Q: What is Regulation D?
A: Reg. D is a Federal Reserve Board regulation that limits the number of certain types of withdrawals and transfers from Savings, Additional Savings or Money Market Accounts to six (6) per month with each account.
Q: What is the purpose of Reg. D?
A: Reg. D regulates the level of reserves a financial institution maintains.
Q: What policy change is Delta Community making to comply with Reg. D?
A: Effective November 1, 2015, ACH (Automated Clearing House) and checks presented for payment, exceeding the Reg. D limit of six, will be returned as unpaid if no other overdraft protection is available. This change aligns with our policy to decline debit and online transfer transactions that exceed Reg. D limits.
Q: How does Reg. D affect my account?
A: If you make frequent withdrawals from your Delta Community Savings or Money Market Account to cover authorized transactions or overdrafts, the account could reach Reg. D withdrawal limits. When the limit is reached, it could result in denied debit card transactions or returned ACH and Check items on your account. Overdraft protection options.
Q: How can I avoid having a returned ACH or Check transaction?
A: Delta Community offers various options for your checking account to use as overdraft protection instead of a savings or money market account. These options include a Personal Line of Credit or a Delta Community Visa® Credit Card. You can also set up low-balance alerts through your Online Banking account in an effort to avoid overdraft transfers that could cause your account to exceed Reg. D limits.
Q: If my account exceeds Reg. D limits, will I receive notification?
A: Yes, when Reg. D limits have been exceeded, the Credit Union will send you a letter providing details of the item which has been returned and the fee applied to the account.
Q: When does the Reg. D counter reset?
A: The Reg. D counter resets at the beginning of each month, bringing the debit card, ACH and Checks counter back to zero.
Q: What types of transactions are counted toward the six transfers permitted each month?
A: The types of transactions that count toward the six transfers permitted each month under Reg. D include:
- ACH transfers from a Savings or Money Market Account to another financial institution or third party for payment by means of a preauthorized or automatic transfer, telephone agreement or Online Banking.
- Check withdrawal (either traditional or issued via Online Banking) from a Savings or Money Market Account.
Online Banking transfers from a Savings or Money Market Account to any other Delta Community account. Automatic transfers from a Savings or Money Market Account to cover checks, ACH or Electronic Funds Transfers for overdraft protection.
Checking Account debit card transactions which overdraft from a Savings or Money Market Account when funds in the Checking Account are insufficient.
- Recurring scheduled transfers from a Savings or Money Market Account to any other Delta Community account.
Q: What types of transactions are not counted toward the six transfers permitted each month?
A: The types of transactions that are not counted toward the six transfers permitted each month under Reg. D include:
- Withdrawal checks issued via Online Banking when made payable to the member and mailed to the member.
- Transfers for the purpose of repaying a Delta Community loan.
- Transfers between the same accounts made by mail request, ATM or in a branch.
- Debit card transactions that do not trigger overdrafts from Savings or Money Market Accounts.
Q: If I have two Savings Accounts am I limited to six transactions for each account or six in total for both?
A: Each month you are permitted six transfers per Savings and Money Market Account; however, you would need to ensure both are linked for overdraft purposes.
Q: Do ATM transfers from Savings and Money Market Accounts count toward Reg. D?
A: No, ATM transfers do not count toward Reg. D limits.