Reg D Chart
Limitations on Withdrawals and Transfers from Savings Deposits
Reg D is all about correct calculation of reserves. To calculate reserves properly, you must classify accounts the correct way. For savings deposits, that means abiding by the restrictions on covered transfers and withdrawals that a customer may make. If a customer fails to abide by the limitations on more than an occasional basis, the account can no longer be considered a savings deposit under Reg D.

The term "savings deposit" includes both savings accounts and MMDAs.

The Basic Rule: A depositor may make no more than six covered transfers or withdrawals per calendar month or statement cycle. An institution may use a similar period of at least four weeks in lieu of either the calendar month or statement cycle. If the customer has the ability to write checks or make payments by draft or debit card transaction, those transactions are also in the overall group of transactions subject to the six-per-month limit (prior to 7/2/2009, those third-party payments were also restricted to three per month).

There is no limit (other than any you may set by contract) to the number of non-covered transfers or withdrawals. See below which transfers and withdrawals are covered (and therefore counted toward the limit) and which are not covered.

COVERED
Transfers and Withdrawals
NON-COVERED
Transfers and Withdrawals
Transfers or withdrawals made to another account of the same depositor at the same bank, if made by:
  • preauthorized transfer
  • automatic transfer
  • by telephone, including fax, or
  • with the bank's home or Internet banking service
Transfers for the purpose of repaying loans and associated expenses at the same bank;
Transfers or withdrawals to a third party (or to an account of the customer at another bank), if made by:
  • preauthorized transfer
  • automatic transfer
  • by telephone, including fax, or
  • with the bank's home or Internet banking service
Transfers from one account of the depositor to another account of the same depositor, if made by:
  • mail,
  • customer's messenger,
  • ATM, or
  • in person
Transfers to a third party (or to an account of the customer at another bank), if made by:
  • check
  • draft
  • debit card, or
  • similar order made by the depositor and payable to third parties
Withdrawals from the account [considered payments made directly to the depositor], if made by:
  • mail,
  • messenger,
  • ATM, or
  • in person

Withdrawals made by telephone via check mailed to the depositor.

Transfers into the account.



Copyright, Mary Beth Guard, 1997-2009. Updated 4/5/2012.