Regulation D Transaction Limitations

What is Regulation D?

The Federal Reserve created Regulation D to make sure financial institutions have enough cash on hand to meet customers' cash withdrawal requests. Among other requirements, the rule states how much money financial institutions should have in reserve and requires them to report it regularly. As a result, most financial institutions have limits on the number of transfers and withdrawals that you can make from all Share/Savings Accounts, Money Market and Club Accounts (all referred to as "Savings Account" hereafter) to a Checking Account or to a third party. Fees are typically applied to such transfers and withdrawals in order to discourage consumers from using Savings Accounts as transaction accounts.

RTP Credit Union (RTP CU) limits pre-authorized, automated or telephone transfers/withdrawals from a Savings Account to six each month. 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 TouchTone Teller transactions, transfers/withdrawals attempted beyond your monthly limit will be honored if the funds are available.

Transfer and Withdrawals Fees for Savings Accounts

There may be fees associated with transfers from a Savings Account to your Checking Account or to a third party. RTP CU allows two free transfers per Savings Account each calendar month. After the first two transfers, you will be charged an Overdraft/Reg D fee of $13.00 per transfer/withdrawal.

We count a transaction on the date we post it to your account. This date may be different from the date you authorize, transfer or write the transaction, which means a transaction made on the last day of the month may not be counted until the following month.

The following transactions are subject limitations:

Transfers/withdrawals from a Savings Account using Home/Internet Banking
Transfers/withdrawals from a Savings Account using TouchTone Teller
Overdraft transfers (made automatically to cover nonsufficient funds in other accounts)
Transfers/withdrawals from a Savings Account requested through our Call Center via telephone, email or fax
Pre-authorized, automatic, scheduled, or recurring transfers/withdrawals from a Savings Account

What transactions are NOT limited?

There are no limits or fees associated with the following types of transactions:

Transfers/withdrawals from a Savings Account made at an ATM
Transfers/withdrawals from a Savings Account to make a loan payment
Transfers/withdrawals from a Savings Account made in person at a branch
Transfers/withdrawals from a Savings Account sent in by mail or with a signature
Transfers from your Checking Account to a Savings Account

What happens if I make more than Six Transfers/Withdrawals?

Transfers/withdrawals attempted beyond your monthly limit will be honored if the funds are available. Your first two transfers from a Savings Account are free each calendar month. After the first two transfers, you will be charged a $13.00 fee per transfer/withdrawal.

I have authorized a merchant to automatically withdraw payments from my Savings Account or Money Market Account. Are these electronic payments subject to limitations?

Yes. These electronic payments (which you may know as "ACH" or "EFT" transactions) are subject to the limitations. Transfer and withdrawal attempts beyond your monthly limit will be honored if the funds are available. However, you will incur a $13.00 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.
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 are not subject limitations.
Avoid fees by transferring funds from your Savings Account 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 subject to limitation 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 the limitations above.

Rev DEC20