“It’s my money … Why can’t I take it out at any time? I should be able to transfer it when I want to.”
This is one of the most often-asked questions we hear from our members. Sometimes members find that they cannot make withdrawals or transfers from their savings or money market accounts—leaving them feeling confused and frustrated as a result. So why is this happening?
When a member contacts us for this reason, we often find that the member is attempting to transfer or withdraw funds from their savings or money market account for the seventh time within a statement cycle. To help answer your questions, we’d like to give a little further explanation about something called “Regulation D,” also known as “Reg D.”
Regulation D is a Federal Reserve Board regulation that limits the number of transfers and withdrawals that can be made from savings and money market accounts through specific transaction channels. All financial institutions must comply with this regulation. Here are some more frequently asked questions, and their responses, to help familiarize you with the details of Reg D:
What is a statement cycle?
The phrase “statement cycle” refers to the starting and ending date of when your monthly statement is generated.
Under Reg D, how many transfers/withdrawals can I make from my savings/money market account within one statement cycle? What types of transactions does this apply to?
You can make up to six transfers and/or withdrawals per statement cycle when using Internet & Mobile Banking*, Magic*Touch, the Contact Center, point-of-sale terminals, cleared checks from a money market checking account, overdrafts, automatic transfers and preauthorized debits. So when you attempt to make the seventh transfer or withdrawal via any of these methods within a single statement cycle, Reg D will prevent you from completing the transaction.
What if I need money from my savings or money market account after the Reg D limit is reached?
In order to complete the transfer or withdrawal from your savings or money market account once the Reg D limit has been reached, you will need to visit a VyStar branch or ATM, where we will gladly assist you. You will not be able to request a transfer through the Contact Center.
Why does this regulation only affect savings and money market accounts?
These types of accounts are considered to be non-transactional accounts that are meant for saving money. As mentioned above, all financial institutions must comply with Regulation D, which has been in effect for many years.
For more information about Reg D, please contact VyStar or visit the Federal Reserve website.
*Wireless provider text and data rates may apply.
The content provided in this blog consists of the opinions and ideas of the author alone and should be used for informational purposes only. VyStar Credit Union disclaims any liability for decisions you make based on the information provided.