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Federal Transfer Limits

Federal Transfer Limits

If you've ever gone to make a transfer from your DCU Money Market Account on Online Banking 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 Federal Reserves limits the number of times one can transfer money out of their savings account online in a month to six.

Why Savings Accounts Transfer Limits?

The purpose of the regulation is to 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 (which includes Online Banking, Easy Touch, and the Information Center) FROM savings accounts to 6 per month.

This number is an aggregate. For example, 3 transfers on Online Banking and 3 transfers on Easy Touch out of the same savings account in one month would bring you to the limit for that account.

Accounts affected/not affected

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

  • Online Banking automatic transfers,
  • ACH withdrawals,
  • check withdrawals, and
  • transfers made through the Information Center or Easy Touch.

What accounts and transfers are UNLIMITED?

The following involve UNLIMITED transfers:

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

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

What to do if you've reached the monthly limit

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 01752-9130.