Federal Regulation D (Reg. D) and Its Effect on Your Accounts

Regulation D impacts the number of transfers Charlotte Fire Department Credit Union may allow on your deposit (savings) accounts. The regulation was implemented by the Board of Governors of the Federal Reserve System, whose job is to ensure that financial institutions maintain adequate reserves for the funds they have on deposit. Regulation D affects you by limiting certain withdrawals and transfers that may be made from your Share Savings.


This is of particular importance to those members who use their Savings account as Overdraft Protection.

Regulation D FAQs

  • What is Regulation D?
  • What transactions are not affected by Regulation D?
  • What are my options once an account has reached its Regulation D limit?
  • If an account used for Overdraft Protection has reached its Regulation D limit, will overdraft requests be honored?
  • I have authorized a merchant to automatically withdraw payments from my Savings Account; do these count against my monthly limit?

1. What is Regulation D?

Federal Regulation D places a monthly limit on the number of transfers you may make from your Savings Accounts without your physical presence being required. You are allowed six such transfers per month. Transfers affected by this regulation include:

  • Transfers made using HomeTeller
  • Transfers made using Hotlines Audio Banking
  • Overdraft transfers (made automatically to cover insufficient funds in other accounts (see below)
  • Transfers made by a Member Service Representative on your behalf (if you are not present at the time of the transfer)
  • Pre-authorized, automatic, scheduled or recurring transfers

2. What transactions are NOT affected by Regulation D?

  • ATM transactions
  • Transfers made to CFDCU loans
  • Transactions done in person at a branch
  • Transactions sent in by mail or Night Drop with an original signature
  • CFDCU BillPay Plus (which uses funds from your checking account)

3. What are my options once an account has reached its Regulation D limit?

  • You may complete withdrawals and transfers in person, by mail, or at an ATM.

4. If an account used for Overdraft Protection has reached its Regulation D limit, will overdraft requests be honored?

  • No, if the Overdraft Protection account is a Savings Account. In that case, you will receive a notice by mail and incur an Insufficient Funds charge for every overdraft attempted beyond your monthly limit. However, if the Overdraft Protection account is a Line-of-Credit loan (which is not affected by Regulation D) the overdraft will complete normally.
  • Did you know that you can get a $500 Overdraft Line of Credit without a credit check? It only takes a few minutes and we can do it over the telephone. To set up an Overdraft Line of Credit and avoid those fees, give us a call today (704) 375-3950.

5. I have authorized a merchant to automatically withdraw payments from my Savings Account; do these count against my monthly limit?

  • Yes. These payments (which you might know as "ACH" or "EFT" transactions) follow Regulation D limitations. Any withdrawals attempted beyond your monthly limit will not be honored, and you will receive a notice by mail and incur an Non-Sufficient Funds (NSF) charge. To avoid this situation, make automatic payments using something other than a savings account, such as a checking account. Contact the merchant to arrange this change, and be aware that your request could take more than a month to go into effect. Alternatively, consider using CFDCU BillPay Plus to automatically send payments to the merchant, rather than authorizing the merchant to automatically withdraw payments.
  • Bear in mind that you must have a checking account to use BillPay.

REGULATION D IS A DIRECTIVE OF THE FEDERAL RESERVE, NOT OF CHARLOTTE FIRE DEPARTMENT CREDIT UNION.