News and Events
By Jim Holt, President and CEO
Federal regulations govern almost all operations within financial institutions. Occasionally, one regulation in particular will come under scrutiny by federal examiners who review the practices of banks and credit unions for compliance. This is the current case with Regulation D.
Here is a primer on Reg D to help you understand what it is and how it can affect you.
What is it? The purpose of Reg D is to regulate the level of monetary reserves maintained by a financial institution. It limits the number of withdrawals or transfers from each savings and money market to six per month per account. Checking accounts are not affected.
What transactions are limited?
- ACH withdrawals
- Automatic transfers to another deposit account at Mid American, including transfers made to Mid American checking accounts for overdraft protection
- Automatic transfers to a third party or another institution
- Telephone transfers, including those initiated by a phone call, fax or email through a Mid American employee or the telephone MATT system
- Online banking transfers
Are there transactions that are not limited? Yes, those transactions are deposits, ATM transfers between accounts, transfers you make in person at a Mid American branch, and automatic transfers to repay a Mid American loan. In the past, we allowed three free in-person transactions on Reg D-affected accounts with a $5 fee for additional withdrawals during a calendar month; to continue providing exceptional service, we are increasing the number of free in-person transactions to five.
What happens if a member exceeds the regulated number of transactions ? Financial institutions are required to take steps to prevent excessive transfers. At Mid American, we are implementing a sort of warning system that you are on the path to exceeding the limit. We will help monitor your accounts, advise you when the limit has been exceeded and explain other account options that would better fit your needs.
Are there other options? Yes, because we believe in helping our members keep more of their money and find the best solutions for their financial needs, here are six tips to avoid being affected by Reg D:
- Have your direct deposit sent to your checking account, which isn't subject to Reg D limitations.
- Have all ACH withdrawals and preauthorized debits withdrawn from your checking account.
- Plan ahead and make one large transfer from your savings or money market account instead of several small transfers.
- Use ATMs or perform transfers in person from your savings or money market accounts.
- Apply for or use your Mid American Visa credit card as the account from which to pay for overdraft protection transfers to avoid having these transactions count toward your allowable amount.
- Talk to a financial services representative to ensure your accounts are meeting your needs.
For those of you who need to change the way you handle accounts, we apologize for any inconvenience this causes. For those who have been following these practices already, thank you.
By Debbie Stang, Home Loan Officer
Your home is perhaps your biggest investment, and just like a car, it requires regular inspections and maintenance to avoid costly repairs or emergencies later. With the start of a new year, create a home maintenance calendar.
- Check and change, if necessary, your home air filter. Mark your filter with the date you replaced it for an easy reminder.
- Clean your garbage disposal. Depending on how heavily you use your disposal, this may be a more frequent chore. Here are a couple of cleaning suggestions: Grind frozen orange or lemon peels or use several ice cubes and ½ cup baking soda to remove buildup.
- Inspect your fire extinguisher to ensure it has adequate pressure.
- Test the auto-reverse feature on your garage door. Place a 2x4 on the ground to see if the door will reverse when the door hits the wood. Also check if the photoelectric sensors work by putting an inanimate object in front of them.
Test smoke and carbon dioxide detectors. If the alarm sounds, replace batteries and test again to ensure it's working or needs replacement.
- Check your HVAC system – air conditioner and furnace – before each seasonal use. This is a costly system to repair or replace so regular checks are necessary.
- Have a professional inspect your garage door and its tension spring, cable and track system.
- Deep clean your house. Most people time this with the fall and spring seasons and do thorough checks and repairs, indoor and out, as well, for things like chipped paint,areas of leaks, gutters and more.
- Vacuum your refrigerator coils. Refrigerators are big power users so do this to keep them running efficiently.
If you find you need any major repairs or renovations, remember that Mid American offers great rates on home equity loans and lines of credit. Click to find out more about home equity loans and our mortgage services.
By Steve Yokum, Financial Advisor, CUSA Financial Services, L.P.*
According to the Small Business Administration, there are nearly 26 million small businesses in America, creating between 60 to 80 percent of net new jobs.
Whether you are self-employed or have full- or part-time employees, there's a plan that's right for you and your business. You need to first consider the following: who will contribute, eligibility requirements,vesting, administrative responsibilities and the cost of the plan to both the business and plan participants.
Here are a few examples:
- Simple IRA: a savings incentive match plan for businesses with fewer than 100 employees. Key benefits are its simplicity, low cost and ease of administration. No required discrimination testing or government reporting.
- SEP-IRA: can be ideal for the self-employed person who wants a simple plan that allows discretionary, tax deductible contributions. This plan may require top-heavy testing requirements.
- 401(K) profit-sharing and individual plans: allows employee and employer contributions. A Solo 401(k) may allow owners to save more than with a SEP or Simple IRA because contribution limits are the same as regular 401(k) plans, allowing both employee and employer contributions.
With a number of variables involved in navigating a retirement plan, an experienced financial professional can be a valuable resource. Contact Steve Yokum at 316.722.3921, ext. 182, for a no-cost,no-obligation appointment today.
*Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (“CFS”), a registered broker-dealer (Member FINRA/SIPC) and SEC Registered Investment Advisor. Products offered through CFS are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. Mid American Credit Union has contracted with CFS to make non-deposit investment products and services available to credit union members.
CUSO Financial Services, L.P. (CFS) does not provide tax or legal advice. For such guidance, consult your tax and/or legal advisor.
By Emily Reinhardt, MoneyMatters.coop(Opens in a new window)(Opens in a new window)(Opens in a new window)(Opens in a new window)(Opens in a new window)(Opens in a new window)(Opens in a new window)(Opens in a new window)(Opens in a new window)(Opens in a new window)(Opens in a new window)(Opens in a new window)(Opens in a new window)(Opens in a new window)(Opens in a new window)(Opens in a new window)(Opens in a new window)(Opens in a new window)(Opens in a new window)(Opens in a new window)(Opens in a new window)(Opens in a new window)(Opens in a new window)(Opens in a new window)(Opens in a new window)(Opens in a new window)(Opens in a new window)(Opens in a new window)(Opens in a new window)(Opens in a new window)(Opens in a new window)(Opens in a new window)
- Saturday, March 18 | 9am-11am | West Branch 8404 W. Kellogg Drive, Wichita
- Saturday, March 25 | 9am-11am | NE Branch 2993 N. Webb Road, Wichita
- Saturday, May 6 | 9:30am-11am | Capitol CUSO Service Center | 1080 SW Wanamaker Road, Topeka