Regulation D

Any transaction not done in person at a branch or ATM and that results in funds being taken out of a savings account may be subject to Regulation D. Examples of affected transactions include:

  • Transfers made using Online and Mobile Banking
  • Transfers made using Telephone Banking
  • Overdraft transfers (made to cover insufficient funds in other accounts)
  • Transfers made over the phone with a Sound employee
  • ACH withdrawals
  • Automatic transfers between accounts
  • Checks written off a Money Market account

Regulation D only affects preauthorized, automatic, electronic or telephone transfers. If you reached your limit on these types of transactions, you may still perform unlimited transactions in person, by mail, or at an ATM.

Regulation D transactions must be limited to six (6) or less per month. To avoid this limit, here are some suggestions.

  • If you don’t already have one, open a checking account. Sound offers multiple options, including Free Checking.
  • Use your checking account for the majority of your withdrawals and transfers.
  • Plan ahead and make one large transfer instead of several small transfers. Each Regulation D transfer counts as one transaction, no matter the amount.
  • Consider visiting a branch, using an ATM, or mailing your transfer request. These transfers are not limited.
  • Have your direct deposit sent to your checking account. You may transfer excess funds to your Savings without limit.

Regulation D is a federal regulation that limits the number of preauthorized, automatic, electronic or telephone withdrawals or transfers from the following account types to six per month per account. It does not affect any transfers or withdrawals on these account types made in person at a branch or ATM.

  • Savings accounts
  • Money market accounts
  • Certificate accounts
  • Individual Retirement Accounts (IRA)

If you do exceed this limit within a month, your transaction may be refused or reversed, and your account may be subject to a fee or closed.

Checking Accounts

We recommend contacting us prior to traveling outside of Washington State.  Visa’s fraud prevention systems may block debit and credit card transactions made outside of Washington.  If you contact us before your travels, we can place notes on your cards alerting Visa to your pending activity and preventing your cards from being blocked while you are traveling.

If you know the current PIN you may call 1.855.477.1141, option 3, to change the PIN.   If you’ve forgotten your PIN you will need to call us or visit a Sound branch to have a new card ordered.  There is no way to recover your current PIN if it has been forgotten.

We do not have access to debit and credit card PINs.  To protect members with lost or stolen cards, cardholders must know their current PIN in order to change that PIN.  If you’ve forgotten your PIN, you will need to call us or visit a Sound branch to have a new card ordered.  There is no way to recover your PIN if it has been forgotten.

Sound savings, money market, checking, IRA and certificate accounts are insured by the National Credit Union Administration (NCUA) up to $250,000. Additional coverage may be available based on account structure and number of owners on accounts. For more information, visit the NCUA website.

1099-INT forms are sent out only to those members whose total interest earned for the year was $10.00 or more.  If the total interest you earned was less than $10.00, no interest form would have been sent to you.  Your Year-to-Date (YTD) interest information is always available on your December statement(s).  A YTD summary for interest dividends earned will be listed for each interest-earning deposit account.

If you did earn over $10.00 in interest for the year and still have not received your 1099-INT, please contact us.

Your account number can be found as part of the MICR number at the bottom of your checks (begins with 1, after the routing number 325183220, and continues up to the check number). If you do not have checks, please call the Contact Center during normal business hours.

Note: For security reasons, we cannot send your account number via email.

Once ordered, your debit card should arrive at the address on file within 7 to 10 business days.

You can order checks at any time online, at a branch, or by calling our Contact Center.

Mobile Pay is available on all Sound cards, including debit cards attached to your checking account.

For more information on Mobile Pay, visit our Mobile Banking page.

Automated Clearing House (ACH) is an electronic network for financial transactions in the United States. ACH processes large volumes of credit and debit transactions in batches. ACH credit transfers include direct deposit, payroll and vendor payments. ACH direct debit transfers include consumer payments on insurance premiums, mortgage loans, and other kinds of bills.

