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