If we reclassify our statement savings accounts as Demand Deposit accounts, can we allow customers to exceed the 3/6 restrictions set forth in reg D? If this is allowed, can someone point me to where I can find the information. Thank you.

But you can't pay interest on demand deposits, so why offer statement savings at all? Why not just require your customers to use your existing demand deposit account?

The problem we are running into is that customers want to transfer money from their savings accounts to their checking account either through telephone banking or online banking and they're limitd to 6 per month.

I guess there isn't any other option but to remind them that they are limited to 6 a month and follow up with the letters and/or closing the account or making it non interest bearing.

Many of us have struggled with this over the years. There really are no good options. There's always the hope that congress will eventually loosen (or better yet, get rid of) the rule.

You could put them in NOW or ATS accounts, if they meet the ownership restrictions.

Without the limitations you would effectively just be paying interest on DDA accounts.

Has anybody heard where this issue stands in Congress this term? The last I heard the House had passed legislation to increase to 24 transactions per month. Anybody have an idea what the Senate is up to?

HR1375 may be what you are thinking about. It passed the House and is in the Senate. I have heard it is expected to pass there, but this has happened so many times before. Who knows.