Regulation D

What is Regulation D?

Regulation D impacts the number of transactions allowed on Savings accounts* which are not intended to be transaction accounts. The Federal Reserve requires financial institutions to treat a savings account differently than a checking account. Savings accounts are intended to be used for savings goals and to have few withdrawals.

  • Regulation D applies to all financial institutions.
  • Regulation D places a limit on the number of automatic or preauthorized transactions you may make from your Savings account* per calendar month.
  • Checking accounts are deemed to be "transaction accounts," and have no transfer or withdrawal limitations.

Transfers from a Savings account* to another account or to third parties by preauthorized, automatic, online, or telephone transfer are limited to six (6) transactions per calendar month.

Types of transactions that fall within the six per month transfer limitation are as follows:

  • Overdraft protection (transfers to checking)
  • Telephone transfers to checking (made directly or by telebanking)
  • Online Banking (transfers to checking)
  • Electronic Fund Transfer (preauthorized withdrawals)

Excessive Transactions: For Savings accounts that continue to exceed the limitations, the regulation requires the Bank to remove or restrict these types of transactions or to close the account.

What Savings account transactions are not affected by Regulation D?

  • ATM transfers or withdrawals
  • Automatic payments made to Hicksville Bank loans
  • Transfers made in person
  • Deposits or transfers of any type into a Savings account

*Savings Accounts include: Personal or Business Statement, Insured Money Market and Power Savings accounts.