What is Regulation D/Truth in Savings?

Regulation D is a federal rule that puts a limit of six transactions per month on certain transactions moving money out of your savings account. If you go over the limit, the financial institution can charge you a fee, close your account or convert it into a checking account. Regulation D is in place to ensure banks have the proper amount of reserves on hand and also to help people use their savings accounts for its intended purpose; to save their money.

As Long Island continues its re-opening process, we are excited that we too have been able to welcome you back in our branches. Although we may all be wearing masks to protect each other, you can be assured that we are smiling underneath, as we are very happy to see you again.

As we all work towards this “new normal”, we will be continuing some of the positive changes we made to provide you with increased access to your funds when COVID-19 began. This includes maintaining our current $1,000 per day ATM withdrawal limit (up from $600), allowing members to deposit any check under $10,000 (formerly $5,000) using our mobile deposit service, and waiving any penalties should members need to break their Certificates regardless of maturity. We will, however, be reinstating the excess savings transaction limits, formerly known as Regulation D, which limits the number of preauthorized, automated telephone, or electronic transfers or withdrawals from savings accounts to six per month. The excess savings transaction limits are intended to discourage the use of savings accounts as checking accounts. These limits will be reinstated September 1st, 2020, and will impact Share Savings, Elements Teen Share, Dollar Dog Kids Share, Special Purpose, Money Market, Super Saver, IRA Savers Dividend, Tuition Builder, Business Money Market, and Business Savings accounts. You can avoid incurring this fee by using a Jovia checking account for automatic debits and withdrawals or by anticipating your cash needs each month and transferring or withdrawing larger amounts from your savings less frequently.

If you don’t already have a Jovia checking account, we’re here to help. Jovia offers both personal checking and business checking accounts to fit your financial needs.

The Truth in Savings Act is a federal that requires financial institutions to clearly disclose their terms of interest and fees when you open a new savings account or CD. The interest rates, Annual Percentage Yield (APY), and fees associated with an account must be disclosed so that the consumer is able to make an educated comparison between potential accounts at different institutions.

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