How Should I Count These Transfers?

Question:

I am trying to understand the Reg D guidelines. Is the use of the 24 hour telephone teller for transfers to transaction accounts and check withdrawals mailed to the member counted within the six allowed? How do I count transfers from a non-transaction to a transaction account made automatically to cover overdrafts?

Answer:

Telephone transfers count toward the 6 per month. If the customer contacts the institution and you mail them a check, this does not count. Transfers to cover overdrafts ("sweeps") also count toward the 6 per month.

[Editors Note:As of 7/2/09, the separate limit of three per month for checks, POS debit card transactions, etc., has been eliminated, and those transactions are now only subject to the 6/month limit that applies to other restricted transfers and withdrawals.]

First published on BankersOnline.com 8/14/06