Federal Reserve Regulation D

Regulation D restricts the use of preauthorized or electronic transfers and withdrawals from Savings accounts.

• Preauthorized or automatic transfer
• Preauthorized or automatic withdrawals
• Automatic transfers to cover overdrafts
• Audio Response (our VIEW Teller)
• Telephone Transfer
• On-line Banking Transfers

Summary

Regulation D requires that financial institutions classify each of the accounts held by an accountholder as either a time deposit or a transactional account.

Time deposits include: Savings, Club, and Certificate and Money Market accounts.
Transactional account* include: Checking accounts

Regulation D requires that members not be permitted to perform more than six (6) preauthorized or automatic transfers or preauthorized withdrawals or telephone transfers from their SAVINGS to checking or any other account or third party. No more than three (3) of the six (6) withdrawals or transfers may be performed using a check, debit card, point-of-sale terminal or similar method payable to a third party.

Members are permitted to make unlimited withdrawals or transfers from their savings account provided the transactions are done in person, at an ATM, or by mail or messenger. Members are allowed unlimited transfers to make loan payments at the same credit union.

In other words?.According to regulation D: Your savings should be used as a Saving account. Not a checking account or overdraft protection account.

How could Regulation D possibly affect you?

• For most members of Olive View FCU, Regulation D will have little or no effect on their account.
• For members who have a checking account and rely on automatic savings transfers to cover overdrafts, Regulation D will have a bigger impact. After the 6 transfer limit, checks will be returned and you will be charged $25.00 each.
• For members who use their savings (not checking) for automatic payments, Regulation D may have an impact.

*(Accounts with unlimited withdrawals and transfers without penalty, do not require a specific minimum balance to maintain the account, and do not have a specified maturity day)