Federal Regulation D (6 Transfers)

[pcgumshoe]

What is the name of your state? FL

I've only briefly read Regulation D. I did so because I bank with two different banks and have 7 accounts between them.

At one bank, I have a hi yield savings account and was aware that Regulation D did apply. The closest branch is over 4.5 hours away, but I plan on moving back to their region in the next year or so. I keep the accounts for the relationship.

Basically, Regulation D states that you can't transfer money from a savings account to a checking account (or account where payments are made to third parties - remember I'm paraphrasing here) more than 6 times.

Now, at another bank (which is a credit union and only local to where I live now), I have a simple savings account with no limits on how many times I may deposit or transfer money but I must maintain a minimum balance of $5. I can't access that minimum balance ever (yes it was FIVE dollars). Other than that, I'm free to deposit and withdraw as I see fit.

I opened a checking account at this bank two months ago because I wanted to be able to deposit cash in this bank and pay bills via bill pay online. My savings account at this bank is where I have my Social Security Deposited automatically.

Here's my question: Wouldn't the second bank NOT be controlled by regulation D?

It was my understanding that IF the bank limited the amount of transactions (because of some special benefit such as Hi Yield interest like a money market or something) then Regulation D would apply. However, on a SIMPLE savings account where I can come and go as a please, it wouldn't apply. I'm sure I'm wrong some where...

I went to another bank today (locally) and asked if I had a savings and a checking with them if I would be limited on the amounts of transfers I could make from one account to the other, specifically the Savings to checking. They said there was no limit.

Beyond the obvious (I'm coo coo) is there something I'm missing? Oh, and on the first account, I've made more than six transfers with a nasty note saying, "You can't transfer more than six times... if you continue, we will have to put you into another savings option."

 

[Debt Guy]

Either the CU counts differently or a specific transaction was on the exempt list and thus did not count towards the limit. Read it again and maybe you can figure it out.

1. What is Regulation D?
Federal Regulation D places a monthly limit on the number of transfers you may make from your Savings Accounts or Money Market Accounts (MMAs) without your physical presence being required. Transfers affected by this regulation therefore include:

Transfers made using Internet Banking
Transfers made using Telephone Banking
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, but only three of those may be made by check (a check counts against the month in which it clears, not when it was written).

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2. What transactions are not affected by Regulation D?


ATM transactions.
Transfers made to UFCU loans.
Transactions done in person at a branch (including shared branches).
Transactions sent in by mail, Express Drop, or Night Drop with an original signature
UFCU Bill Pay (which uses funds from your checking account)

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3. What are my options once an account has reached its Regulation D limit?
You may complete withdrawals and transfers in person, by mail, or at an ATM.

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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 Account or MMA. In that case, you will receive a notice by mail and incur an Insufficient Funds change for every overdraft attempted beyond your monthly limit. However, if the Overdraft Protection account is a Line-Of-Credit loan (which is not affected by Regulation D) the overdraft will complete normally. To apply for a Line-of Credit loan, apply online or contact us.

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5. I have authorized a merchant to automatically withdraw payments from my Savings Account or MMA; do these 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 change. 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 UFCU Bill Pay to automatically send payments to the merchant, rather than authorizing the merchant to automatically withdraw payments.​