Federal Regulation D Limits Electronic Transactions

Federal Regulation D limits the number of pre-authorized, electronic, or automatic transfers or debits out of a deposit account to six (6) transactions per month. A $20 FEE WILL BE CHARGED FOR EACH REGULATION D TRANSACTION OVER THE MAXIMUM MONTHLY LIMIT.

Q:  What is Regulation D?

A: Regulation D (“Reg D”) is a federal regulation that places a monthly limit on the number of transfers you may make from your deposit accounts without your physical presence being required.

Q:  Which accounts at SMCU are considered deposit accounts?

A:  SMCU considers all Savings Accounts, Money Market Accounts, and Certificates as deposit accounts.

Q:  Are checking accounts subject to Regulation D?

A:  No, checking accounts are not subject to Regulation D.  There is no limit on any transactions on a checking account.

Q:  Which transactions are subject to the Regulation D limitations?

A:  Any automatic or electronic transactions that are not done in person at a branch or ATM.  The transaction must result in funds being taken out of a Savings Account, Money Market Account, or Certificate.  Examples of Reg D transactions are:

·         Transfers made using Online Banking

·         Transfers made using our automated Telephone Banking

·         Transfers made by a Member Service Representative when calling our Contact Center

·         Overdraft transfers (made automatically to cover insufficient funds in other accounts)

·         Pre-authorized, automatic, scheduled or recurring transfers (called ACH withdrawals)

·         POS Transactions (transactions using a Cash Card or Debitcard)

·         Automatic transfers between accounts

·         Checks written from a Money Market Account  - A check counts against the month in which it clears, not when it was written.

Q:  What types of transactions are not considered Regulation D Transactions?

·         Transactions from a checking account

·         Deposits to your account

·         Transactions at a branch

·         Transactions at an ATM

·         Transactions at a Shared Branching Service Center

·         Transactions at a 7-Eleven Shared Branching Kiosk

·         Telephone Banking or Contact Center withdrawals resulting in a Cashier’s Check made payable to yourself

Q:  I have more than one deposit account.  Am I limited to a total of six transactions for all my deposit accounts combined?

A:  You are allowed up to six Regulation D transactions per month for EACH of your deposit accounts. 

Example:  If you have three savings accounts, each savings account can have up to six Regulation D transactions.

Q:  Why are you charging a fee for going over the limit?

A:  The Reg D Excessive Debit Fee is charged as way to limit accountholders from going over the federally enforced limit.  Other restrictions approved by the Federal government are closing out the account or blocking additional transactions from posting to the account.  SMCU chose the option that we felt would least impact our members.

Q:  How can I avoid the $20 fee?

A:  Regulation D transactions must be limited to six (6) or less per month.  Some options include:

·         Open a checking account if you do not have one with SMCU.  SMCU provides various checking accounts  tailored to your needs

·         Use your checking account for the majority of your withdrawals and debits.

·         Keep more funds in your checking account.  Transfer excess funds from your checking account to your deposit account after you verify it is not needed.

·         Locate an SMCU branch, Shared Branch, Free ATM, or 7-Eleven Shared Branching Kiosk near you