Regulation D, also known as the Reserve Requirements of Depository Institutions, is a federal regulation that limits the number of automated withdrawals to six per month from a Savings (deposit) account. It ensures that financial institutions maintain adequate reserves for the funds on deposit. Regulation D impacts the number of transfers and withdrawals allowed from each type of deposit account at Congressional FCU, which includes Savings, Money Market, Second Savings, and Club Accounts.

Please note that transaction limitations apply to Membership Savings, Second Savings, Money Market Accounts, and Club Accounts. You may not make more than six pre-authorized, automated, or telephone transfers from these accounts each month. No more than three of these six transfers may be made to a third party. If you exceed these transfer limitations in any month, we may return the transfer unpaid. Balance inquiries, loan payments, and all transactions within a Checking account do not count as part of those six transactions. And, there are no limitations to the number of transactions that you may perform on any account in person, by mail, or through an ATM.

To read more about this regulation and other regulations, please visit the Federal Reserve web site.

Which Transactions Count Towards the Six Transaction Limit?

Frequently Asked Questions

Q.  If I have reached my Regulation D limit and still need to transfer funds, how may I do that?

A.  You may do unlimited transfers in person, by mail, and by ATM.

Q.  If I have three Savings accounts at the Credit Union, does the six transaction limit apply to each account or are transfers aggregated from all three accounts in determining the six transaction limit?

A.  The six transaction limit would apply to each one, provided the accounts were not established for the sole purpose of avoiding Regulation D compliance.

Q.  I have a Savings, Money Market, Second Savings, and Reserve Line of Credit.  How do I make sure that I have them all set up for overdraft options?

A.  From Online Banking, you may select Account Services, and then Overdraft Protection to modify the options.

Q.  Does Regulation D apply if I arrange for automatic debit withdrawals directly with a third party to pay for phone service, newspaper delivery, cable, etc.?

A.  If you arrange for automatic withdrawals from your Savings for a utility or subscription service, etc., these transactions are impacted by Regulation D.  To avoid this, please set up all automatic withdrawals to come out of your Checking.  Or, take advantage of Congressional’s Bill Pay service, which is free when you maintain E-Statements and a Visa Check Card on the same account.

Q.  What about electronic deposits to Savings, such as tax returns or direct deposit?

A.  Deposits to Savings are not monitored – the purpose of a Savings account is to put money into the account.  Regulation D only affects withdrawals from Savings; therefore, we suggest that your direct deposit be posted to your Congressional Checking.  Call, email, or visit a branch office today to set up your direct deposit preferences.

Q.  Does Regulation D apply to the use of the Visa Check Card at gas stations, grocery stores, restaurants, and the like?
 
A.  When you use your Visa Check Card for a point of sale transaction at a gas station or retailer, the funds are debited from your Checking, which means that the transaction is not subject to Regulation D. In the event, however, that Visa Check Card transactions create an overdraft and funds are automatically transferred from your Savings to your Checking, then this transfer impacts Regulation D. 

This is a great reason to set up a Congressional Reserve Line of Credit.

Q.  What is a Congressional Reserve Line of Credit?  How do I set up a Congressional Reserve Line of Credit?
 
A.  The Congressional Reserve Line of Credit acts as an additional safety net at a low cost and there is no fee for applying.  It is attached to your Checking.  When there aren’t enough funds in your Checking to cover your purchases, funds are automatically transferred from your line of credit into your Checking.  What’s more, you may transfer funds from the line of credit to your Checking whenever you want.  It’s like writing yourself a loan when you need it. 

To find out more, visit our web site after you log out of Online Banking.  You may also stop by a branch office at anytime, or speak with a Loan Advisor.

Q.  Will I be charged a fee for going over my limit of six transactions per month?
 
A.  Yes, the Credit Union will assess a $25 Excessive Transaction Fee for each transaction that exceeds the transaction limits set forth above.  This fee will be assessed regardless of whether the Credit Union pays the transfer or returns the transfer unpaid.

Additional Tips

1. Plan ahead and make one large transfer instead of several small transfers. Each Regulation D transfer (made by calling or faxing the Call Center, Online Banking, or Teller 24) counts as one transaction, no matter what the amount.  You may utilize an ATM to transfer funds between your accounts to avoid Regulation D.
   
   
2. If you are concerned about the number of overdraft transfers that you may have, apply for a Congressional Reserve Line of Credit.  Transfers from a Congressional Reserve Line of Credit do not count towards Regulation D.
   
   
3. Consider visiting a branch office, ATM, or mailing your transfer request.  These transfers are not limited.
   
   
4. Balance your Checking on a regular basis.  This may help you reduce the number of Regulation D transfers from your Savings account.  Or, take advantage of our Online Bill Pay service, which is free when you maintain E-Statements and a Visa Check Card on the same account.
   
   
5. Have your direct deposit sent to your Checking account.  You may transfer excess funds to your Savings without incurring a Regulation D transaction.