Regulation D

What is Regulation D?

Regulation D is a Federal Reserve Board regulation designed to regulate the level of reserves a financial institution is required to maintain based upon the balances it has in its transactional accounts, such as Checking Accounts.  To aid in this directive, Regulation D places limits on the number of certain types of withdrawals from non-transactional accounts, such as a Savings or Money Market Account to make the account less liquid thereby allowing no need to reserve against them.

How does Regulation D Affect Me?

Regulation D restricts members to six (6) transfers/transactions from a savings or money market account per calendar month based upon the type of transaction requested and method used to request.

Are All Banks and Credit Union's Required to Follow Regulation D?

Yes, all financial institutions are required to abide by Regulation D and limit the number of transactions from non-transactional accounts to six (6) per calendar month.

Transactions Limited by Regulation D

Any combination of the following transactions count towards your six (6) transfer limit per calendar month:

  • Any transfer from your savings or money market account to any other LFCU account that is made through any of the following services:
    • Online and Mobile Banking
    • Telephone Banking
    • Fax
    • Overdraft transfer to checking
    • Transfers made by telephone (call to member service rep)
    • Debit card, or similar order payable including wires to third parties or another financial institution
  • Any pre-authorized automatic withdrawals and any check to a third party from your savings or money market share

Transactions NOT Limited by Regulation D

The following transactions are not limited by Regulation D:

  • Transfers into the account
  • Transfer requests to repay the member’s loans and associated expenses at the credit union
  • Transfers to another account of the same member at the same credit union or withdrawals directly to the member when:
    • Request is made by mail or messenger; or at an ATM
    • Request is made in person at a branch office
    • Request is made by telephone, where the transaction results in a check mailed to the depositor

Helpful Suggestions

  • Set up pre-authorized automatic withdrawals from your checking account which has unlimited withdrawal limits.

What can be done to avoid future Regulation D violations?

  • Have your direct deposits made to your checking account which is not subject to Regulation D.  You can make unlimited transactions from your checking account
  • Use your checking account for all pre-authorized payments (insurance, utilities, gym membership etc.)
  • Plan ahead and make one large transfer from your savings account instead of several small transfers
  • Monitor the number of withdrawals made from your savings account(s)
  • Consider visiting a branch or using an ATM to perform your transfers as these types of transactions are not subject to Reg D

For more information, please contact a Member Services representative at 717-272-2210


You are allowed up to six Regulation D transactions per month for each of your deposit accounts.

Example: If you have two savings accounts, each savings account can have up to six Regulation D transactions.
In order to avoid additional cost and embarrassment of returned checks, please keep sufficient available funds on deposit in your checking account and establish payments to third parties from your checking account.