Regulation D…what you need to know
Regulation D or Reg. D is a government regulation, which among other things, defines transaction accounts and non-transaction accounts. Transaction accounts are allowed an unlimited amount of transactions on the account (i.e. checking (share draft) accounts). Reg. D places limitations on non-transaction accounts (i.e. savings (share) accounts, money market accounts, etc.). Cedar Point has defined our share accounts* as non-transaction accounts.
The section of Reg. D causing the most confusion is the statement "a member is limited to six preauthorized or automatic withdrawals, telephone transfers, or transfers initiated by personal computer per month on non-transaction accounts." The regulation also states no more than three of the six can be by draft, debit card or similar order payable to a third party.
Transactions counted against Reg. D limits
Transfers from share account* using PCU
Transfers from share account* using Teller24
Transfers from share account* made by calling an MSR
*Share accounts are defined as non-transactional accounts and include suffixes 0, 3, 5, and 10-14
Transactions from draft accounts that count against Reg. D limits
Any transaction which overdraws your share draft account causing us to use overdraft protection transfers from your share account
Transactions not counted against Reg. D limits
Transaction by mail
Transaction at an ATM machine
Transaction at any of our Branch Offices
Any deposit at any time
Following, are some examples of Reg. D and non-Reg. D Transactions.
|
Reg. D Transaction |
Not a Reg. D Transaction |
|
PCU transfer from Prime Shares (0), Sub Shares (10-14), Money Market (3), or Youth Shares (5)
|
Transfer from Prime Shares (0), Sub Shares (10-14), Money Market (3), or Youth Shares (5) requested by you in writing and mailed to the credit union |
|
Teller 24 transfer from Prime Shares (0), Sub Shares (10-14), Money Market (3), or Youth Shares (5) |
Teller 24 withdrawal by check mailed to you |
|
ACH (Automated Clearing House) debit from your share account to make a payment to someone other than Cedar Point |
Automatic (payroll) transfer from your share account to any share, share draft or loan account at Cedar Point arranged in advance to occur on a regular basis |
|
Transfer from your share account per a phone call made to a member service representative |
Transfer from your share account made in person at our branch locations |
|
Visa Check Card transaction which overdraws your share draft account causing us to transfer funds from your share account |
Visa Check Card withdrawal at an ATM machine |
|
Clearing a check which overdraws your share draft account causing us to transfer funds from your share account |
Clearing a check from your share draft account |
|
PCU or Teller 24 transaction to transfer funds from shares to share draft |
ATM transaction to transfer funds from shares to share draft |
|
PCU or Teller 24 transaction to transfer funds from shares to your loan or other accounts at Cedar Point |
PCU or Teller 24 transaction to transfer funds from your share draft account to your loan or other accounts at Cedar Point |
An easy way to remember:
A Reg. D transaction is a withdrawal from a savings account that you could complete at home.
Once you exceed the Reg. D limits the following will apply:
On PCU and Teller 24*
You will get an error message that the Reg. D limit has been reached and the transaction will not be processed.
When you call a Member Service Representative for your transfer*
The MSR will receive a message that states “…transaction did NOT post successfully…will exceed allowable Reg. D transfers” and the transaction will not post.
During a share draft or ACH post
The item will be returned and a $25.00 NSF fee charged.
During a Debit card post
Since we cannot return authorized debit card transactions, the item will post, however, you will be charged a $25.00 overdraft fee.
*These transactions can be completed at a Cedar Point Branch Office or any ATM.
You can
check at any time how many Reg. D transactions you have had during the current
month by contacting a member service representative
or clicking on the “Transfer” button on your PCU.
How can I avoid exceeding Reg. D limits?
Recurring electronic payments can be made from your checking account, which is a transactional account and not subject to Reg. D limitations.
Make sure you keep sufficient funds in your checking account to avoid overdraft transfers.
Open an overdraft line of credit to protect yourself instead of using overdraft transfers. • Make your transfers at a Cedar Point ATM or Branch Office.
This credit union is federally insured by the National Credit Union Administration.
Your savings federally insured to at least $100,000
and backed by the full faith and credit of the United States Government.
This page was updated:
January 18, 2008 14:02