When you authorize a merchant to debit your account with Sound, the merchant should include information, or a statement, about the timing of the payment. If the merchant offers you the option to make a same-day payment, it might be referred to as a same-day payment, or noted that the merchant intends to collect the funds as quickly as possible.

  • Keep your account information (name, address, phone, email) up-to-date. This is important for Sound Credit Union and merchants in case either party needs to get in touch with you.
  • Frequently review your statements and transaction history. Consider signing up for account alerts so you know when payments and deposits occur.
  • As with any check you write or payment you make, always confirm you have sufficient funds in your account. Online banking and using account alerts make for easy monitoring.

The updated card information will be sent to Visa when your card is re-issued. Visa will provide updated card information, once the new card has been activated, so that merchants can continue to provide you with uninterrupted service.

VAU enables the electronic exchange of updated card information (card number and expiration date changes) among participating financial institutions and merchants that process Visa transactions.

No. VAU supports only card number and expiration date changes.

Enrollment is automatic. All Sound cards are automatically enrolled.

No. Not all merchants participate in the VAU service. Therefore, we recommend contacting all of the merchants that have your old card on file for recurring payments to confirm they have your new, updated card information. If a merchant is an Account Updater partner, they may already have your new card information.

Not at this time. This is a valuable service that will allow for uninterrupted service of recurring payments.

Courtesy Pay

If the account cannot be brought to a positive balance within the 30 day repayment period, the Courtesy Pay privilege will be suspended and/or removed and collection procedures will be initiated. Sound reserves the right to cancel or temporarily suspend Courtesy Pay at any time.

Sound Credit Union does five very important things, which other institutions may not, to help you save money with the Courtesy Pay Program.

  1. ACH deposits (payroll, Social Security, etc.) are posted before ACH withdrawals (automatic deductions, etc.).
  2. We clear checks and ACH withdrawals from “low to high” in each file we receive, which means we clear the small dollar amount transactions before the large ones. In general, this allows more items to clear your account before Courtesy Pay is accessed, and you may experience fewer Courtesy Pay or non-sufficient funds (NSF) fees. (See example below.) Keep in mind that once a debit card is used, the merchant may place a hold on the funds for 1-5 days. If additional transactions are made that exceed the available checking balance, Courtesy Pay fee(s) may be charged.
  3. We will not charge a Courtesy Pay fee if the transaction that brings your account negative is $5 or less. (See example below.)
  4. Funds are transferred first from your savings account (or another designated account and/or line of credit) before accessing Courtesy Pay. The charge for overdraft transfers is $5 per day, regardless of the number of transfers, instead of the normal Courtesy Pay fee.
  5. Upon request, we’re happy to refund one overdraft fee every calendar year. Just ask.
Sound Credit Union
Clearing Items Low to High
AmountAccount Balance
Beginning balance1,000
Lunch12988
Gym Membership75913
Utilities99814
Rent1,100(286)
Overdraft Fee32(318)
Parking4(322)
Total Overdraft Fees: $32

 

Other Institutions
Clearing Items in Order of Arrival
AmountAccount Balance
Beginning Balance1,000
Rent1,100(100)
Overdraft Fee32(132)
Gym Membership75(207)
Overdraft Fee32(239)
Lunch12(251)
Overdraft Fee32(283)
Utilities99(382)
Overdraft Fee32(414)
Parking4(418)
Overdraft Fee32(450)
Total Overdraft Fees: $160

Please note: Debit transactions can clear at any time. Electronic Bill Pay withdrawals can happen at any time on the scheduled “Process Date.”

If you reach your Courtesy Pay privilege limit through transactions and fees, additional overdraft items will not be paid. Our standard non-sufficient funds (NSF) fee will be assessed and you may be subject to additional merchant fees.

Repayment of the overdraft is required within 30 days. If you have additional overdraft items during those 30 days, a Courtesy Pay fee will be assessed for each transaction. Your account must be brought positive on or before the 30th day from the date of the initial overdraft. Any deposits received during the 30 days will be applied first to the overdrawn account.

