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Regulation D Explained

What you need to know about your savings & money market accounts.

Federal Government Rule (Federal Reserve Bank’s Regulation D)
With few exceptions, the U.S. government limits the number of transactions you may have from a savings or money market account to six (6) per month without being present at a branch. Regulation D is a federal regulation with which all federally-insured financial institutions must comply.


Consequences for Exceeding Transfer Limits
As a convenience to our members, Community Choice has been waiving any fees associated with exceeding monthly transfer limits. Recently, auditors have advised us that we are required to assess a fee in order to be in compliance.


What is the Fee?
We’ve done our best to keep the fee as low as we can. Beginning February 1st, all transactions over the limit will be assessed a $1.00 fee.


How Can I Avoid the Fee?

  • Use a Checking account. There are no federal regulations that limit the number of withdrawals or transfers from checking accounts.
  • Have payroll, deposits, or ACH go into a checking account.
  • Have direct debits and automatic bill payments withdrawn from a Checking account.
  • Limit the number of withdrawals from your Savings account.

What is Federal Regulation D?
Regulation D places a monthly limit on the number of transfers you may make from your savings accounts or money market accounts without your physical presence being required.

Transfers affected by this regulation include:

  • Transfers made using online banking
  • Transfers made using Account Management by Phone
  • Overdraft transfers (made automatically to cover insufficient funds in other accounts)
  • Telephone transfers made by a member service representative on your behalf
  • Pre-authorized, automatic, scheduled, or recurring transfers


You are allowed (6) six such transfers per month, per account (checks count against the month in which they clear, not when they are written).


Transfers NOT affected by this regulation include:

  • ATM transactions
  • Transfers made to Community Choice Credit Union loans
  • Transactions done in person at a branch
  • Transactions sent in by mail or night-drop with an original signature

What are my options once an account has reached its Regulation D limit? You may make withdrawals and transfers in person, by mail, or at an ATM.

How can I avoid coming in all the time to transfer funds? You can keep your funds that you intend on spending for transactions in your checking account. Your checking account is an UNLIMITED transaction
account that is not governed by REG D. Only keep the funds in your savings accounts you intend to save.

If I have the funds in my checking account, and I have reached my (6) REG D transactions, will it automatically pull the money from my checking account to cover this transaction? NO. Savings accounts do NOT have automatic over drafting features. Only our checking accounts have automatic over drafting.

How will this affect my debit card transactions? If you have reached your (6) REG D transactions in your savings account, and you have no funds in your checking account (but you have funds in your savings account) and you are trying to make a purchase with your debit card, it WILL NOT AUTHORIZE your purchase. The system cannot automatically transfer the funds to cover the purchase (because you have exceeded the 6 REG D transactions), so it won’t consider those funds when determining if you have the funds to authorize that purchase.

Do I have 6 transfers out of EACH savings or money market account? No, the system counts transactions cumulatively.

What do you suggest as my best course of action to prevent any items from being returned? The best solution is to have all of your auto payments and transfers set up to transfer out of your checking account since there are NO limits to the amount of transactions that you can perform. We would also suggest having direct deposits go in to your checking account. We can then set-up distributions, so any money you would like in your savings account will automatically transfer there when you receive your direct deposit. We can set distributions so that they transfer to ANY account you have with CCCU.