What are the changes in Overdraft from Savings Option?
These changes known as Regulation D, is the federal ruling that classifies accounts at a financial institution and specifies the reserve requirement the financial institution must have on deposit with the Federal Reserve.

Why has Telhio decided to implement Regulation D on share and sub-share accounts?
For two very important reasons – first, to help Telhio members practice good savings habits and not treat accounts that by nature should be for savings as transaction accounts. Secondly, by reducing the dollars sitting idle at the Federal Reserve, Telhio can invest those funds in a variety of ways to improve member service, i.e., reduced loan rates, higher long-term savings rates, improved delivery of products and services through technology or face-to-face interactions, etc.

Do other financial institutions have Regulation D?
Yes. In a recent survey, Telhio was the only financial institution including other credit unions, savings banks, and commercial banks that had not put Reg. D in place.

When will Regulation D become effective at Telhio?
On July 2, 2002, Share Savings and other sub-share accounts will no longer be considered a transaction account.

How will I be notified that an account needs to be changed?
From December 2001 through June 2002, members will receive a number of communications designed to encourage account modifications. All members are encouraged to make changes to their accounts as soon as possible. December 2001 - General Notice to all members January – June 2002 - First Use Notices April 2002 - Second Notice to all members May-June 2002 - Abuse Notices for more than six (6) transactions

What if I decide to wait until June 2002 to modify my account?
It is very important to make modifications on your account as soon as possible to avoid any fees and embarrassment on returned checks, or to suffer inconvenience. Also, it will save the costs associated with producing and mailing numerous repeat mailings.

Will my share or sub-share savings account still be available for Overdraft Protection?
NO. Effective July 2, 2002, funds from Share Savings accounts including Holiday, It’s for Me, sub-share savings or other Telhio accounts will not be transferred to a member’s checking account when an overdraft occurs.

How can I protect my account from overdrafts?
Make sure you are keeping enough money in your Checking account to avoid an overdraft situation that was previously covered by the credit union automatically transferring funds from another Telhio Account. However, members are encouraged to apply at anytime for an Overdraft Protection line of credit (L7). How many pre-authorized withdrawals are permitted each month? Only six (6) pre-authorized withdrawals are permitted in any given month on Share Savings accounts. This includes auto deductions more commonly called ACH withdrawals or electronic debits for any payments or transfers to other accounts AND telephone transfers through the Sales & Service Center, Home Banking or Automated Telephone Access.

What happens if more than six (6) pre-authorized withdrawals try to post to my account after July 2, 2002?
All pre-authorized withdrawals attempted over the six (6) permitted in a given month will be rejected and all applicable fees will apply.

Would the six (6) pre-authorized withdrawals' restriction apply to the ATM, in person or mail?
No. You may make unlimited transactions using these methods of withdrawal. However, you are still subject to ATM usage fees as previously disclosed under Reg. E and Truth-in-Savings.

What should I do if I have a pre-authorized debit from my Share or other Sub-share Savings to pay for a loan?
You should consider redirecting this pre-authorized transaction by contacting the company with whom you authorized to initiate this monthly payment. Otherwise, if you are within the six (6) pre-authorized transactions monthly, you may chose to take no action at all.

What should I do if my payroll or other funds are directly deposited to my Share or other Sub-share Savings account?
Please notify your Direct Deposit Provider that these funds should be deposited to your Checking account, especially if you use these funds monthly to pay bills. Otherwise you may choose to take no action at all.

Can Telhio assist me with redirecting my payroll or other funds?
Telhio is considered a third party and cannot contact the originating institution and redirect your funds. It is between the member and the originating institution. However, if the loan is a Telhio loan please contact us at 614-221-3233 or talk to our staff at your nearest branch and we will provide additional service in this regard - with performance that earns your smile.

For more information on Regulation D, call 221-3233 (add 877 for toll-free).