Understanding the Scope of Reg CC: Which Accounts Fall Under its Purview?

April 12, 2024

What accounts does Reg CC apply to?

Reg CC, short for Regulation CC, is a set of federal regulations implemented by the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau (CFPB) in the United States. It provides guidelines and rules for the availability of funds and the collection of checks by banks and other financial institutions. Understanding the scope of Reg CC is critical for both financial institutions and consumers to ensure compliance and facilitate smooth financial transactions. In this article, we will examine the accounts to which Reg CC applies.

1. Traditional Checking Accounts

Reg CC applies to traditional checking accounts, which are the most common type of transactional accounts offered by banks. These accounts allow individuals and businesses to deposit funds and conduct various financial transactions, such as writing checks, making electronic fund transfers, and withdrawing funds. Reg CC regulates the availability of funds deposited into these checking accounts, including the time it takes for deposited checks to clear and become available for withdrawal.
Financial institutions must comply with Reg CC requirements such as making funds available in a timely manner, disclosing their policies regarding the availability of funds, and notifying customers of any holds or delays in accessing deposited funds. This ensures that consumers have access to their deposited funds within a reasonable timeframe and helps prevent potential problems with bounced checks or insufficient funds.

2. Negotiable Order of Withdrawal (NOW) Accounts

Reg CC also applies to Negotiable Order of Withdrawal (NOW) accounts. NOW accounts are a type of interest-bearing checking account often offered by financial institutions to businesses, nonprofit organizations, and government entities. These accounts typically have fewer transaction restrictions than traditional checking accounts and may require a higher minimum balance to earn interest.
Under Reg CC, NOW accounts are subject to the same rules as traditional checking accounts with respect to the availability of deposited funds. Financial institutions must adhere to prescribed holds and availability schedules and provide clear disclosures to NOW account holders regarding their funds availability policies. This ensures that businesses and organizations have timely access to their deposited funds to meet their financial obligations.

3. Money Market Deposit Accounts (MMDAs)

MMDAs, or Money Market Deposit Accounts, are another type of account to which Reg CC applies. MMDAs are interest-bearing accounts that typically offer higher interest rates than traditional checking accounts. They are often considered a hybrid between a checking account and a savings account, offering some check-writing privileges while providing the potential for higher returns on deposited funds.
When it comes to the availability of funds, financial institutions must comply with Reg CC’s requirements for MMDAs. This includes providing timely access to deposited funds and disclosing any restrictions or delays in availability. MMDA holders should carefully review their financial institution’s policies regarding the availability of funds to ensure that they are aware of any potential restrictions or delays in making withdrawals or writing checks against their account balances.

4. Savings Accounts and Time Deposits

While Reg CC focuses primarily on transactional accounts, such as checking accounts, it does not apply to traditional savings accounts or time deposits (e.g., certificates of deposit or CDs). Savings accounts are designed to encourage individuals to save money and typically offer a higher interest rate than checking accounts. Time deposits are fixed-term investments where funds are deposited for a specified period of time and early withdrawals may be subject to penalties.
Because savings accounts and time deposits have different characteristics and purposes than transaction accounts, they are not covered by Reg CC. However, it’s important to note that financial institutions may have their own policies regarding the availability of funds in these types of accounts. Account holders should review their financial institution’s terms and conditions to understand the availability of funds in their savings or time deposit accounts.

5. Other Accounts and Considerations

In addition to the accounts listed above, it’s important to consider other financial products and services that may not be directly covered by Reg CC but may have an impact on the availability of funds. For example, prepaid cards, electronic wallets and peer-to-peer payment services may have their own policies regarding the availability of funds that users should be aware of.
It’s also important to note that Reg CC primarily applies to transactions within the United States. International financial transactions may be subject to different rules and regulations. If you’re involved in cross-border transactions, it’s wise to familiarize yourself with the applicable rules and regulations governing the availability of funds in those specific jurisdictions.

In summary, Reg CC applies to traditional checking accounts, NOW accounts, and MMDAs and provides guidelines for funds availability and check collection procedures. However, it does not directly apply to savings accounts and time deposits. By understanding the accounts to which Reg CC applies, consumers and financial institutions can ensure compliance, facilitate efficient financial transactions, and promote transparency in the availability of funds.


What accounts does Reg CC apply to?

Reg CC, or Regulation CC, applies to deposit accounts held by financial institutions in the United States. This includes checking accounts, savings accounts, and certain other transactional accounts.

Does Reg CC apply to business accounts?

Yes, Reg CC applies to both consumer accounts and business accounts. Any deposit account held by a financial institution, regardless of whether it is used for personal or business purposes, falls under the purview of Reg CC.

Are credit card accounts covered by Reg CC?

No, credit card accounts are not covered by Reg CC. The regulation specifically applies to deposit accounts, which are accounts where funds are held by a financial institution, such as checking or savings accounts. Credit card accounts involve borrowing money and are governed by separate regulations.

Does Reg CC apply to accounts held at credit unions?

Yes, Reg CC also applies to deposit accounts held at credit unions. Credit unions are considered financial institutions, and as such, they are subject to the rules and regulations outlined in Reg CC.

Are online banking accounts covered by Reg CC?

Yes, online banking accounts are covered by Reg CC. Whether you access your accounts online, through a mobile app, or through traditional brick-and-mortar branches, as long as it is a deposit account held by a financial institution, it falls under the scope of Reg CC.