Share Savings Transfer Limits
Federal Regulation D
Regulation D is a federal regulation that places certain limits on the number of transfers or withdrawals members can make from their share savings accounts. It affects all share savings, Clubs and money market account types. Regulation D allows for up to a maximum of six (6) withdrawals, overdraft protection transfers, electronic funds transfers/automatic withdrawals (EFT/ACH), debit card transactions, online banking, telephone or facsimile transfers per month.
An unlimited number of withdrawals or transfers are permitted when:
- Made in person at the credit union
- Made by a mailed letter request
- Made using an ATM
- Made by the member to pay a loan the member has with the credit union
- Made from a Telco Credit Union checking account
Please Note: Federal Reserve Regulation D is a directive of the Federal Government, not of Telco Credit Union, and applies to all financial institutions.
Which transactions count towards the limit?
| Transaction | Limited to 6 per month* | Unlimited |
|---|---|---|
| Transfer or withdrawal via pre-authorized debit (ACH/EFT) | X | |
| Overdraft transfer from Savings to Checking | X | |
| Transfer or withdrawal from Savings to another deposit account using Online Banking or Teller Phone | X | |
| Transfer or withdrawal via fax | X | |
| Checks from Member to a third party via Money Market account | X | |
| Debit Card Point-of-Sale (POS) transactions** | X | |
| Transfers from Savings made with a phone representative | X | |
| Transfer or withdrawal made in person | X | |
| ATM withdrawal or transfer | X | |
| Automatic, Online Banking or Teller Phone loan payment to a Telco Credit Union loan (does not include loan payments to other Financial Institutions) | X | |
| Transfer or withdrawal to member via mail request | X | |
| Deposit funds to Savings | X |
* Please note that any combination of these transaction types will count toward the maximum of 6 total transactions per month, per account.
** Telco Credit Union Bill Pay and Debit Card POS default to checking.
Frequently Asked Questions
What if my account has reached its Regulation D limit?
Additional withdrawals or transfers can be made in person, by mail, or at an ATM and not impact your Regulation D limit. However, transaction requests that count towards the Regulation D limit that occur after the limit is reached, will not be allowed and will be returned as unpaid.
If an account used for Overdraft Protection has reached its Regulation D limit, will overdraft requests be honored?
If the account used for overdrafts is a Savings, Club, or Money Market account, the request will not be honored. In that case, the item will be returned as un-paid. If the account used for overdrafts is part of our Courtesy Pay Program, Regulation D does not apply and your overdraft requests will be honored.
Why did I receive an Excessive Transaction Notice?
You have exceeded the transaction limits allowed for this account type. The same federal regulation which imposes the transaction limitations requires us to close or convert accounts exceeding the limits to a more suitable account product.
If I have authorized a merchant to automatically withdraw payments from my Savings Account, do these count against my monthly limit?
Yes. These payments (also known as ACH or EFT transactions) are subject to Regulation D limitations. Any withdrawals attempted beyond your monthly limit will not be honored. To avoid this situation, consider contacting the merchant to have the automatic payment made from your checking account.
Tips to avoid Regulation D Limits:
- Set up your pre-authorized payments or automatic withdrawals to be taken out of your checking account, which is not subject to Regulation D.
- Use Telco Credit Union online banking or Teller Phone to monitor your accounts frequently to plan your transfers and control the movement of your money.
- Limit transfers from your savings by making planned transfers in larger amounts instead of several smaller transfers.
- Use an ATM to transfer funds within your account.
Regulation D, also known as the Reserve Requirements of Depository Institutions, is a federal regulation that limits automated withdrawals from non-transactional accounts. It ensures that financial institutions maintain adequate reserves for the funds on deposit. For more information about this and other regulations, please visit the Federal Reserve web site.
For questions not addressed here regarding how your Telco Credit Union account is impacted by Regulation D, please contact us at (252) 823-0119.