Does Regulation CC Apply To Savings Accounts?

In this blog, we will dissect how Regulation CC and savings accounts are inter-connected as well as the regulatory framework to get a full picture of how the rules affect the availability and administration of savings.
Does Regulation CC Apply To Savings Accounts
Does Regulation CC Apply To Savings Accounts?
Regulation CC is most commonly linked with checking accounts. Still, it also affects savings accounts regarding how such accounts work and how readily available funds can be accessed for transactions. Let's read to know more!
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Banking practices are governed by complex regulations, which must be understood to navigate the financial world successfully. Among these, Regulation CC is essential for adequately running financial transactions, especially those involving checking and savings accounts. Regulation CC is most commonly linked with checking accounts. Still, it also affects savings accounts regarding how such accounts work and how readily available funds can be accessed for transactions. 

This article explores the complexities of Regulation CC and explains how they relate to savings accounts. In this article, we will dissect whether Regulation CC apply to savings accounts and the regulatory framework to get a full picture of how the rules affect the availability and administration of savings. Meanwhile, check out Beem for the best high-yield savings accounts to maximize your savings and supercharge your financial future.

Why Was Regulation CC Created?

Regulation CC was introduced to improve the efficiency and security of the United States’ payment system. The Federal Reserve implements it, and it establishes rules for the availability of funds as well as the collecting and return of checks. Its major purpose, established in 1987 and later modified, is to eliminate the risk and delays associated with check processing, resulting in a smoother movement of payments between financial institutions. 

Regulation CC strives to balance providing consumers with rapid access to their funds and avoiding fraud in the banking system by establishing limits for the maximum hold periods for deposited funds.

What Types Of Accounts Does Regulation CC Apply To?

Regulation CC governs various kinds of deposit accounts at US depository institutions. Among these are:

Transaction Accounts

Accounts from which withdrawals can be made using negotiable or transferable instruments, such as checks.

Savings Accounts

While some Regulation CC regulations apply primarily to transaction accounts, certain rules also apply to savings accounts.

Time Deposits

Regulation CC covers time deposits; however, the precise requirements governing fund availability do generally not apply to these accounts. Certificates of deposit and other fixed-term deposit instruments are examples of time deposits.

Accounts with Negotiable Order of Withdrawal (NOW)

These interest-bearing transaction accounts are likewise subject to Regulation CC.

Does Regulation Cc Apply To Savings Accounts?

Regulation CC does not extend to savings accounts, focusing exclusively on “transaction” accounts as per Regulation D. While certain states enforce statutes ensuring funds availability for savings accounts, issuing a Regulation CC disclosure upon opening a savings account may reasonably hold limitations to customers. It’s worth noting that certain banks voluntarily apply comparable hold restrictions to both savings and transaction accounts.

Why Doesn’t Regulation Cc Apply To Savings Accounts?

Money market deposit accounts (MMDAs) and savings accounts are exempt from Regulation CC. The lack of restrictions in the rule does not imply that delays in access to money are prohibited. Instead, these hold-ups are governed by your institution’s contract and rules. As a result, Regulation CC doesn’t apply to savings accounts because it focuses on the availability of funds in transaction accounts. In contrast, savings accounts are subject to other regulations that govern their specific characteristics and purposes. 

Verify the existence of a written policy and distribute it to the appropriate personnel. Consider establishing a policy if you still need to get one. Although it is common practice for universities to coordinate their availability dates with Regulation CC, you can make whatever arrangement best serves your institution’s needs.

What Are The Key Differences Between Checking And Savings Accounts?

Both checking and savings accounts can help you stay on top of your finances, but they do it in different ways, as follows:

Point of DistinctionsChecking AccountSavings Account
MeaningA debit card and check-writing capabilities frequently accompany a transactional account, allowing credit and debit transactions.A deposit account designed for funds not earmarked for daily expenses offers a vehicle for savings and potential growth.
WithdrawalsAllow cash withdrawals at branches and ATMs, debit card purchases, checks, money orders, ACH transfers, and wire transfers.Permits fewer withdrawals, typically with limits on transactions, and may charge for exceeding these limits, especially at other bank ATMs.
DepositsCash, checks, and money orders can be deposited at branches ATMs via mobile check deposit, ACH transfers, or wire transfers.Similar deposit methods as checking accounts, including cash, checks, and money orders, with variations based on the financial institution.
Interest EarningUsually, minimal to no interest is earned on deposited funds.Earns interest on deposits, with rates varying among banks and influenced by the type of savings account and deposited amounts.
PurposeIdeal for daily transactions, bill payments, and ATM withdrawals.Suited for saving money, building an emergency fund, or achieving specific financial goals with limited access to funds.
FeesThere are various fees for transactions, overdrafts, and online access. It may or may not be interest-bearing.Generally, there are fewer fees and potential charges for exceeding withdrawal limits, inactivity, or falling below minimum balance requirements.
Withdrawal LimitsVirtually unlimited withdrawals, making it suitable for frequent transactions.Historically, withdrawal restrictions (Regulation D) were eased in 2020, but some financial institutions may still impose limits or fees.
Interest RatesMinimal to no interest on checking accounts.Savings accounts can offer higher interest rates, particularly with online banks, rewarding savers for depositing and maintaining funds.


Regulations like Regulation CC have reshaped the financial sector, making seamless support more critical. Beem appears as a modern ally, delivering intuitive help services like Regulation CC, which maintains a seamless flow within conventional banking. Beem streamlines financial transactions with a focus on simplicity and efficiency, capturing the spirit of regulatory frameworks. 

Beem is the solution in the ever-changing world of personal finance, offering assistance that is easy to understand and implement, much like the rules governing conventional banking. Beem is where efficiency and creativity in managing your finances meet, so jump on board and experience the future of financial help now.


What is Regulation CC?

Regulation CC is one of the Federal Reserve’s banking regulations. The Expedited Funds Availability Act (EFAA) of 1987 and the Check Clearing for the Twenty-First Century Act (Check 21) are both implemented by Regulation CC. These statutes provide precise standards for the prompt availability of consumer deposits placed into transaction accounts. These rules addressed the lengths of hold times that banks previously imposed on customer-deposited cheques.

Does Reg CC apply to IRA accounts?

IRA (Individual Retirement Account) accounts are exempt from Regulation CC. The rule primarily applies to transaction accounts such as checking and savings accounts and the check processing and fund availability associated with them. Regulation CC does not apply to IRAs or investment accounts for retirement savings.

Does Reg CC apply to ACH deposits?

ACH (Automated Clearing House) deposits are not governed by Regulation CC (Expedited Funds Availability Act). Check processing and fund availability for checking and savings accounts are expressly addressed in the rule. The National Automated Clearing House Association (NACHA) and the Electronic Fund Transfer Act (EFTA) have separate laws and regulations for ACH deposits involving electronic fund transfers.

What does CC mean in banking?

Cash credit (CC) is a means of borrowing money that banks provide. It’s a short-term loan, usually for one year or less, designed to cover a company’s working capital needs, usually for one year or less. Because CC is a revolving credit facility, the borrower can withdraw and repay funds as needed or at the convenience of the payee, as long as they do not exceed the credit limit.

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Team Beem brings you the latest in the world of personal finance to you. From tips and tricks on how to manage money to how to get cash for emergencies, Beem is your destination for all the information you need to be smart about your money.


This page is purely informational. Beem does not provide financial, legal or accounting advice. This article has been prepared for informational purposes only. It is not intended to provide financial, legal or accounting advice and should not be relied on for the same. Please consult your own financial, legal and accounting advisors before engaging in any transactions.

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