Understanding Regulation D

The Basics

Federal Regulation D ("Reg D") limits the number of transfers from your deposit accounts that you can make without your physical presence being required.

• Deposit accounts include Share Savings, Club Savings, Youth Share Savings and Money Market Savings Accounts.
• You are allowed only six such transactions per deposit account per month.
• Any such transactions beyond those six will not occur.
• Reg D is a federal regulation which all financial institutions must enforce.

Transactions Limited by Regulation D

• Transfers made using Online Banking or Mobile Banking
• Transfers made using an Automated Telephone Teller (GABBY)
• Overdraft transfers (made automatically to cover insufficient funds in other accounts)
  

  Keep in Mind: If an account used for Overdraft Protection has reached its Regulation D limit, overdraft transfers will not occur. This will result in the assessment of Overdraft Privilege fees and/or NSF fees.

• Transfers made by a Member Service Representative on your behalf (via telephone, Secure Mail in Online Banking, etc)
• Pre-authorized*, automatic, scheduled or recurring transfers

Transactions not affected by Regulation D

• ATM transactions
• Transactions done in person at a branch
• Transactions sent in by mail or Night Drop
• Payroll Allocations
• LANCO's Bill Payer (which uses funds from your checking account)
• Transactions made by telephone instruction to a Member Services Representative that result in a check being mailed to the member

Tips for Managing Transactions Under Regulation D

1. Open a checking account at LANCO and make payments via this account.
2. Plan ahead to make one large transfer instead of several small transfers. Each regulated transfer counts as one transaction, no matter what the size.
3. Do not authorize anyone to make an ACH withdrawal from your savings account; instead, set up the withdrawal from your checking account which has unlimited ACH withdrawals.
4. Balance your checking account periodically. This will help you to limit the number of overdraft transfers from your savings account.
5. Contact LANCO to discuss additional overdraft protection options.
6. Plan ahead to make transfers: 1) At a branch, 2) Using an ATM, or 3) By mailing us your request

*A “preauthorized transfer” includes any arrangement by us to pay a third party from your account upon written or oral instruction (including an order received through an automated clearing house (ACH)) or any arrangement by us to pay a third party from your account at a predetermined time or on a fixed schedule.