Regulation D Notice

Account Information pertaining to Regulation D
Regulation D: Savings Account Transaction Limitations

Effective July 2, 2009, the Federal Reserve has revised Regulation D - making the savings withdrawal and/or transfer limitation easier to understand.

Federal regulations require credit unions, as well as banks, to limit the way withdrawals may be made from a savings account . Withdrawals in excess of these limits may result in a fee or account closure.

Members sometimes wonder why accounts have different terms or pay different interest rates.
One of the reasons is Regulation D:

  • Regulation D applies to all financial institutions.
  • It imposes uniform reserve requirements on transaction accounts or non-personal time deposits, defines such deposits, and requires reports to the Federal Reserve.
  • The regulation establishes operating parameters for each account category, such as transaction accounts (demand deposit or checking accounts) and non-transaction savings accounts.
  • Regulation D also places limits on the type and number of withdrawals that can be made from certain non-transaction accounts, such as savings accounts.
  • Checking accounts are deemed to be "transaction accounts", and have no such transfer or withdrawal limitations.

What accounts does it affect and how?

Savings Accounts: During any month, you may not make more than six withdrawals or transfers to another account of yours or to a third party by means of a pre-authorized, automatic transfer or telephonic order or instruction, whether initiated by check, draft, debit card, if applicable, or similar order to a third party. This includes CU Online banking account transfers and bill payments.

To help you understand these Reg. D savings account transaction limitations, and to avoid excess activity charges, please review the following information:

Non-Limited Transactions :

  • Deposits
  • ATM cash withdrawals and transfers (subject to the daily amount limits and sufficient available funds)
  • Withdrawals made in person, by mail, or by messenger at WCCFCU's main office
  • Transfers made in person at Wood County Community FCU
  • Automatic transfers to repay your WCCFCU loan

Limited Transactions :

  • Checks, point-of-sale (POS) transactions, or debit card purchases
  • Automatic transfers to another deposit account at Wood County Community FCU
  • Automatic transfers to a third party or another institution
  • Telephone transfers, including those initiated by phone call, fax or e-mail through a credit union representative
  • CU Online banking transfers and Bill Payments

In order to ensure that no more than the permitted numbers of withdrawals or transfers are made, the regulation requires that depository institutions take steps to prevent excessive transactions.

Excessive Transactions: Withdrawals or transfers by mail, in person at one of our office, and through an ATM are unlimited and are not subject to the Regulation D 6-transfer withdrawal limitation. Transfers/withdrawals in excess of the 6-transfer/withdrawal limitations as described above may be subject to an excessive transaction fee.

For members who continue to violate those limits after they have been contacted by the credit union, the Regulation requires that either the account be closed or that the funds be transferred to a transaction account that the depositor is eligible to maintain.

NCUA Insured - Your deposits are now federally insured to at least $250,000 per depositor by the National Credit Union Administration (NCUA), and your retirement funds on deposit at Wood County Community FCU are separately insured by the NCUA up to an additional $250,000.