Frequently Asked Questions

What is Regulation D (Reg D)?

Regulation D (Reg D) is a federal regulation that places a monthly limit on the number of transfers you may make from your deposit accounts (other than checking) without your physical presence being required.

How does Reg D affect me?

In any given month, you are limited to no more than six preauthorized, automatic, electronic or telephone transfers from a deposit account governed by Reg D.

Which accounts at Sound CU are considered deposit accounts?

Sound considers all Savings Accounts, Money Market Accounts, Certificates, and IRAs as deposit accounts. Collectively, these accounts are referred to as "Savings" in this FAQ.

Are checking accounts subject to Reg D?

No, checking accounts are not subject to Regulation D.

Which transactions are subject to the Reg D limitations?

Any transaction that is not done in person at a branch or ATM. The transaction must result in funds being taken out of a Savings. Examples of Reg D transactions include:

Transfers made using Online Banking
Transfers made using Telephone Banking
Overdraft transfers (made to cover insufficient funds in other accounts)
Transfers made over the phone by a Sound employee
ACH withdrawals
Automatic transfers between accounts
Checks written off a Money Market account

What types of transactions are not considered Reg D Transactions?

Deposits
Transactions made at a branch (including Shared Branching)
ATM transactions
Transfers made to Sound CU loans
Transactions sent in by mail or through the Night Deposit
Withdrawals resulting in a Cashier's Check made payable to yourself
Checking account transactions

I have more than one deposit account. Am I limited to a total of six transactions for all my deposit accounts combined?

You are allowed up to six Regulation D transactions per month for each of your deposit accounts.

Example: If you have three savings accounts, each savings account can have up to six Regulation D transactions.

If I have reached my Regulation D limit and still need to transfer funds, how may I do that?

You may perform unlimited transfers in person, by mail and by ATM.

Does Regulation D apply if I arrange for automatic debit withdrawals directly with a third party to pay for phone service, newspaper delivery, cable, etc.?

If you arrange for automatic withdrawals from your Savings for a utility or subscription service, etc., these transactions are impacted by Regulation D. To avoid this, please set up all automatic withdrawals to come out of your checking account. Or, take advantage of Sound's free Online BillPayer.

What about electronic deposits to Savings, such as tax returns or Direct Deposit?

Deposits to Savings are not monitored - the purpose of a Savings account is to put money into the account. Regulation D only affects withdrawals from Savings; therefore, we suggest that your Direct Deposit be posted to your Sound Checking account. Call, email, or visit a branch office today to set up your Direct Deposit preferences.

Does Regulation D apply to the use of Visa Check Cards at gas stations, grocery stores, restaurants, and the like?

When you use your Visa Check Card for a point of sale transaction at a gas station or retailer, the funds are debited from your Checking, which means that the transaction is not subject to Regulation D.

What can I do to make sure I do not exceed the limit?

Regulation D transactions must be limited to six (6) or less per month. Some options include:

Open a checking account if you do not already have one with Sound. Sound offers multiple checking accounts, including Free Checking.
Use your checking account for the majority of your withdrawals and transfers.
Plan ahead and make one large transfer instead of several small transfers. Each Regulation D transfer counts as one transaction, no matter what the amount. You may utilize an ATM to transfer funds between your accounts to avoid Regulation D.
Consider visiting a branch, using an ATM, or mailing your transfer request. These transfers are not limited.
Have your Direct Deposit sent to your Checking account. You may transfer excess funds to your Savings without limit.

To read more about this regulation and other regulations, please visit the Federal Reserve website.