Regulation D FAQs


What is Regulation D?
Regulation D (Reg D) is a federal law that limits the number of transfers and withdrawals that you can make from an interest bearing account (Regular Savings, Money Market, or Club Account) to a Checking Account or to a third party. According to Regulation D, you may not make more than six pre-authorized, automated, or telephone transfers/withdrawals from these accounts each month. The regulation was established to prevent consumers from using interest bearing accounts as transaction or checking accounts. Fees are typically applied to such transfers and withdrawals in order to discourage consumers from using interest bearing accounts as transaction accounts.

If you exceed these transfer/withdrawal limitations in any month, we may return the item unpaid. As a courtesy to our members, with the exception of Home Banking and Touch Tone Teller transactions, transfers/withdrawals attempted beyond your monthly limit will be honored if the funds are available.

Overdraft/Reg D Fees
There may be fees associated with transfers from an interest bearing account to your Checking Account or to a third party.  RTP Federal Credit Union (RTP FCU) allows two free transfers per interest bearing account each calendar month. After the first two transfers, you will be charged an Overdraft/Reg D fee of $13.00 per transfer.

The following transactions are subject to Reg D limitations:

• Transfers/withdrawals from an interest bearing account using Home/Internet Banking
• Transfers/withdrawals from an interest bearing account using TouchTone Teller
• Overdraft transfers (made automatically to cover nonsufficient funds in other accounts)
• Transfers/withdrawals from an interest bearing account requested through our Call Center via telephone, e-mail, or fax  
• Pre-authorized, automatic, scheduled, or recurring transfers/withdrawals from an interest bearing account

What transactions are NOT affected by Regulation D?
There are no limits or fees associated with the following types of transactions:

• Transfers/withdrawals from an interest bearing account made at an ATM
• Transfers/withdrawals from an interest bearing account to make a loan payment
• Transfers/withdrawals from an interest bearing account made in person at a branch
• Transfers/withdrawals from an interest bearing account sent in by mail with an original signature
• Transfers from your Checking Account to an interest bearing account

How does Regulation D affect Overdraft transfers from a Savings Account?
If a deposit account used for Overdraft Protection has reached the Reg D limit, will overdraft requests be honored?
Overdraft transfers do count towards your Reg D limit. Transfers/withdrawals attempted beyond your monthly limit will be honored if the funds are available. Your first two transfers from an interest bearing account are free each calendar month. After the first two transfers, you will be charged an Overdraft/Reg D fee of $13.00 per transfer or withdrawal.  

I have authorized a merchant to automatically withdraw payments from my Savings Account or Money Market Account. Are these electronic payments subject to Reg D limitations?
Yes. These electronic payments (which you may know as "ACH" or "EFT" transactions) are included in the Reg D limitations. Transfer and withdrawal attempts beyond your monthly limit will be honored if the funds are available. However, you will incur a $13.00 Reg D fee per transfer/withdrawal

How can I Avoid Reg D Fees and Limitations?

• Send your direct deposit to your Checking Account – not your Savings or Money Fund. You can transfer money from your Checking Account to your Savings Account without limits or fees because Checking Accounts are not subject to Reg D.
• If you think that you will need to transfer money from your Savings or Money Fund account to cover Checking Account transactions, plan ahead and make one large transfer instead of several small transfers. Note: Each transfer (made through the Call Center, TouchTone Teller, or Home Banking) counts as one transaction, regardless of the dollar amount transferred.
• You should not authorize merchants to draft money from your Savings Account. Use your Checking Account for these transfers. Automatic transfers from merchants should come out of your Checking Account instead of your Savings Account since Checking Accounts (non-interest bearing) are not subject to Reg D limitations.
• Avoid Reg D fees by transferring funds from interest bearing accounts to your Checking Account by using an ATM; by requesting the transfer in person at a branch; or by mailing your transfer request with a signature to the following address:

RTP Federal Credit Union
Attn: Member Services
P.O. Box 12807
RTP, NC  27709

• Overdraft Lines-of-Credit are not affected by Reg D so unlimited overdrafts may take place each month according to the interest rate and terms disclosed in your loan agreement.
• Balance your Checking Account on a regular basis. This will help limit the number of overdraft transfers from your savings account, which are subject to Reg D limitations.

Rev JULY09