What is
Reg D?
The Federal
Reserve Board's Regulation D places limits on the number of withdrawals and
transfers from certain deposit accounts at depository institutions. It
defines the types and number of transactions that can be performed on
non-transaction accounts, such as savings, money market, and certificate
accounts.
This
regulation can prevent checks from clearing your account. Please take
a moment to review important information regarding these limits which may
affect your accounts.
How does
Reg D affect me?
In any given
month, you are limited to no more than six preauthorized, automatic or
telephone transfers from any of the account types listed above to any other
account or to a third party. No more than three of these six transfers can be
made by check, draft or debit card to a third party.
What
types of transactions count toward the six transfer limit?
Any
transfers made through the following methods:
What
types of transactions are NOT restricted?
For all of
your accounts there is is NO limit on the number of transactions you make in
person, by mail, or via an ATM. Loan or VISA payments, transfers from
your checking to other accounts are not restricted.
What
happens if I go over the limit?
If you
exceed the federally-mandated limits, some transactions you expect to occur
will not be processed, and some payments from your account may not be made.
Your accounts may be subject to closure and you may incur a fee. In many
cases, it is possible to re-structure your accounts so that the federal
regulations governing transaction limits do not restrict any payments from
your accounts.
What can I do to make sure I do not exceed the limit?
Here are
some suggestions:
-
Set up
pre-authorized withdrawals for bills and other payments to come out of your
checking account instead of your savings account
-
Make sure
that you have enough funds in your checking account to cover your monthly
expenses so that you don't have to transfer money from your savings account
-
Perform
transfers from ATMs or at teller windows
-
Make
deposits into your checking account initially, then transfer the money from
your checking to savings. There is no limit on the number of transfers
you can make from your checking account
If you have
any questions or concerns, please contact us.