What is Regulation D?

Regulation D (Reg D) is a federal law that limits the number of transfers and withdrawals that you may make from Savings (Prime Share) and Club Accounts to a Checking Account or to a third party. According to Regulation D, you may not make more than six (6) pre-authorized, automated, or telephone transfers/ withdrawals from these accounts each month. Any transaction request that is received after you have reached your limit of six transfers or withdrawals must be rejected. The regulation was established to prevent consumers from using interest bearing accounts as transaction or checking accounts.

How does Regulation D affect my account?

Reg. D may affect your pre-authorized or automated transactions. Once you have reached your Reg. D withdrawal or transfer limit, funds may no longer be electronically transferred from your affected savings account.

Reg. D may affect your overdraft protection. After the sixth electronic withdrawal or transfer your savings account will not be available for further overdraft protection. This may cause checks to be returned unpaid and fees to be charged to your checking account.

Reg. D may affect your ability to move funds using Audio Response, requesting a transfer by a VECU representative over the phone, or using VECU Moneylink online account access. After the sixth withdrawal or transfer, the only way to access your funds will be in person at a branch, at an ATM, or by mail with an original signature. Additionally, you may request to withdraw funds from a Savings or Club Account over the phone via a personal check made out to you and mailed to your address on file.

What transactions are subject to Reg. D limitations?

• Transfers/withdrawals from Savings or Club Accounts using VECU Moneylink (online account access).
• Transfers/withdrawals from Savings or Club Accounts using Audio Response.
• Transfers from Savings or Club Accounts requested over the phone when calling VECU and speaking to a representative directly.
• Overdraft transfers (made automatically to cover non-sufficient funds in other accounts).
• Pre-authorized, automatic, scheduled, or recurring transfers/withdrawals from a Savings or Club account.

What transactions are NOT subject to Reg. D limitations?

• Transfers/withdrawals from a Savings Account made at an ATM.
• Transfers/withdrawals from a Savings or Club Account made in person at a Branch.
• Transfers/withdrawals from a Savings or Club Account sent in by mail with an original signature.
• Withdrawals from a Savings or Club Account requested over the phone via a check made out to the account holder and mailed to the address on file.

How can I avoid Reg. D Fees and Limitations?

• Apply for an Overdraft Protection (ODP) Line of Credit to cover overdrafts that occur after you have reached your limit of six (6) transfers from your Savings Account.
• Send your direct deposit to your Checking Account – not your Savings or Club Account. You may transfer money from your Checking Account to your Savings or Club Account without limits or fees because Checking Accounts are not subject to Reg. D.
• Avoid authorizing merchants to draft money from your Savings Account. Instead, use your Checking Account for these transfers because it is not subject to Reg. D limitations.
• If you think that you will need to transfer money from your Savings or Club account to cover Checking Account transactions, plan ahead and make one large transfer instead of several small transfers. Note: Each transfer counts as one transaction, regardless of the dollar amount transferred.
• Use an ATM to transfer funds within your account as these are not counted as Reg. D transfers.
• Use VECU Moneylink or Audio Response to monitor your savings and checking accounts frequently and balance your checking account on a regular basis. This will help limit the number of overdraft transfers from your savings account, which are subject to Reg. D limitations.