Tips to avoid Regulation D Excessive Withdrawals UnderstandingUnderstanding

 Direct Deposit payroll directly RegulationRegulation DD into checking account. Unlim- ited withdrawals may be made from checking accounts.  Direct ACH and preauthorized debits to be deducted from a checking account instead of a .  Make one big transfer from savings instead of several small transfers.  Make withdrawals and trans- fers by using the Unlimited allowances listed on chart included.*  Apply for an Ozark Federal Credit Union Line of Credit. Line of Credit transfers DO NOT count as Reg. D transfers. Main Branch:  Apply for an Ozark Federal 2438 Katy Lane Credit Union . Poplar Bluff MO 63901 Unlimited debit card www.ozarkfcu.com withdrawals and transfers may be made at ATMs. **Additional fees may apply. See Phone: 573-686-7221 Credit Union Fee Schedule for Fax: 573-686-1949 additional fees. Foreign ATMs E-mail: [email protected] may charge a fee for transfers even if money is not withdrawn. checking accounts, demand deposit accounts, automatic transfer service accounts, and tele- What is phone transfer accounts are all transaction accounts. Any time deposit or savings account that Regulation D? fails to meet the Regulation D definitions will be classified as transaction accounts and be sub- ject to reserving.

Reserve Requirements for Depository Institutions (12 C.F.R. 204, Regulation D) RESTRICTIONS NECESSARY ON TRANSFERS OR WITHDRAWALS is a Board regulation that limits the number of preauthorized FROM CREDIT UNION SAVINGS ACCOUNTS TO KEEP THE withdrawals and transfers from a savings ACCOUNTS FROM BEING CLASSIFIED AS TRANSACTION ACCOUNTS account or . The regulation applies to all United States *Unlimited withdrawals *Unlimited transfers Up to six withdrawals or banking institutions offering such ac- permitted when: permitted when: transfers permitted per counts. month – when:  Made in person  Made between the ac- counts of the same mem-  Made by telephone, fax,  Made by messenger ber AND made in person, or personal computer and When was Regulation D passed?  Made by a letter request by messenger, by mail or payable to a third party considered the function- at an ATM  Made by telephone, fax al equivalent of the  Made by the member to or PC to another account This 6 withdrawal limitation is part of the member coming into pay a loan the member of the member at the Federal Reserve's Regulation D require- the credit union) has with the credit union credit union ments, commonly called “Reg. D”. Reg. D  Made by telephone, fax  Made by preauthorized, was enacted as part of the Securities Act or PC, if a check payable automatic or bill-payment of 1933 in the aftermath of the 1929 to the member is mailed arrangement for transfer stock market crash and was part of the to the member to the member’s other New Deal.  Made using an ATM account(s) at the credit union or to a third party Transaction Accounts

Regulation D defines transaction ac- counts as those accounts that allow un- Automatic transfers from savings to checking for overdraft protection DO COUNT as a Reg. D limited third-party transfers and do not transaction. impose early withdrawal penalties The automatic transfer will NOT occur if the Reg. D transaction limitations have been met. That [§204.2(e)]. Share draft accounts, means that the item will be returned for non-sufficient funds and will incur a NSF fee per item.