Share Savings Limitations


Regulation D is a federal regulation that places certain limits on the number of transfers or withdrawals members can make from their share savings and/or money market accounts (non-transactional accounts). It ensures that financial institutions maintain adequate reserves for the funds on deposit. Please Note: Federal Reserve Regulation D is a directive of the Federal Government, not of PALCO Federal Credit Union, and applies to all financial institutions. Regulation D allows for up to a maximum of six (6) withdrawals/transfers during any statement period.

You may NOT make more than six (6) withdrawals or transfers per calendar month from your Savings Account. Transfers or withdrawals, for purposes of this limit, include preauthorized, automatic transfers (including but not limited to transfers from your savings for overdraft protection or for direct bill payments) and transfers and withdrawals initiated by telephone, facsimile, or computer. A preauthorized transfer includes any arrangement with us to pay a third party from your account upon oral or written orders including orders received through the automated clearinghouse (ACH/EFT). If you exceed the transfer limitations in any statement period, the transfer will not be completed, and you will be charged an Regulation D Excess Transaction Fee of $25 per transfer, effective May 1, 2018.


Which transactions count towards the limit?

Transaction(s) from Savings Accounts Limited to 6 per month* Unlimited
Transfer of withdrawal via pre-authorized debit (ACH/EFT X
Overdraft transfer from Savings to Checking X
Transfer or withdrawal using PALCO@Home Online Banking X
Checks from Member to a third party via Money Market account X
Transfer or withdrawl via Sprig Mobile Application X
Transfer or withdrawal using PAL Audio Line X
Transfer by calling PALCO Member Service Representative X
Withdrawals made by phone via check mailed to member X
Transfer or withdrawal made in person X
ATM withdrawal or transfer from savings account X
Transfer or withdrawal via mail request X
Deposit funds to Savings X

* Note that any combination of these transaction types will count toward the maximum of six(6) total transactions per month, per account. In accordance with Federal Reserve Board Regulation D, after the six (6) allowed transfers/withdrawals, you will be charged an Regulation D Excess Transaction Fee of $25 per transfer, and the item will be returned, effective May 1, 2018.


Frequently Asked Questions

What if my account has reached its Regulation D limit?

Additional withdrawals or transfers can be made in person, by mail, or at an ATM and not impact your Regulation D limit. However, transaction requests that count towards the Regulation D limit that occur

after the limit is reached, will not be allowed and will be returned as unpaid and you will be charged an Regulation D Excess Transaction Fee of $25 per transfer, effective May 1, 2018.

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

If the account used for overdrafts is a Regular Share Savings or Money Market Savings account, the request will not be honored. In that case, the item will be returned as unpaid, and you will be charged an Regulation D Excess Transaction Fee of $25 per transfer, effective May 1, 2018. If the account used for overdrafts is part of our Overdraft Privilege Program, Regulation D does not apply, and your overdraft requests will be honored.

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

Yes. These payments (also known as ACH or EFT transactions) are subject to Regulation D limitations. Any withdrawals attempted beyond your monthly limit will not be honored. To avoid this situation, consider contacting the merchant to have the automatic payment made from your checking account.


Tips to Avoid Regulation D Limits:

• Have your direct deposit sent to your checking account, as a transactional account it is not subject to Regulation D.

• Set up your pre-authorized payments or automatic withdrawals to be taken out of your checking account.

• Use PALCO@Home online banking, Sprig mobile app or PAL Audio to monitor your accounts frequently to plan your transfers and control the movement of your money.

• Limit transfers from your savings by making planned transfers in larger amounts instead of several smaller transfers.