Federal Transfer Limits (Regulation D)

If you've ever gone to make a transfer from your DCU Money Market Account on PC Branch and gotten an error message, you've probably run afoul of the Federal Transfer Limit. This limit is set by Federal Reserve Regulation D. The purpose of the regulation is prevent people from using savings accounts like checking accounts. The Federal Reserve, the independent U.S. government agency responsible for steering the U.S. economy and preventing inflation, monitors the amount of money in circulation – the money supply. Money in checking accounts is a key component of the money supply.

Reg. D, under which DCU accounts fall, requires financial institutions to limit phone line transfers from savings accounts to 6 per month. PC Branch, Easy Touch, and the Information Center are considered phone line services. This number is an aggregate. For example, 3 transfers on PC Branch and 3 transfers on Easy Touch out of the same savings account in one month would bring you to the limit for that account.

The limit applies to transfers out of savings-type accounts such as Savings Account, Money Market, Holiday Club, and Member Described shares when made electronically or by phone line, fax, or Audio Response*. You are limited to 6 such withdrawals per month. The limitation applies to things like PC Branch automatic transfers, ACH withdrawals, and transfers made through the Information Center or Easy Touch. Overdraft transfers from your Savings Account to your Checking and Money Market Checks are limited to 3 per month and count towards the total limit of 6.

Transfers out of savings accounts to loans at DCU, transfers into savings accounts, and transfers into or out of checking accounts are unlimited.

If you've reached the limit, you'll be locked from further phone (electronic) transfers. If you need to make one or more before the end of the month, you can visit a branch location, a DCU ATM, or mail a written request with your account number, instructions, and signature to DCU, 220 Donald Lynch Boulevard, PO Box 9130, Marlborough, MA 01754-9130.

*Transfers made in person at a branch, by mail or at an ATM are also unlimited.

© 2008. Digital Federal Credit Union