What is Regulation D?

The Federal Reserve's Regulation D limits electronic transfers and withdrawals from savings accounts at financial institutions. At Members 1st, these restrictions apply to transfers and withdrawals from savings, money management, supplemental savings, and club accounts. No more than six (6) preauthorized, automatic, or telephone transfers and withdrawals may be made from each of these savings accounts to another account of yours or to a third party within a given month.

The transactions which are limited as per the regulation include EZ Call transactions, Members 1st Online transactions and ACH payments from a savings account to a third party. The regulation also includes restrictions of overdraft protection transfers from savings accounts to checking accounts to cover payments made by check, draft or access card to a third party. If you exceed these limitations, your account may be subject to a fee or be closed. Consequently, any overdraft in excess of this limitation may result in returned payments due to insufficient funds.

This regulation does not apply to teller transactions or ATM withdrawals. In order to avoid additional cost and embarrassment of returned checks, please keep sufficient funds on deposit in your checking account and establish payments to third parties from your checking account.

Overdraft protection was designed for exactly what it says: "Protection.” Overdrafts covered by advances on Personal Service Loans (PSL) or Home Equity Lines of Credit (HELOC) are not affected by this regulation, nor are they limited in number. If you are interested in this feature, you may apply for overdraft protection from a Line of Credit Loan.