On April 24, 2020, the Board of Governors of the Federal Reserve System issued an amendment to the Regulation D requirement that is adhered to by depository institutions. This removed specific numeric limits placed for transfers and withdrawals from savings deposits. These changes were designed to provide members and customers even more convenient access to their accounts, as well as to simplify account administration for financial institutions.

Most notably, the transaction limit of six remote transactions per month for savings deposit accounts was lifted with the 2020 update. Previously, after consumers reached the limit of six transactions, they were limited to accessing funds only through the ATM or a branch visit. While the six-transfer limit is no longer required under Regulation D, reporting to the Federal Reserve Board through form FR 2900 remains a requirement.

How the Reg D Amendment Continues to Benefit Credit Unions

The benefit to credit unions as a result of the Reg D Amendment applies to institutions and members alike. Credit unions can opt to lift any fees or restrictions on remote transactions for deposit accounts for members, but they are not required to do so. If they do opt to change fees or limits, they should review and update their disclosures and send a copy of the updated disclosures to impacted members.

Credit unions who partner with Synergent can contact Customer Service to request that the transaction limit be lifted, changed, or that fees be removed entirely.

“We recognize that each credit union has a unique strategy regarding access to savings accounts and we also know credit unions are always looking for new opportunities to generate interchange income,” said Rebekah Higgins, Synergent Payment & Fraud Consultant. “This regulation change can help credit unions encourage additional cardholders to conduct point of sale transactions resulting in increased revenue. We are excited about the latitude this provides credit unions to potentially expand card usage.”

Looking Ahead

The complete version of Regulation D can be viewed at federalregister.gov. If you credit union has questions regarding Regulation D, please contact Rebekah Higgins, Payments & Fraud Consultant for Synergent, at rhiggins@synergentcorp.com.