation therefore include:
- Transfers made using Netbr@nch
- Transfers made using Telephone Teller
- Overdraft transfers (made automatically to cover insufficient funds in other accounts; see below)
- Transfers made by a member service representative on your behalf
- Pre-authorized, automatic, scheduled or recurring transfers (see below)
You are allowed six such transfers per month, per account.
2. What transactions are not affected by Regulation D?
- ATM transactions.
- Transfers made to 1st Financial Federal Credit Union loans
- Transactions done in person at a branch
- Transactions sent in by mail or Night Drop
3. What are my options once an account has reached its Regulation D limit?
You may make withdrawals and transfers in person, by mail, or at an ATM.
4. If an account used for overdraft protection has reached its Regulation D limit, will overdraft requests be honored?
No, if the overdraft protection account is a savings or club account. In that case, you will receive a notice by mail and incur an insufficient funds charge for every overdraft attempted beyond your monthly limit. However, if the overdraft protection account is a line of credit(which is not affected by Regulation D) the overdraft will complete normally.
5. I have authorized a merchant to automatically withdraw payments from my savings account or MMA; does this count against my monthly limit?
Yes, These payments (which you might know as "ACH" or "EFT" transactions) follow Regulation D limitations. Any withdrawals attempted beyond your monthly limit will not be honored, and you will receive a notice by mail and incur an insufficient funds charge. To avoid this situation, make automatic payments using something other than a savings account or MMA, such as a checking account. Contact the merchant to arrange this change, and be aware that your request could take more than a month to go into effect. Alternatively, consider using our free online bill pay service to automatically send payments to the merchant, rather than authorizing the merchant to automatically withdraw payments.
6. How can I avoid hitting Reg. D limitations each month?
Most members have this problem because they have their direct deposit or payroll deductions going to their savings account instead of a checking account. They have automatic payments such as health clubs or life insurance taken from savings instead of checking and they have to contact the credit union to have funds transferred to checking.
This causes them to hit the maximum, generally by mid-month. By changing these deposits to checking, and having auto payments taken from checking, most will not hit the limitation. If you don't have a checking account with us, open one and have deposits made to it and have automatic payments made from your checking account.