Reg D

Reg D

Important notice regarding your savings and/or money market account:

Below is information on Reg D and how it may affect your account.  If you are interested in learning more about the regulation, please visit the Board of Governors of the Federal Reserve System at www.federalreserve.gov/bankinforeg/reglisting.htm.  Search under D 12 CFR 204 Reserve Requirements of Depository Institutions to see the full regulation and updates.

What is Reg D?
Reg D was created by the Federal Reserve Board to control the supply of money available in the U.S. and financial institutions’ reserve requirements.  This is a Federal Regulation that affects all financial institutions.

What accounts do Reg D affect?
The regulation sets forth a limit on the number of certain types of transfers out of non-transactional savings-type accounts such as Share Savings and Club Accounts Type 01 through 09, IRA Savings Accounts Type 40 through 42, Certificate of Deposit or IRA Certificate of Deposit Accounts Types 50 through 97, and Money Market Accounts Type 30 to a transactional account (checking).

What are the transaction limitations of Reg D?
During any calendar month, you may not make more than six (6) withdrawals or transfers from any savings-type account defined above to another NorthStar Credit Union account of yours or to a third party.  Withdrawals or transfers include:  preauthorized or automatic transfers (such as overdraft protection transfers or bill payments deducted directly from your savings account), telephonic transfers (telephone using a Teller or Audio Response Teller (ART), fax, Mobile Banking or (online) Home Banking) and transfers by check, debit card or similar order to a third party.

Withdrawals or transfers by mail, in person at one of our offices and through the ATM are unlimited and are not subject to the Regulation D six transfer/withdrawal limitations.

How will this (Reg D) affect my account?
Effective February 1, 2013, Regulation D transactions in excess of six (6) per calendar month will be subject to a fee of $5.00 each.  This fee is listed on our fee schedule which was included with your March 2010 statement.  The fee schedule is also available on our website at here.

What can I do to make sure I do not exceed the limit?
Here are some things you may want to consider:

  • Set up pre-authorized withdrawals for bills and other payment to come out of your checking account instead of your savings account
  • Make transfers at ATMs or at teller windows
  • Consider an overdraft protection loan
  • Keep enough funds in your checking account to cover your monthly expenses so that you don’t have to transfer money from your savings account
  • Make deposits into your checking accounts initially and then transfer the money from your checking to savings.  There is no limit on the number of transfers you can make from your checking account.