1.      Regulation D controls reserve requirements for Insured Institutions.  Since Tower is an insured institution, they are governed by Reg D. 


2.      Regulation D defines the categories of accounts and sets the amount of funds required to be placed in reserve for each account category: Share Certificates, Savings Accounts, Money Market Deposit Accounts (MMDAs) and Transaction Accounts (Demand or Checking Accounts).


3.      Because there are reserve requirements for Savings Accounts, Reg D limits the number of pre-authorized transfers that can occur during a calendar month from any savings account.  (Savings accounts here at Tower include Prime Share, Club, and Money Market Accounts.)


       6 pre-authorized transfers may be conducted per account per 4 week* period.  Pre-authorized transfers include:


·         Telephone Transfers (from one account at Tower to another)

·         Payments to Third Parties (outside of Tower)

·         Overdrafting (automatic transfer of funds from savings to cover negative status in another account, such as a checking)


**Note:  If the account has check writing privileges such as our Money Market Account, 6 of these transfers can be made by check  per 4 week period.

 *Most financial institutions administer the 4-week period as a monthly period.  At Tower, we use a calendar month


       If an account exceeds the limitations permitted by Reg D, transactions can be returned, the account charged and if the activity continues the account must be closed and transferred to a transaction account (checking).


       An unlimited number of transfers can be made:


·         In person

·         By ATM

·         By Messenger

·         By Mail

·         By Phone (but only when the phone withdrawal results in a check      being mailed)

·         For Loan Payments within Tower – regardless of how the transfer to make payment is made.