Transfers in Online Banking…Regulation D Explained

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As a Seasons Federal Credit Union member, we want to keep you in the know. So today, we are going to answer a common question that members have related to transactions in Online Banking. Why do I get a fee for more than 6 transfers from my savings account per month? It’s not a Seasons Federal Credit Union exclusive rule, we promise. The reason is more complex, but the simple answer is because of a rule set by the Federal Reserve called, Regulation D.

What is Regulation D? 

If you have ever tried to make a transfer from your Seasons Federal Credit Union savings account through Online Banking and then receive a fee, you have probably reached your six (6) federal transfers limit. This limit is set by the Federal Reserve. The purpose of the regulation is to prevent people from using savings accounts like checking accounts. There are "transaction accounts," such as checking accounts, that offer unlimited transactions in virtually any form. Then there are "non-transaction accounts" that are intended for fewer transactions. Federal law limits the transactions made on "non-transaction accounts" such as savings and money market accounts.

Regulation D states that no more than six (6) pre-authorized, telephone, automatic, electronic (ACH) or check withdrawals or transfers in any combination are permitted in any calendar month from any “non-transaction” or savings-type account.

Can I do anything to avoid Regulation D fees? 

Yes. The main point to remember is that you should use your checking account, rather than your savings account for your direct deposit, scheduled/automated transfers, ACH transactions, etc., as the Regulation D restrictions do not apply to checking accounts.

We recommend you set up other overdraft protection sources, such as your Seasons Federal Credit Union Visa®, in addition to using your savings account, so that you have an alternative source in place in the event that you reach your Regulation D limit on your savings account.

What to do if you have reached the monthly limit of 6 transfers? 

Once you reach the Regulation D 6 transfer limit, you will be charged a fee if you make transfers or withdrawals from your savings account via Online Banking. If you reach the Regulation D limit but need to make an additional transfer before the next monthly cycle begins, you can visit a branch location where a Seasons FCU representative will be happy to assist you!


Now that you’re in the know, avoiding Regulation D related transfer issues in the future should be an easy adjustment. Don’t have a checking account? We can help with that. Check out all of our checking account options to see which account is best for you. Need additional help, or have more questions? Give us a call or stop by and speak with one of our member service representatives today.


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