Transaction Limitations

Limitations on Savings and Money Market Account
Transfers, Withdrawals, & Payment to Others
Also known as “Regulation D”

What is Regulation D?

Regulation D impacts the number of transactions allowed on a savings or money market account which are not intended to be transaction accounts. In other words, the Federal Reserve requires financial institutions to treat a savings account
differently than a checking account. Savings accounts are intended to be stablished for long term savings with few withdrawals.

  • Regulation D applies to all financial institutions
  • Regulation D places a monthly limit on the number of transactions you may make from your savings accounts and money market accounts
  • Checking accounts are deemed to be “transaction accounts” and have no such transfer or withdrawal limitations

During any calendar month, you may not make more than six (6) automatic or preauthorized transfers from a savings account or money market account.

The table below shows the types of transfers and withdrawals that are limited by Regulation D and those which are unlimited.

LIMITED TRANSACTIONS
Transfers and Withdrawals which “COUNT” toward the Reg D transaction limitations
LIMITED TO 6 PER MONTH

UNLIMITED TRANSACTIONS
Transfers and Withdrawals which “DO NOT COUNT” toward the Reg D transaction limitations

Transfers or withdrawals made to another account of the depositor at the same financial institution if made by:

  • Preauthorized, automatic, cheduled, or recurring transfers (also known as ACH transactions)
  • Transfers initiated by phone call, fax, or email through a bank representative
  • Transfers using online banking
  • Overdraft protection transfers (also known as a sweep to prevent checking account overdrafts)
  • Transfers to third parties by check, draft, or similar order
  • Transfers for the purpose of repaying loans at the same financial institution
  • Credit or transfers of any type into the account
  • Transfers made in person at a branch
  • Withdrawals made in person at a branch
  • Transfers made in person at an ATM
  • Withdrawals made in person at an ATM
  • Transfers or withdrawals sent in by mail
  • Night deposit transfers

Savings accounts include: M&M Savings, Silver Savings, Regular Savings, Gold Savings, and Kidz Club Savings.

Money Market accounts include: Money Market Fund and Super Money Market Fund.

Excessive Transactions: Transactions in excess of the 6 transfer/withdrawal limitations as described above. For customers who continue to exceed the limits after they have been notified by M&M Bank, the Regulation requires that your transfer/draft capabilities are taken away or the account be closed (or converted if a money market account) and the funds may be transferred to a checking account.

*It is suggested that payroll, social security, or pension type payments be direct deposited into a checking account rather than a savings or money market account to prevent Regulation D issues.

What You Need to Know When Transferring Money from
Your Savings Account or Money Market Account

Frequently Asked Questions

How many times can I transfer from my savings account to my checking account?

You are limited on the number of transfers that you may make from your savings account or money market account by Federal Reserve Regulation D (Reg D). This restriction includes a limit of six (6) transfers per month from a savings account or money market account at all banks or credit unions.

What happens when I reach the monthly transfer / withdrawal maximum?

M&M Bank will notify you in writing when you exceed the monthly maximum of six (6) transfers / withdrawals. If you exceed the monthly maximum of six (6) transfers / withdrawals for three (3) months in a 12-month rolling period, your transfer / draft capabilities will be restricted.

How long will my account be restricted?

Six (6) months. At the end of the six month restriction period, your account will be evaluated to determine if your transfer / draft capabilities will be reinstated.

How will I be able to transfer monies from my Savings Account or Money Market Account after my account has been restricted?

Once the monthly maximum of six (6) transfers / withdrawals has been reached, the account holder must conduct additional transactions at an ATM machine, in person at a branch, or by mail. 

What happens if my Savings Account or Money Market Account is being used for Overdraft Protection?

If your savings account or money market account is being used for Overdraft Protection and requires transfer of funds from an account that has used the six (6) allowed transactions per month, then overdrafts will not be covered and overdraft fees may be charged unless you have other available overdraft sources. 


Note: Transfers from an eligible line of credit to cover overdrafts are not affected by Reg D. 

Once all established savings and line of credit sources are exhausted, Overdraft Protection Program may begin to cover overdrafts and will assess a fee.

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Merchants & Marine Bank (M&M Bank) has no control over information at any site
hyperlinked to or from this Site. M&M Bank makes no representation concerning and is not responsible for the quality, content, nature, or reliability of any hyperlinked site and is providing this hyperlink to you only as a convenience. The inclusion of any hyperlink does not imply any endorsement, investigation, verification or monitoring by M&M Bank of any information in any hyperlinked site. In no event shall M&M Bank be responsible for your use of a hyperlinked site.

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Notice: Because there is a risk that information transmitted via Internet email could fall into the wrong hands, Merchants & Marine Bank suggests that confidential information, such as account numbers or social security numbers, not be transmitted via email. Instead, please contact Merchants & Marine Bank directly at your nearest bank branch.

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