Regulation D

What is Regulation D (aka reg D)?

To control the supply of money available in the U.S. and financial institutions' reserve requirements, the Federal Reserve Board created Reg D and account classifications. This is a Federal Regulation that effects all financial institutions.

How does the Regulation affect me?

Reg D regulates savings accounts (including all types of savings, primary savings, sub-shares, money markets and holiday clubs). The basic rule states that a depositor may make no more than six 'covered' transfers or withdrawals from the account in a calendar month. There is no limit on 'non-covered' transfers or withdrawals.

What are "covered" transactions?

The following transactions are covered under the Regulation. The covered transactions are aggregated together; no more than 6 covered transactions can be conducted through a share savings account in any month. Covered transactions include:

  • Pre-authorized transfers from a share savings account (either to an account at another financial institution or to a USPS FCU account)
  • Online transfers through Virtual Branch (Home banking or Internet banking)
  • Telephone transfers (through QUE or over the phone with a USPS FCU service representative)
  • ACH debits
  • Automatic overdraft transfers to cover items in the checking account (checks, drafts, debit cards, ATM withdrawals, or similar orders)

What are "non-covered" transactions?

The following transactions are not covered and are not limited by the Regulation:

  • Transfers to loans and/or visa (payments) at USPS FCU
  • Transfers from a USPS FCU Overdraft Line of Credit (loan) to your checking
  • Transfers made to another account that are done in person, by mail (signed), at an ATM
  • Automatic transfers from a share savings to pay uncollected payments, uncollected fees or negative balances in one of your accounts at USPS FCU

What happens if I reach the limit of 6?

Once the limit is reached, all 'covered' transactions will be rejected and subject to the Credit Union's NSF fee and possibly the other institution's fee (debit card transactions are guaranteed and will be processed with the applicable NSF fee). Members who qualify for Courtesy Pay (and have not opted out) will have their items paid (within the courtesy pay limits) and the courtesy pay fee applies. This means that even if you have the funds available in your savings (deposit) account, once the withdrawal limit of 6 is reached, no more covered withdrawals can be made until the next month.

What can I do to avoid fees?

  • You can make 'non-covered' transfers once your regulation limit of 6 covered transactions has been met. To avoid fees this must be done prior to any returns or courtesy pay items are paid and fees assessed.
  • You can sign up for e-Notifications through Virtual Branch to be notified by email when an overdraft has been protected by a transfer from your savings account.
  • You can apply online for an overdraft Line of Credit. Once approved you can elect to have funds overdraft from the line of credit first then the savings or vice versa.

If you have additional questions please e-mail us at uspsfcu@uspsfcu.org, call us at 301-856-5000 or 800-877-7328 (800-USPS FCU) or stop by any of our branch offices.