What Are Some Federal Regulations That Govern Bank Deposit Services?


Quick Answer

Federal regulations governing bank deposits include laws that insure deposit account funds and promote fair and open practices related to electronic funds transfers, states the Office of the Comptroller of the Currency. Other regulations require clear disclosure of when funds deposited into an account are available for withdrawal or transfer.

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Full Answer

As of 2015, the Federal Deposit Insurance Corporation, or FDIC, insures funds that are deposited into interest bearing accounts up to $250,000 per depositor, per financial institution. This insurance provides assurance for the account holder that his money is protected in the event of a bank failure, and regulates the practices of banks in order to prevent risky use of deposit account funds, according to the OCC. Federal regulations that govern electronic funds transfers require banks to provide complete disclosure of terms and conditions, and limits the account holder's liability in the event of unauthorized transfer of funds.

Expedited funds availability is regulated through federal Regulation CC, states the OCC. This regulation requires banks to make funds available to account holders no later than one business day after funds are received by the bank. Though the clearing of a check may take up to 10 days, once an official instrument is deposited into an account holder's account, those funds are legally required to be made available to the customer the next business day.

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