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What is Reg D?
To control the supply of
money available in the U.S. and financial institutions' reserve
requirements, the Federal Reserve Board created Red D and
account classifications. This is a Federal Regulation that
affects all financial institutions.
How does Reg D apply to me?
Reg D regulates
Savings Accounts
and Holiday
Clubs. The basic rule states that a depositor may
make no more than six (6) "covered" transfers or withdrawals
from the account in a calendar month. There is no limit on
"non-covered" transfers or withdrawals.
What are "covered" and
"non-covered" transactions?
COVERED (Counts
toward the Reg D limit of six)
-Preauthorized Transfer
(either to another account or to KCCU)
-Automatic Transfer
-Online Transfer
-Telephone Transfer (either
Audio Response or Office)
-Check to a Third Party
-Draft to a Third Party
-Debit Card to a Third
Party
-Similar Order Made to a
Third Party
NON-COVERED (Does
not count towards the Reg D limit of six)
-Transfers or loan payments
at KCCU
-Transfers or withdrawals
made to another of your own accounts or made payable to you if
made by: mail, messenger, ATM, in person
What happens if I reach the
limit of six?
If you are using this
account for overdraft protection on your checking account, the
transaction will be rejected, the check returned NSF
(non-sufficient funds) and you may be subject to the $20 NSF fee
plus any fees charged by whomever the check was written to. Even
if you have the funds available in your deposit account, once
the withdrawal limit of six (6) has been reached, no more of the
covered withdrawals can be made until the following month.
What can I do if I need to
take money from the account?
You are free to make
withdrawals via any of the non-covered methods, however,
automatic overdraft protection cannot occur.
If you have any additional
questions or concerns, please call 816.861.5700. |
