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Regulation D Requirements

Resource Center

For Savings Accounts

Regulation D is a regulation for savings accounts created by the Federal Reserve Board that affects all financial institutions. This regulation was established to prevent consumers from using interest-bearing accounts as transactional or checking accounts. The basic rule limits the number of electronic transfers or checks to a combined maximum of six transfers per calendar month or statement cycle from a savings account.

The Bank of Salem monitors Regulation D violations on the calendar month cycle.

What happens if I reach the limit of six transactions or withdrawals per calendar month?

Regulation D requires the Bank of Salem to take steps to prevent excessive transactions in non-transactional accounts. Excessive transactions are transfers and/or withdrawals in excess of the six transfer/withdrawal limitations from your savings account. The regulation requires that either the account be closed or that the funds be transferred to a transaction account that the depositor is eligible to maintain for account holders who continue to violate these limits.

The Bank of Salem may charge a fee of $5.00 for each calendar month that the six transfers limit is exceeded. Other actions may include loss of internet transfer privileges or automatic transfers, if applicable.

Which transfer or withdrawal methods are limited to six per statement cycle?

  • Telephone requests for transfers
  • Online transfers
  • Pre-authorized, automatic, scheduled, or recurring transfers or withdrawals
  • Point-of-sale (POS) transactions
  • Fax requests for transfers or withdrawals

Which transfer or withdrawal methods are unlimited and don’t count towards the six-per-statement-cycle limit?

  • ATM transfers and withdrawals
  • In-person branch requests for transfers and withdrawals
  • Mail requests for transfers or withdrawals
  • Night-drop requests

How can I avoid reaching the transfer and/or withdrawal limit of six?

  • Consider performing transfers and withdrawals in person at our office.
  • Plan ahead and make one large transfer or withdrawal instead of several smaller transactions.
  • Keep appropriate balances in your checking account to reduce the number of overdraft transfers from your savings account.
  • Make insurance, utility or recurring payments electronically from your checking account instead of your savings account.
  • Set up automatic transfers from your checking account to other designated accounts instead of from your savings account.

What are my options once an account has reached its limit for the statement cycle?

You may request transfers and withdrawals in person at our office, by mail, night drop or at an ATM, as these transactions are unlimited.

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