Federal Regulation D

Federal Regulation "D" Notice of Fee:

Starting October 1st, 2011 you will be charged $3 for every withdrawal transfer from your savings or money market account that exceeds the Federal Regulation "D" limit of 6 transactions per month.

Federal Regulation "D" Frequently Asked Questions (FAQs)

A Few Terms:

  • Transaction Accounts - Checking Accounts
  • Non-Transaction Accounts - Savings & Money Market Accounts
  • Automated Clearing House (ACH) Transactions - These include pre-authorized debits or withdrawals made from accounts such as Mortgage, Rent, Insurance, Gym Dues, Online Purchases such as E-Bay, etc. These are also known as Electronic Funds Transfer (EFT) Transactions.

Q: What is Federal Regulation "D"?

A: Regulation "D" requires financial institutions that offer Checking Accounts (also known as Transaction Accounts) to maintain enough money in the Federal Reserve System to cover outstanding checks should the institution fail. Although MCU is a financially sound institution, we are still required to comply with this Regulation.

Q: So What Does the Regulation Mean to Me?

A: Regulation"D" requires the Credit Union to keep track of monthly withdrawal transfers on Savings and Money Market Accounts (also known as Non-Transaction Accounts). Regulation "D" limits these types of transactions to six (6) per month.

Q: Can You Summarize the Types of Transactions that Count for Regulation "D" on Non-Transaction Accounts Such as Savings or Money Market?

A: Generally speaking, any combination of the following transactions cannot exceed 6 per calendar month on Non-Transaction Accounts:

  • Withdrawal transfers Made Through CU*Talk 24-Hour Telephone Teller
  • Overdrafts to Checking
  • Withdrawal transfers Made Over the Telephone through Our Member Services Department
  • Withdrawal transfers Made Through It's Me 24-7 Home & Mobile Banking
  • Automated Clearing House (ACH) or Electronic Funds Transfer (EFT) Transactions
  • Monthly Automatic withdrawal transfers
  • Checks Clearing a Money Market Account

Q: Which Types of Transactions are Unlimited on Non-Transaction Accounts?

A: As a general rule of thumb, you may perform an unlimited number of transactions that you make in person or that you authorize with your signature, such as:

  • Withdrawal transfers Made Through an ATM
  • Withdrawal transfers Made in Person and With Your Signature (such as with an MCU Teller)
  • Cashier's Checks Withdrawn From Your Account and Mailed to You
  • Loan Payments to MCU Loans
  • Telephone Transfers Authorized With Your Signature (such as a fax, letter, etc.)

Q: Why Do Loan Payments from Savings NOT Count for Regulation "D"?

A: Regulation "D" limits the number of transactions made from Non-Transaction Accounts to Transaction Accounts because of the reserve requirements. A loan is not a Transaction Account and is therefore not affected by Regulation "D".

Q: What Can MCU Suggest to Help Members Stay Within the Regulation?

A: There are a number of ways MCU Members can conduct their banking and remain within the limitations of Regulation "D". Here are a few ideas:

  • If you have your MCU Savings or Money Market Account set up as the source of your Overdraft Protection for Checking, consider keeping more money in your MCU Checking Account, which will necessitate fewer Overdrafts.
  • MCU offers Dividend Earning Checking Accounts.
  • If you make frequent transfers from Savings or Money Market to Checking, consider making fewer transfers using larger dollar amounts.
  • You may enjoy unlimited (up to your credit limit) transfers from an MCU Overdraft Line of Credit Loan which transfers funds to your Checking Account should the need arise. As with all of MCU's Consumer Loans, our interest rates are competitive, and you are only required to pay interest on the outstanding principal balance of your loan on days in which your loan has a balance.

If you have any questions, please call us at (616) 784-4822.