Transfer Limits in Digital Banking

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Have you ever received an error message when attempting to transfer funds from your savings account in digital banking, stating that you have exceeded the Federal Regulation D transfer limit? If you have seen this message and wondered what it meant, you are not the only one. This is a commonly asked question regarding digital banking, and as your trusted financial partner, we are happy to help you learn how to avoid exceeding this limit.

What is Regulation D?

Regulation D is a transfer limit set by the Federal Reserve, and states that digital banking users cannot perform any more than six (6) transfers per month from a savings account to a checking account or other deposit account. Since this limit is set by the federal government, it applies to all financial institutions, not just credit unions.

The limit exists to prevent members from using their savings account as a transaction account by limiting the number of transfers that can be made per month. After all, a savings account is intended to do just that: save the funds you have deposited into the account, not withdraw them.

How Can I Avoid Transfer Limits?

The best way to avoid exceeding the federal transfer limit is to use your checking account for transactions, since these accounts do not have limits on the number of transactions permitted per month. Use your checking account to receive your direct deposit so you won’t have to transfer those funds out of your savings account. Set up your ACH transactions and any recurring, scheduled, or other automated transfers to withdraw from your checking account.

Monitor your account activity within digital banking so you can easily review your transfer history and keep track of how many transfers you have made out of savings each month. Familiarize yourself with your monthly transaction cycle; know when your cycle starts and ends so you can stay on top of how many transfers you have made.

What Can I Do If I Reach My Limit?

Once you reach your six transfer limit, you will be unable to make any additional transfers from your savings account through digital banking. If you need to transfer funds from your savings account before the next monthly cycle begins, you will be still be able to make a transfer by going into a branch or visiting an ATM.

At Robins Financial Credit Union, our checking accounts are created to work for you. We offer a variety of account options so you can choose the one that will help make your money work harder. Open an account today online, over the phone or by visiting any of our branch locations.

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