Reg D - Reserve Requirements of Depository Institutions
Regulation 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 members may make from their savings or Money Market accounts using an audio response system (Telephone Teller), Online Banking, or automatic overdraft protection. Each member is limited to six (6) transfers/withdrawals per month from their savings or Money Market accounts, including pre-authorized payments/withdrawals or telephone and email requests to our Member Service Center. Regulation D affects savings and Money Market accounts but does not apply to checking accounts. Automatic overdraft protection from an AdvantageLine Line of Credit loan is not subject to this regulation. Furthermore, overdraft protection from a Ventura County Credit Union Line of Credit is FREE. There is no limit to the number of withdrawals/transfers a member may make from their savings account by mail, at an ATM or at a branch in person.
What types of transfers/withdrawals are limited by Regulation D?
Those where your physical presence IS NOT required. Transfers affected by this regulation include:
- Transfers made using Online Banking
- Transfers made using Telephone Banking
- 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)
What transactions are not affected by Regulation D?
- ATM transactions
- Transfer payments made to a VCCU loan
- Transactions done in person at a financial center (including shared financial centers)
- Transactions sent in by mail, Express Drop, or Night Drop
- Quest Bill Pay (which uses funds from your checking account)
What are my options once an account has reached its Regulation D limit?
You may complete withdrawals and transfers in person, by mail, or at an ATM.
I have authorized a merchant to automatically withdraw payments from my Savings 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. To avoid this situation, make automatic payments using something other than a Savings Account or Money Market account, 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 Quest Bill Pay to automatically send payments to the merchant, rather than authorizing the merchant to automatically withdraw payments.