Regulation D Notice | Smart Financial

    Regulation D Notice

    Notice for Smart Financial Credit Union Members



    Regulation D Notice
    The Credit Union tries to always accommodate our members’ requests for transfer from one account to another. Our goal is to allow you as members as much freedom as possible in accomplishing your personal financial objectives. There are rare occasions when the laws applicable to the operation of this credit union conflict with your expectations. One such law comes from the Federal Reserve and is designated as Regulation “D”.

    Federal Regulation D impacts the number of transactions Smart Financial Credit Union may allow on your deposit accounts (including savings and money market accounts). The regulation was implemented by the Board of Governors of the Federal Reserve System, whose job it is to ensure that financial institutions maintain adequate reserves for the funds they have on deposit.

    Reg. D states:
    During any statement period, you may not take more than six (6) withdrawals or transfers to another credit union account of yours or to a third party. Withdrawals or transfers include: preauthorized or automatic transfers (such as overdraft protection transfers or bill payments deducted directly from your savings account), telephonic transfers (telephone, online or mobile banking) and transfers by check, draft, debit card or similar order to a third party.

    How will Reg. D affect your account?
    Effective February 1, 2013 Smart Financial Credit Union will be making changes to your savings and money market accounts in accordance with Federal Reserve Board Regulation D.
    Regulation D requires that no more than six (6) electronic transactions be made from your savings and money market accounts per month. Electronic transactions are defined as: transfers between accounts at Smart Financial Credit Union or to other institutions when made by telephone, fax, online banking, automatic or preauthorized bill payments including ACH; automatic debits; or automatic transfers to cover an overdraft in your checking account. There is no limit to in-person transactions, ATM withdrawals, or requests for check withdrawals made payable to you via telephone or home banking.

    THIS DOES NOT APPLY TO YOUR CHECKING ACCOUNT.
    These are the transactions that will be rejected or denied if over the limit of 6 per month/statement cycle:

    • Withdrawals by Check
    • Electronic Checks
    • Over the Counter Checks
    • Bill Payment Withdrawals
    • Electronic (External) Withdrawals


    However, if you have more than 6 (six) debit card transactions during a statement cycle; we will close your card.

    To help you understand the Reg. D Savings account transaction limitations, and to avoid excess activity charges, please review the following information:

    Non-Limited Transactions

    • Deposits
    • ATM Cash Withdrawals and transfers
    • Withdrawals made in person or by mail
    • Withdrawals made in person or by mail

    Limited Transactions

    • Checks, Point of Sale transactions or debit card purchases from your savings account
    • Automatic transfers to another deposit account at SFCU
    • Automatic transfers to a third party or another institution
    • Telephone transfer
    • Online banking transfers

    THIS REGULATION DOES NOT APPLY TO YOUR CHECKING ACCOUNT.
    What can you do to make sure that the limit is not exceeded?


    • Utilize your checking account for as many transactions as you can. There is no limit the number of transactions in a checking account.
    • Ensure your direct deposit is being deposited into your checking account
    • Ensure all direct debits (i.e. gym membership, utilities, childcare, etc.) are being withdrawn from your checking account
    • Use an ATM to transfer funds between your accounts. These are not counted as Reg. D transfers.
    • Keep sufficient funds in your checking account to avoid overdraft charges


    REGULATION”D” IS A DIRECTIVE OF THE FEDERAL GOVERNMENT, NOT YOUR CREDIT UNION. ALL FINANCIAL INSTITUTIONS ARE SUBJECT TO THIS REGULATION.

    For additional information call our Member Service department at 713-850-1600 or visit a branch to speak with one of our qualified Financial Service Specialists.

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