What is Reg D?


The Federal Reserve Board's Regulation D places limits on the number of withdrawals and transfers from certain deposit accounts at depository institutions.  It defines the types and number of transactions that can be performed on non-transaction accounts, such as savings, money market, and certificate accounts. 


This regulation can prevent checks from clearing your account. Please take a moment to review important information regarding these limits which may affect your accounts.


How does Reg D affect me?


In any given month, you are limited to no more than six preauthorized, automatic or telephone transfers from any of the account types listed above to any other account or to a third party. No more than three of these six transfers can be made by check, draft or debit card to a third party.  


What types of transactions count toward the six transfer limit? 


Any transfers made through the following methods:

  • Telephone teller or home banking

  • Fax

  • Telephone

  • Automatic transfer

  • Overdraft to checking

What types of transactions are NOT restricted?


For all of your accounts there is is NO limit on the number of transactions you make in person, by mail, or via an ATM.  Loan or VISA payments, transfers from your checking to other accounts are not restricted. 


What happens if I go over the limit?


If you exceed the federally-mandated limits, some transactions you expect to occur will not be processed, and some payments from your account may not be made. Your accounts may be subject to closure and you may incur a fee.  In many cases, it is possible to re-structure your accounts so that the federal regulations governing transaction limits do not restrict any payments from your accounts. 


What can I do to make sure I do not exceed the limit?


Here are some suggestions: 

  • Set up pre-authorized withdrawals for bills and other payments to come out of your checking account instead of your savings account

  • Make sure that you have enough funds in your checking account to cover your monthly expenses so that you don't have to transfer money from your savings account

  • Perform transfers from ATMs or at teller windows

  • Make deposits into your checking account initially, then transfer the money from your checking to savings.  There is no limit on the number of transfers you can make from your checking account

If you have any questions or concerns, please contact us.