|
Regulation D Frequently Asked
Questions
THIS REGULATION
AFFECTS
ALL FINANCIAL
INSTITUTIONS.
1. What is Regulation
D?
Federal Regulation D places a
monthly limit on the number of transfers you may make
from your Savings
Accounts (savings, Christmas, Vacation, other family
club accounts) without your physical presence being required.
Transfers affected by this regulation therefore
include:
- Transfers made using Online Banking
(Home Financial Services – HFS)
- Transfers made using Telephone Banking
(Audio Response)
- Overdraft transfers (made automatically
to cover insufficient funds in other accounts; see
below)
- Transfers made by a Member Service
Representative on your behalf
- Pre-authorized, automatic, scheduled or
recurring transfers (see below)
You are allowed
six such transfers per
month, from all types of savings accounts
combined.
2. What transactions are not affected by
Regulation D?
- ATM
transactions
- Transfers made to Milford Federal Credit
Union loans
- Transactions done in person at the
credit union
- Transactions sent in by
mail
- Bill Pay (which uses funds from your
checking account)
3. What are my options once an account has
reached its Regulation D limit?
You may complete withdrawals and
transfers in person, by mail, or at an
ATM.
4. If an account used for Overdraft Protection
has reached its Regulation D limit, will overdraft requests be
honored?
No, if the Overdraft Protection account
is a Savings Account. In that case, the item will be returned,
you will receive a notice by mail and incur an Insufficient Funds
charge for every overdraft attempted beyond your monthly limit.
However, if the Overdraft Protection account is a Line-of-Credit
loan (which is not affected by Regulation D) the overdraft will
complete normally.
5. I have authorized a merchant to
automatically withdraw payments from my Savings Account; do these
count against my monthly limit?
Yes. These payments (which you might
know as "ACH" or "EFT" transactions) follow Regulation D
limitations. Any withdrawals attempted beyond your monthly limit
will not be honored and the ACH item will be returned. You will
receive a notice by mail and incur an Insufficient Funds charge.
To avoid this situation, make automatic payments using
something other than a Savings Account, such as a checking account.
Contact the merchant to arrange this change, and be aware that your
request could take more than a month to go into effect.
Alternatively, consider using Bill Pay to automatically send
payments to the merchant, rather than authorizing the merchant to
automatically withdraw payments.
You can read more about this regulation on the
Federal Reserve's website
by clicking on this link :
http://www.federalreserve.gov/bankinforeg/reglisting.htm
| 