Regulation D

Regulation D Explanation

Regulation D is a federal regulation with which all financial institutions, including PSCCU, must comply. Financial institutions are required to establish a non-interest bearing reserve account with the Federal Reserve based on the percentage of dollars the institution has in transaction accounts.

Regulation D separates accounts into three basic categories:

  • Time Deposits – share certificates
  • Transaction Accounts – checking accounts
  • Savings Deposits – regular shares and sub-savings

For an account to be classified as a savings account, financial institutions must restrict certain transfers and third party withdrawals from the account to six (6) per month.

Examples of limited and unlimited transactions are included in the table below.

Limited Transactions (count toward the Regulation D limit of six (6) per month) Unlimited Transactions (do not count toward the Regulation D limit)
Telephone transfers Deposits
Overdraft transfers Transactions at a Branch, including Shared Branch
Transfers made using Online Banking ATM transfers
Transfers made using Mobile Banking Transactions sent by mail or through the Night Deposit
Pre-authorized / ACH transfers Withdrawals resulting in a Cashier’s Check made payable to yourself
Automatic transfers between accounts Checking account transactions