How Federal Regulation D Effects Your Deposit Accounts

The Federal Reserve Board’s Regulation D impacts the number of transactions you are allowed to perform on your savings deposit accounts. The term "savings deposit" includes both savings accounts and MMDAs. Regulation D affects you by limiting the number of certain withdrawals and transfers that may be made from your savings or money market accounts within a calendar month or four week statement cycle.

A depositor may make no more than 6 covered transfers or withdrawals per calendar month or statement cycle. An excess transaction fee will be charged for each item exceeding the 6 allowed transactions.

The following transactions are Covered and limited to a total of six per monthly statement cycle:

• Transfers or withdrawals made to another account of the same depositor at the same bank if made by preauthorized transfer, automatic transfer, by telelphone, by fax, or with the bank's home or Internet banking service
• Transfers or withdrawals to a third party (or to an account of the customer at another bank), if made by preauthorized transfer, automatic transfer, by telephone, by fax, or with the bank's home or Internet banking service.
• Transfers to a third party (or to an account of the customer at another bank), if made by check, draft, debit card, or similar order made by the depositor and payable to third parties.

The following transactions are Non-Covered and have no limit:

• Transfers from one account of the depositor to another account of the same depositor if made in person, by mail or through an ATM.
• Transfers for the purpose of repaying loans and associated expenses at the same bank.
• Withdrawals from the account if made in person, by mail, messenger or ATM.
• Withdrawals made by telephone via check mailed to the depositor
• Transfers into the account

Steps you can take to avoid exceeding Regulation D limits:

• Setup your recurring payments using your checking account instead of your savings or money market account.
• Perform transfers in person, by mail, messenger or ATM.

If you exceed the transaction limitation, you will be informed by mail and an excess transaction fee will be assessed for each item that exceeds the transaction limitation.