Regulation D: Robins Financial Credit Union
From time to time we get asked why a member isn’t allowed to transfer money from their savings account more than 6 times a month. More often than not, it’s due to something called Regulation D. Regulation D applies to all financial institutions, not just credit unions. It was set in place by the Federal Reserve in order to prevent people from using their savings accounts like checking accounts. Checking accounts are also known as “transaction accounts,” because they offer unlimited transactions in virtually any form. There are also “non-transaction accounts,” like savings and money market accounts, that are intended for fewer transactions. Federal law limits the transactions made on these accounts. Regulation D states that no more than six pre-authorized, telephone, automatic, electronic, or check withdrawals or transfers in any combination are permitted in any calendar month from any “non-transaction” or savings-type account. So, what can you do to avoid hitting your 6-transfer limit? Well, the main thing is to use your checking account, rather than your savings account, for your direct deposit, scheduled/automated transfers, ACH transactions, etc., since the Regulation D restrictions don’t apply to checking accounts. We also recommend setting up other overdraft protection sources, such as your Robins Financial Visa® or Line of Credit, in addition to using your savings account. That way there’s an alternative source in place in case you do reach your transfer limit on your savings account. If you do hit your limit, but need to make an additional transfer before the next monthly cycle begins, you can always visit a branch location where a Robins Financial representative will be happy to assist you. And if you only have a savings account, be sure to ask about all the different checking account options we have to fit your needs. There’s sure to be one that will work for you! For more information, call, click, or visit any of our branch locations.