Regulation D FAQs

Regulation D FAQ

Regulation D, also known as the Reserve Requirements of Depository Institutions, is a Federal regulation that limits the number of automated withdrawals to six per month from a Share (Savings) Account. It ensures that financial institutions maintain adequate reserves for funds on deposit. Regulation D impacts the number of transfers and withdrawals allowed from each type of deposit account at all financial institutions including Heritage Family Credit Union.

Transaction limitations apply to Primary Share (Savings) Accounts, Secondary Share (Savings) Accounts, Money Market Share Accounts, and Club Accounts which, in this summary, we will refer to collectively as “Savings”. You may not make more than six pre-authorized or automated transfers from these accounts each month. No more than three of these six transfers may be made to a third party. If you exceed these transfer limitations in any month, we may return the transfer unpaid. Balance inquiries, payments to HFCU loans, and all transactions within a Share Draft (Checking) Account do not count as part of those six transactions. There are no limitations to the number of transactions that you may perform on any account in person, by mail, or at an ATM.

To read more about this regulation and other regulations, please visit the Federal Reserve web site.

Which Transactions Count Towards the Six Transaction Limit?

Regulation D Chart

Type of transaction	Does it count towards the limit of six transactions?
Electronic debits/withdrawals from your Savings from a third party (i.e. utilities, gym membership, etc.)	YES
Transfers from Savings to Checking via e-Branch Home Banking or MARS 24-Hour Teller	YES
Transfers from Savings to Checking via fax or email request	YES
Transfers from Savings to Checking with a Call Center Representative	YES
Visit a branch office to transfer funds	NO
Transfers from an Overdraft Line of Credit to cover Checking transactions	NO
Transfers from Savings to make an HFCU loan payment	NO
ATM withdrawals/transfers from Savings	NO
Direct deposits into Savings accounts (such as payroll and tax refunds, etc.)	NO
Transfers from Checking to Savings through a teller	NO

If I have reached my Regulation D limit and still need to transfer funds, how may I do that?

You may perform unlimited transfers in person, by mail and by ATM.

If I have three Savings accounts at the Credit Union, does the six transaction limit apply to each account? Are transfers aggregated from all three accounts in determining the six transaction limit?

The six transaction limit applies to each one provided the accounts were not established for the sole purpose of avoiding Regulation D compliance.

Does Regulation D apply if I arrange for automatic debit withdrawals directly with a third party to pay for phone service, newspaper delivery, cable, etc.?

If you arrange for automatic withdrawals from your Savings for a utility or subscription service, etc., these transactions are impacted by Regulation D. To avoid this, please set up all automatic withdrawals to come out of your Checking. Or, take advantage of Heritage Family’s e-Bill Pay service, which is free when you have Direct Deposit or are an Ambassador Member.

What about electronic deposits to Savings, such as tax returns or Direct Deposit?

Deposits to Savings are not monitored – the purpose of a Savings account is to put money into the account. Regulation D only affects withdrawals from Savings; therefore, we suggest that your Direct Deposit be posted to your Heritage Family Checking Account. Call, email, or visit a branch office today to set up your Direct Deposit preferences.

Does Regulation D (now known as regulation E) apply to the use of Visa Check Cards at gas stations, grocery stores, restaurants, and the like?

When you use your Visa Check Card for a point of sale transaction at a gas station or retailer, the funds are debited from your Checking, which means that the transaction is not subject to Regulation D. This is a great reason to set up an overdraft line of credit.

Will I be charged a fee for going over my limit of six transactions per month?

Yes, the Credit Union will begin assessing a $10 Excessive Transaction Fee for each transaction that exceeds the transaction limits set forth above. This fee will be assessed regardless of whether the Credit Union pays the transfer or returns the transfer unpaid.