Answer:
Reg D governs savings accounts and debit limitations on them. The rules are the same for consumer and non-consumers. Here's an excerpt from our Advanced Deposit Operations Manual on this topic:
Savings accounts require that the institution must reserve the right to require seven days’ notice of intended withdrawal. This requirement typically is disclosed in the account agreement and is usually found on the bank’s signature cards. Savings accounts are limited to six preauthorized withdrawals or transfers per month or statement cycle of at least four weeks. No more than three of these transfers may be made payable to third parties by check, draft, debit card, or similar means. Naturally, an institution may and often does, restrict specific account types to fewer transactions. There are no minimum balance requirements under the regulation to open or maintain this account; however, most institutions do require minimums. Finally, there are no eligibility requirements. It is important to remember that a violation of the debit limitations requires specific actions, beginning with notification of improper use of the account to eventual closing or transferring to eligible status.
First published on BankersOnline.com 12/17/07
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