Regulation D Limitations

What are they? And how do they affect your deposit accounts?

Federal regulations require Financial Institutions to closely monitor withdrawals made from a Savings or Money Market deposit account. As non-transactional accounts, Savings and Money Markets must adhere to the Federal Reserve Bank's Regulation D, which stipulates that no more than a total of six (6) transfers or preauthorized withdrawals may be made from each account to another account or to a third party in any month.

The following list identifies which types of transactions are included in the transaction limitations and which are unlimited:

Transactions Limited to a Total of Six Transfers per Month

  • Automatic transfers to other accounts
  • Preauthorized payments to a third party (ACH withdrawals)
  • Transfers from non-transactional accounts (except to loans)
  • Transfers made over the phone either automated or speaking to a Member Services Representative, including wire transfers.
  • Overdraft Transfers from non-transactional accounts
  • Online Banking Transfers from non-transactional accounts (except to loans)
  • Debit Card usage - Point of Service (POS) transactions

Unlimited Transactions

  • Non-transactional account to loan transfers
  • Deposits
  • Transfers performed at an Automated Teller Machine (ATM)
  • Transfers in person at a teller window
  • Withdrawals made in person, by mail or by messenger at a PFCU branch
  • ATM cash withdrawals and transfers (subject to daily amount limits and sufficient available funds)

What is a non-transactional account?

At PFCU, non-transactional accounts include: Regular Savings, Higher Yield Savings, Vacation Savings, Holiday Savings, Money Market, Business Savings, and Business Money Market accounts.

What happens if I go over the limit of 6?

For Savings Accounts:

PFCU will monitor members' accounts to ensure that no more than the permitted number of withdrawals or transfers is made. The member will be contacted by the credit union if the member exceeds the established limits on more than an occasional basis. If a member continues to violate those limits after being contacted by PFCU, the Credit Union will restrict the savings account from exceeding the limit of six transactions under the laws of Regulation D.

For Money Market Accounts:

During a given month, the seventh transaction in violation of Regulation D will be rejected. If a check is presented as the seventh transaction, the check will be returned as NSF (non-sufficient funds) and the member may be subject to a NSF fee (see current fee schedule) plus any fees charged by the party to whom the check was written. Once the transfer limit of six is reached in a month, even if the member has the funds available in his or her deposit account, no more of the covered withdrawals can be made until the next month. For members who continue to violate the limits, Regulation D requires that either the account be closed or that the funds be transferred to a transactional account that the member is eligible to maintain.

What can be done to avoid future Regulation D violations?

  • Have your direct deposits made to your checking account instead of your savings.
  • Use your checking account for all pre-authorized payments (insurance, utilities, gym membership etc.).
  • Plan ahead and make one large transfer instead of several small transfers.
  • Monitor the number of withdrawals made from your savings account(s).
  • Consider visiting a branch, using an ATM, or mailing your transaction request.

Why does PFCU need to adhere to Reg D?

  • Regulation D applies to all financial institutions.
  • The Regulation was implemented by the Board of Governors of the Federal Reserve System, whose job is to ensure financial institutions maintain adequate reserves for the funds they have on deposit.
Tom Flynn

I have been a customer for over 17 years.  PFCU has competitive rates, personable customer service, and your loan processes are very user friendly.   

Tom Flynn
Member since 1998

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