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Regulation D Compliance

As your financial partner, we are required to monitor member compliance with Regulation D, which involves certain limits to your savings account transactions. Here is a quick reference for the allowable transactions during any given month:

LIMITED | 6 TRANSACTIONS/MONTH:

  • Electronic payments
  • Phone requests
  • Online transfers
  • Automatic payments
  • Point-of-sale
  • Fax requests

UNLIMITED | TRANSACTIONS/MONTH:

  • In-person at a branch (including shared branches)
  • ATM transactions
  • Mail and written requests
  • Transfer payments made to a Melrose CU Loan

To follow are some Frequently Asked Questions that may help you better understand Regulation D requirement specifics.  We are here to help you adhere to Regulation D compliance requirements and can review your accounts in detail with you. Please feel free to call us at 718-658-9800 with additional questions or stop by the branch for one-on-one assistance. We’re happy to help you in every aspect of your financial life.

Member Services | Melrose Credit Union

Regulation D FAQs

WHAT IS REGULATION D (REG D)?

Reg D is a federal law that applies to all financial institutions insured by the federal government. This law restricts the number of transfers and/or withdrawals that you may make each month from your Share Savings Account(s).

WHICH ACCOUNTS ARE AFFECTED BY REG D?

Share Savings Accounts

HOW DOES REG D AFFECT ME?

During any month, you may not make more than six (6) withdrawals or transfers to another account or to a third party including: withdrawals or transfers to another account, online banking transfers, overdraft protection transfers, transfers done over the phone with our Member Service representatives, and ACH payments or withdrawals. If you exceed the Reg D limitations, your transaction may be refused or reversed, and your account may be subject to a fee or closed.

WHAT TYPES OF TRANSFERS/WITHDRAWALS ARE LIMITED BY REG D?

Transfers that do not require your physical presence, including:

  • Transfers made using Online Banking
  • Transfers made using Telephone Banking
  • Overdraft transfers (made automatically to cover insufficient funds in other accounts)
  • Transfers made by a Member Service Representative on your behalf
  • Pre-authorized, automatic, scheduled or recurring transfers
  • ACH withdrawals

WHICH TRANSACTIONS ARE NOT AFFECTED BY REGULATION D?

Reg D does not apply to your Share Draft Checking Account or the following share account transactions:

  • ATM transactions
  • Transfer payments made to a Melrose Credit Union loan
  • Transactions done in person at a branch (including shared branches)
  • Transactions sent in by mail

WHAT ARE MY OPTIONS ONCE AN ACCOUNT HAS REACHED ITS REG D LIMIT?

Withdrawals and transfers can be completed in person, by mail, or at an ATM.

HOW CAN I AVOID EXCEEDING REG D LIMITS?

Recurring electronic payments can be made from your Share Draft Checking Account – a transactional account not subject to Reg D limitations.

  • Keep sufficient funds in your share draft account to avoid overdraft transfers.
  • Make transfers at an ATM or in person at a branch (or shared branches).
  • Make one large transfer instead of several small transfers since each Reg D transfer counts as one transaction, regardless of the dollar amount.
  • Use your Share Draft Checking Account for Direct Deposits – excess funds can be transferred to your Savings without limit.

I HAVE AUTHORIZED A MERCHANT TO AUTOMATICALLY WITHDRAW PAYMENTS FROM MY SHARE ACCOUNT.

DO THESE COUNT AGAINST MY MONTHLY LIMIT?

Yes, these payments (also known as “ACH” or “EFT” transactions) are restricted by Reg D limitations. Instead, make automatic payments using something other than your Share Account, such as a Share Draft Checking Account. If you have authorized over six (6) merchant payments from your share account, we recommend that you contact those merchants to change the account used (note: this may take one month or more to go into effect).

WHAT WILL MELROSE DO IF I EXCEED MY WITHDRAWAL LIMIT?

Reg D requires us to take steps to prevent excessive transactions and that our members adhere to the permitted number of monthly withdrawals and transfers. Effective February 1, 2017, if you exceed the Reg D limitation three times in a 12-month period, we will return the item as unpaid; however, we reserve the right to pay the excess Reg D item and charge you a fee of $30.00 at our discretion.

WHAT HAPPENS IF I CONTINUALLY VIOLATE REG D?

For members who continue to violate the Reg D limits after notification by the Credit Union, the Regulation requires us to either close the account or transfer the funds to a transaction account that the depositor is eligible to maintain.

DOES REG D APPLY TO DEPOSITS TO MY SHARE ACCOUNT?

Deposits to Savings have no restrictions since the purpose of a Savings account is to continually add money and grow your account. Reg D only limits withdrawals from Savings.

ATM/Shared Branch