Regulation D impacts the number of transactions Capitol Credit Union will allow on certain accounts (Share Savings and Money Market accounts) that are not intended to be transaction accounts. In other words, the Federal Reserve requires financial institutions to treat a typical savings account differently from a checking account. Savings accounts are intended to be established for long term savings with few withdrawals. On the other hand, checking accounts are established for frequent transactions.
The Regulation was implemented by the Board of Governors of the Federal Reserve System to ensure financial institutions maintain adequate reserves for the funds they have on deposit, and ensure sufficient funds are available to meet consumer’s withdrawal demands. Reserve requirements are based upon a financial institution’s total balance held in transaction versus non-transaction accounts.
Regulation D Limitations
Members may make up to six withdrawals or transfers from a Share Savings or Money Market account per calendar month:
- By preauthorized transfer to a third party (example: recurring insurance premium, health club dues, etc.)
- By PC Capitol Access online transaction (transfers to non-loan accounts)
- By Capitol Access telephone transaction (transfers to non-loan accounts)
- By telephone call to Capitol Credit Union
- By fax to Capitol Credit Union
- By preauthorized transfer to member’s non-loan account (checking, club, Money Market)
- By overdraft to checking account
Of those six transactions per calendar month, a maximum of six may be:
- By check
- By Cashier’s Check to a third party
- By preauthorized payment to a third party (point-of-sale transactions with an ATM card)
Transfers, Withdrawals or Wires:
- By in person request
- By ATM
- By mail
- By messenger
- By check to self
- To pay a Capitol Credit Union loan
If you anticipate more frequent transactions, contact a Member Services Representative to discuss converting your account to a transaction account.