Regulation D - Reserve Requirements Q & A ^top

What is Regulation D - Reserve Requirements?

It is a requirement that all depository institutions maintain a percentage of transaction account balances on deposit in non-interest earning reserves with the Federal Reserve Bank. Savings, Money Maker and Premier Money Maker are not transaction accounts and are not subject to the same reserve requirements, however, the type and frequency of withdrawal and transfer activity is restricted. Savings, Money Maker and Premier Money Maker Accounts permit no more than six pre-authorized, automatic or other transfers per month (of which no more than three may be made by check).

What accounts does it affect and how?

Savings Accounts: No more than 6 withdrawal transactions may be made in one month per savings account, done through Internet Banking, TEL-E$L, ACH or by a Tele-Banker.

Money Maker and Premier Money Maker Accounts: No more than 6 withdrawal transactions may be made in one month, done through Internet Banking, TEL-E$L, ACH or by a Tele-Banker; of the six, no more than three checks may clear in one month. If a member clears more than 3 checks in a month, the additional checks will be charged a $10.00 fee and will be paid on a case-by-case basis.

NOTE: ACH deposits do NOT count as part of the 6 withdraws transactions.

What transactions are counted as Regulation D?

  • Telephone (TEL-E$L) transfers from Savings, Money Maker or Premier Money Maker.
  • Tele-Banker transferring from Savings, Money Maker or Premier Money Maker.
  • Internet banking transfer from Savings, Money Maker or Premier Money Maker.
  • ALL MMA and PremierMMA checks not taken to a branch or deposited in an ATM.
  • Withdrawals to a third party if by pre-authorized, automatic, or telephone agreement.

What transactions are not counted as Regulation D?

  • ALL ATM transactions.
  • Money Maker and Premier Money Maker checks presented at a branch payable to "CASH" or the member.
  • ALL transfers to make ESL loan payments.
  • ALL transactions done at a branch.
  • Check card transactions, because check card is attached to reserved Checking Account.

What does ACH mean?

Automated Clearing House.

How does Reg. D affect ACH debit transactions?

ACH withdrawals from your Savings, Money Maker or Premier Money Maker are counted toward the monthly limit of 6 "convenient" withdrawals, but it is unlimited from your checking or Premier checking account.

Why does this not affect my checking account?

Checking Accounts are not affected by this regulation since they are considered transaction accounts.

Why can I go to the ATM and it doesn't count towards the 6 transactions per month?

Only transactions that a member can perform without leaving their home are affected by this regulation (convenience).

What are my options once my account has reached the transactions limits?

Once a member has reached the transaction limit on their Savings, Money Maker or Premier Money Maker account, they may only complete withdrawals and transfers in person, by mail or at an ATM.

What will happen if I exceed my sixth transaction and an ACH debit tries to clear the same non-transaction account?

If an ACH withdrawal is the 7th transaction on a non-transaction account (Savings, Money Maker or Premier Money Maker), it will be returned and ESL will send you a notice.

How can I switch my ACH from my savings to my checking account?

Just call your ACH originator (who is not ESL) and ask for the paperwork to change the withdrawal from your savings to your checking account.

How long will it take to change my ACH from my savings to my checking account?

It depends on the process time of the ACH originator. You should expect at least one-month lead time from the change request.

How many ACH withdrawals can I have on my savings account (includes MMA) and/or checking account and still be in compliance?

You can have six ACH withdrawals from your Savings, Money Maker or Premier Money Maker per month as long as you make no other TEL-E$L, Internet, Tele-Banking transfers (checks if MMA or Premier MMA) and unlimited transactions from your checking account.

Will I be notified if an ACH withdrawal is returned on my account?

ESL will send a notification letter when an ACH withdrawal has been returned because you have exceeded your transaction limits on your Savings, Money Maker or Premier Money Maker.

Does ESL offer any thing in place of ACH transactions?

Yes, Internet Bill Pay Service on checking accounts.