What is Deposit Reclassification?

Deposit Reclassification is the implementation of an internal process that segregates each Transaction Account (Interest and Non-interest, Personal and Non Personal) into Checking and Savings Sub Accounts, unique to each Customer. The net result is that reserve requirements are maintained only on the balance of the Checking Sub Account, and no longer on the balance of the entire Transaction Account. The overall objective of the process is to maximize the balance of the Savings Sub Account over a calendar month. The Savings Sub Account is consistent with Regulation D requirements on Savings Accounts, whereby the Savings Sub Account is allowed unlimited credits but only 6 debits on a monthly basis.