Regulation D – Share Savings Account Transaction Limits & Information
Federal Regulation D Overview
Federal Regulation D establishes the monetary reserve amount that financial institutions are required to maintain at the Federal Reserve Bank. The amount to be held is determined by the amount and mix of its deposits. Deposits are categorized under two general account types, transaction account and non-transaction account:
- Regulation D defines a transaction account as one that allows unlimited third-party transfers and does not impose early withdrawal penalties. Bay Cities Checking Accounts are transaction accounts.
- Regulation D identifies all other accounts as non-transaction accounts. This category includes Bay Cities Regular Savings Accounts, Youth Savings Accounts, Christmas Club Accounts, Money Market Savings Accounts, and Certificate Accounts. The regulation does not permit more than six electronic withdrawals or transfers per calendar month for these accounts.
LIMITED Electronic Withdrawals for Non-Transaction Accounts:
- Automatic transfers to other accounts (STS)
- Preauthorized payments to a third party (ACH withdrawals)
- Overdraft transfers
- Point of Service (POS) transactions
- Online Banking transfers
UNLIMITED Electronic Withdrawals for Non-Transaction Accounts:
- Withdrawals done in person at one of our service center locations
- Transfers done in person at one of our service center locations
- Cash withdrawals at an automated teller machine (ATM)
- Transfer requests made at an ATM
- Withdrawals (made payable to “self”) using 24/7 Bayline
- Withdrawals (made payable to “self”) requested by phone through a Member Service Representative
- Automatic loan payments made on a Bay Cities loan
- Withdrawals requested by mail
- Transfers done over the phone with a Member Service Representative
To avoid exceeding Regulation D limits on non-transaction accounts:
- Make recurring electronic payments from your checking account instead of your savings.
- Keep sufficient balances in your checking account to avoid overdrafts.
- Use a line of credit (e.g., Overdraft line of credit, Visa, Signature line of credit) for overdraft protection instead of a savings account.
If you have any questions please contact Member Services.
Regulation D Frequently Asked Questions
What is Regulation D?
The Reserve Requirements for Depository Institutions (12 C.F.R. 204, Regulation D) is a Federal Reserve Board regulation that limits the number of preauthorized withdrawals and transfers from a savings account or money market account. The regulation applies to all United States banking institutions offering such accounts. In consumer banking, “Regulation D” or “Reg D” often refers to §204.2(d)(2) of the regulation, which places a limit of six withdrawals or outgoing transfers per month from savings or money market accounts via several transaction methods.
Is this something new?
Though this has been an existing regulation for some time, as of July 1st 2016, we will begin sending notifications to those members’ Share Accounts that exceed the transaction limit.
What will happen if I exceed the six transactions limit in one month?
If you exceed these transfer limitations in any month, we may return the transfer unpaid, and/or assess a fee.
What transactions are limited under Regulation D?
Automatic transfers to other accounts (STS)
Preauthorized payments to a third party (ACH withdrawals)
Point of Service (POS) transactions
Online Banking transfers
What transactions are not limited under Regulation D?
Withdrawals done in person at one of our service center locations
Transfers done in person at one of our service center locations
Cash withdrawals at an automated teller machine (ATM)
Transfer requests made at an ATM
Withdrawals (made payable to “self”) using 24/7 Bayline
Withdrawals (made payable to “self”) requested by phone through a Member Service Representative
Automatic loan payments made on a Bay Cities loan
Withdrawals requested by mail
Transfers done over the phone with a Member Service Representative
Are deposits limited under Regulation D?
The number of deposits or incoming transfers into savings or money market accounts is not limited.
For more information please visit https://www.fdic.gov/regulations/laws/rules/7500-500.html