We will send a written notice by mail after 10 days advising you of any outstanding balance from items paid through Courtesy Pay.

To be notified sooner, text and email alerts are also available in Online Banking.

You or any joint owner may choose to remove the Courtesy Pay service at any time. Let us know in one of the following ways:

If you choose to opt-out of this service, any transaction that may overdraw your account may be returned, and the standard NSF fee will be assessed. You may also be subject to additional fees from the merchant.

If money is owed on the account due to previous Courtesy Pay usage, you, or any joint owner, will still be responsible for repayment, including fees.

If you already have designated other overdraft protection sources (i.e. transfer from a savings, credit card, and/or a loan), they will be accessed first, and in the order you have designated. If there is no overdraft protection, or the other account types have been depleted, Courtesy Pay will then be accessed.

Basic Courtesy Pay is automatically extended 60 days after account opening to all eligible checking accounts. To get the benefits of Complete Courtesy Pay coverage, you must opt-in. See “How do I add Courtesy Pay to my account?” for details.

Basic Courtesy Pay is automatically extended 60 days after account opening to all eligible checking accounts. To get the benefits of Complete Courtesy Pay coverage, you must opt-in.

Opting-in is easy, simply let us know! You can add Complete Courtesy Pay to your account one of four ways:

You only pay for this coverage when Courtesy Pay is accessed. Coverage will stay in place as long as you bring your account positive within 30 days of the initial overdraft. You or any joint owner may add or remove this service at any time.

There are no set-up or maintenance fees to have Courtesy Pay on an account. You only pay for it if you use it. When Courtesy Pay is activated, there is a $32 fee for each transaction greater than $5 that brings the account negative. There is no limit to the total fees that can be charged on an overdrawn account.

There are two levels of Courtesy Pay coverage available. The fee is the same for both levels. For both options, you only pay for the service if you use it.

Basic Courtesy Pay
Covers overdraft transactions using:

  • Paper checks
  • Automatic withdrawals (ACH)

Complete Courtesy Pay
Covers overdraft transactions using:

  • Paper checks
  • Automatic withdrawals (ACH)
  • ATM transactions
  • Everyday debit card transactions

You have a privilege amount based on the deposits coming into your account. Your Courtesy Pay privilege amount is determined in the following way:

  • All eligible accounts that have deposits totaling $1,500 or more per month will receive a $1,500 Courtesy Pay privilege.
  • All eligible accounts that have deposits totaling between $1,000 and $1,499 per month will receive a $1,000 Courtesy Pay privilege.
  • All other eligible accounts will receive a $500 Courtesy Pay privilege.
  • Your Courtesy Pay privilege amount is evaluated monthly and is based on the previous calendar month’s total deposit amount. If your deposit amount changes, your Courtesy Pay privilege amount may change without additional notice.

Overdraft(s) on your checking account may be honored up to the Courtesy Pay limit (including fees) at Sound’s discretion. A $32 Courtesy Pay fee will be assessed for each check, automatic withdrawal (ACH), ATM transaction, debit card transaction or any other item greater than $5 that brings your account negative. You will have up to 30 days to bring your account current, either through a deposit or transfer of funds.

Courtesy Pay is an overdraft service that helps cover the cost of transactions on your account when your available balance cannot. Instead of returning transactions to the merchant as non-sufficient funds (NSF), Sound will pay the balance and overdraw your account, saving you not only from the merchant’s NSF fee, but from service interruptions and the embarrassment and inconvenience associated with returned or declined items.

Available balance equals your account balance minus any holds and/or pending transactions.

Early Pay

Many companies and government agencies send your pay electronically before your “official” payday. Early Pay offers credit of your direct deposit to your Sound Credit Union account up to one day early based upon when we receive your payroll from your employer.

Health Savings Accounts

For pre-tax contributions, you can work with your employer to have funds directed to your Sound HSA account. You may also make individual contributions by depositing funds directly to your account.

