June 10th, 2011

How Does Regulation D Affect You?

What is Regulation D?

Regulation D (Reg D) places a limit on the number of transactions you may make from a savings, money market or certificate account. Under Reg D you are allowed 6 transactions per month from these accounts.

Changes coming 10.1.2011

Seattle Metropolitan Credit Union will no longer allow transactions in excess of the 6 monthly transfers permitted by Reg D. Rather than charging a fee for transactions that exceed the limit, SMCU will no longer allow these transactions.

Why is SMCU making this change?

SMCU is required by Regulation D to reserve for accounts that are considered “transactional.”  Because a share or savings account is not considered transactional we must limit the transactions on these accounts to be in compliance with this important regulation.

Is this a new requirement?

No. This is not a new requirement for financial institutions, but to help stabilize the monetary system this regulation is now being actively enforced by our regulators.

How does this change benefit me as an SMCU member?

This change in practice benefits you because it eliminates the excess transaction fee that we previously charged for exceeding the limit, thereby saving you money.  Our branch representatives have been trained to help you plan transfers and payments so you can still easily access your funds while meeting the compliance requirements of Regulation D.  This change will also assist in stabilizing the monetary system by ensuring there is an adequate reserve of cash on hand.

Transactions impacted by Reg D are:

  • Transfers via online, telephone banking, or Contact Center representative
  • Overdraft transfers (made automatically to cover insufficient funds in other accounts)
  • Pre-authorized automatic, scheduled or recurring transfers (not including direct deposit)
  • Checks written from a Money Market account


Transactions NOT impacted by Reg D are:

  • ATM transactions
  • Telephone requests for checks mailed to members
  • Transfers made to SMCU loans
  • Transactions done in person at branch
  • Transactions sent via mail, Express Drop, or Night Drop
  • SMCU Bill Pay


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