Reg D Frequently Asked Questions
What is Regulation D?
A federal rule that sets a withdrawal limit on certain non-transactional accounts (savings accounts). AT WNY FCU this includes your share savings and club accounts. Regulation D, also known as Reg D, is a Federal Reserve Board rule that puts a limit of six transactions per month on certain transfers out of and withdrawals from your savings account.
After six withdrawals within one month (1st-31st), your share/savings account will be assessed a fee of $3.00 for each additional transfer. Fees are assessed monthly, on the last day of the month.
These fees are not assessed on Checking Accounts.
Members can transfer into savings accounts as often as they wish. Reg D is the federal government’s way of ensuring that financial institutions have the proper amount of reserves on hand and encourage people to use savings accounts as they are intended: to save money. These dividend-bearing accounts include regular savings, club accounts, and additional savings accounts on a member’s account.
Which transactions are limited under Reg D?
- Online & Mobile transfers from a savings account
- Transfers over the phone with a teller or via VRU, email, or fax
- Automatic or preauthorized transfer, including bill pay or recurring transfers
- ACH withdrawals
- Wire transfers over the phone
- Overdraft transfers from your savings account to your checking account
Which transactions don’t count under Reg D?
- Any deposits
- Withdrawals or transfers made at an ATM (click here to find a surcharge-free ATM)
- Withdrawals or transfers made in person at the credit union
- Transfers/withdrawals to make a WNY FCU loan payment
- Transfers/withdrawals to make a WNY FCU VISA payment
- Withdrawals or transfers made at a Shared Branch location (click here to find one)
What if I go over the transaction limit?
As a courtesy to our members, transfers/withdrawals attempted beyond your monthly limit will be honored if the funds are available. The credit union will charge a Reg D violation fee of $ 3.00. Fees are assessed monthly, on the last day of the month. These fees are to discourage our members from using these dividend-bearing accounts as transactions accounts.
How can I avoid Reg D fees?
- Open a checking account if you do not have one
- Do fewer transfers with larger sums of money
- Send your direct deposit to your checking account
- Do not authorize merchants to draft money from your Savings Account. Use your Checking Account, they are not subject to Reg D
- Know where our Shared Branch locations (click here) and free Allpoint ATM’s (click here) are located
- Avoid overdrafts, balance your account monthly, and know your balances