For specific tax advice, consult your tax advisor.

Below are the 2017 HSA contribution limits. Any 2017 HSA contributions can be made as late as the 2017 tax deadline in 2018.

2017 HSA Guidelines

HSA Contribution Limits
  • Individual: $3,400
  • Family: $6,750
HSA 55+ Catch-up Contribution Limit
  • Individual:  $1,000
  • Family:  $1,000

Note: Limits are adjusted annually for inflation.

HSA funds can be used to pay for any qualified medial expenses. Qualified expenses include most medical care and services, including dental and vision.

A complete list of qualified medial expenses is available in IRS Publication 502.

 

Members who meet the requirements below on the first day of a given month are eligible to open an HSA and may make and/or receive contributions to their account.

  • Covered under a high-deductible health plan (HDHP)
  • Not covered by any health plan that is not an HDHP
  • Not enrolled in Medicare
  • Not eligible to be claimed as a dependent on another person’s tax return

 

High-deductible health plans are insurance policies that have a higher than average deductible (the amount paid for health expenses each year before an insurance plan covers costs). They also have annual limits on how much has to be paid out-of-pocket in the form of co-payments or co-insurance fees. For current annual limits and out-of-pocket expenses, see “How do I know if my health plan qualifies me for an HSA?” or visit the IRS website.

A Health Savings Account (HSA) is a tax-free savings account that pairs a high-deductible health plan. Designed to reduce healthcare insurance costs for employers and employees, HSAs enable individuals to pay for qualified day-to-day medical expenses on a tax-favored basis. Contributions are tax-deductible and eligible distributions are tax-free. Funds not spent can carry forward to future years and be used penalty-free after age 65 for any purpose.

Mobile Pay is available on all Sound cards, including your HSA debit card.

As a Health Savings Account (HSA) holder, you must report all contributions and distributions on your income tax return. Non-qualified uses of HSA assets are subject to taxes and a 20% penalty, unless the beneficiary is age 65 or older, deceased, or disabled.

To be eligible for a Health Savings Account (HSA), your health plan must qualify as a High-Deductible Health Plan (HDHP). These requirements, listed below, are set annually by the IRS.

2017 HDHP Requirements

HDHP Minimum Deductible
  • Individual: $1,300
  • Family: $2,600
HDHP Out-of-Pocket Limit
  • Individual:  $6,500
  • Family:  $13,100

Minor Accounts

Sound savings, money market, checking, IRA and certificate accounts are insured by the National Credit Union Administration (NCUA) up to $250,000. Additional coverage may be available based on account structure and number of owners on accounts. For more information, visit the NCUA website.

All it takes to open your child’s minor account is a $5 deposit. After that, there is no minimum deposit requirement to earn dividends.

Once they turn 18 years old, their minor account will be automatically converted to a Savings account, which requires a $25 minimum deposit. Before this happens, we’ll send a reminder letter so they can make any needed adjustments to their account.

To see your child’s account information in Online and Mobile Banking, ask to have Multiple Account View added to your account. This can be done both over the phone or at a branch.

For more information on Multiple Account View, see our Online Banking Support section.

Savings Accounts

Sound savings, money market, checking, IRA and certificate accounts are insured by the National Credit Union Administration (NCUA) up to $250,000. Additional coverage may be available based on account structure and number of owners on accounts. For more information, visit the NCUA website.

1099-INT forms are sent out only to those members whose total interest earned for the year was $10.00 or more.  If the total interest you earned was less than $10.00, no interest form would have been sent to you.  Your Year-to-Date (YTD) interest information is always available on your December statement(s).  A YTD summary for interest dividends earned will be listed for each interest-earning deposit account.

If you did earn over $10.00 in interest for the year and still have not received your 1099-INT, please contact us.

Federal law limits the number of withdrawals and transfers from your savings account to six (6) each month.

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Saturday: 9am to 1pm

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