Reg D and what it means for you
One of the least known and understood regulations around, Regulation D (Reg D) places restrictions on how many transfers you can make from non-transactional accounts like your Savings, Club or Money Market Accounts. While we recognize the inconvenience enforcing Reg D can present to our members, compliance is required for all financial institutions.
In order to help you better understand what Reg D is and what it means for you, we have provided the following FAQ. Take a look!
* What is Regulation D (Reg D)?
Federal Reg D places a monthly limit on the number of transfers you may make from your Savings, Club or Money Market Accounts without your physical presence being required. Transfers affected by this regulation therefore include:
– Transfers made using Online Banking
– Transfers made using Telephone Banking (Speedy Line)
– 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 (6) such transfers per month, per member account.
*Is Reg D a new regulation?
No. In fact, the transaction requirements laid out in Reg D have been in place for decades. These requirements are actually part of your Membership Agreement here at Point West as well (Section 12: Transaction Limitations, Item b. Transfer Limitations), and have been for a long time. We bring Reg D to your attention not because it is new, but because we want to make sure you, our members, are educated so you can make well-informed decisions about your accounts and finances here at Point West.
*What transactions are not affected by Reg D?
The following types of transactions are NOT affected by Reg D:
– ATM transactions
– Transfers made to Point West loans
– Transactions done in person at the Point West branch (or transactions handled at Shared Branching locations)
– Transactions sent in by mail or placed in our Night Drop with an original signature
– Online Bill Pay transactions (when paid from funds in your Point West checking account)
*Does this affect my accounts?
Truth is, the vast majority of Point West members are not affected by the limitations laid out in Reg D. Given the availability and adoption of checking accounts, debit cards, ATM transactions and more, the effect of the restrictions has been minimized over the years as members have moved away from just Savings, Club or Money Market Accounts.
That said, we still do have members that will occasionally come up against the six transaction limit in a given month. Should this occur, the Point West team will get in touch with the member to let them know that they have exceeded the regulatory limit, and work with the member to find solutions to ensure it does not happen again in the future.
*What are my options once an account has reached its Reg D limit?
You may complete withdrawals and transfers in person, by mail, or at an ATM.
If you have not inquired about opening a Point West Checking Account, our member service team is standing by to assist. With a Checking Account, you needn’t worry about the restrictions of Regulation D; plus, we have some great options, including our Free Checking and Eco Checking.
*If an account used for Overdraft Protection has reached its Reg D limit, will overdraft requests be honored?
No, if the Overdraft Protection account is a Savings, Club or Money Market Account. In that case, 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. To apply for a Line-of Credit loan, apply online or contact us.
*I have authorized a merchant to automatically withdraw payments from my Savings, Club or Money Market 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 you will receive a notice by mail and incur an Insufficient Funds change. To avoid this situation, make automatic payments using something other than a Savings Account, Club Account or MMA, 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 our Online Bill Pay to automatically send payments to the merchant, rather than authorizing the merchant to automatically withdraw payments.
*Is there a way to track how many Reg D transactions I have processed?
While our systems monitor for Reg D transactions, at this time the only way to track them is by monitoring your account or contacting Point West, at which point our member service team can assist you. We are working with our system provider to see if there are any ways to allow our members to be notified in advance of hitting the limit; we hope to have something for you on this in the future.
At Point West, serving you is our number one priority. If you have additional questions or concerns regarding Regulation D, your accounts, or other products and services we offer, please contact us at [email protected], visit us online at www.pointwestcu.com or give us at call at (503) 546-5000.