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What Is Regulation E and How Does It Impact Your Bank Account?
Regulation E protects consumers if an unauthorized or incorrect transaction is made to or from their bank account.
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If you’ve ever had your debit card number stolen or had an unauthorized transfer made from your bank account, you may be familiar with some of the details of Regulation E, a federal framework to protect consumers.
What is Regulation E?
Regulation E is a framework created by the Federal Reserve that outlines the responsibilities and liabilities of businesses and people who take part in electronic fund transfers, or EFTs. Regulation E is the way that the Fed implements the Electronic Fund Transfer Act, which was created in 1978 and has been updated over time to reflect new electronic payment technologies. Regulation E protects individuals who make EFTs so they aren’t liable for unauthorized or incorrect transactions to and from their bank accounts, as long as they let their bank know about the situation as soon as possible.
The Federal Reserve defines an EFT as a transaction that a person initiates via an electronic terminal, telephone, computer or debit card that either credits or debits a consumer’s bank account. EFTs can include services such as ATM transfers, bill payment services over the phone, point-of-sale debit card transactions with retailers and pre-authorized transfers to or from a consumer’s bank account.
4.25%Annual Percentage Yield (APY) is accurate as of 01/09/2025. APY may change at any time before or after the account is opened. Available only online.
5.00%Start earning 2.50% APY (Annual Percentage Yield), then qualify to earn 5.00% APY. Earn 5.00% APY on your balance up to $5,000.00 for next month by meeting these two requirements this month: (1) Receive direct deposit(s) totaling $1,000 or more; and (2) End the month with a positive balance in both your Varo Bank Account and Savings Account. You’ll continue to earn 2.50% APY on any additional balance above $5,000.00. No fees, no minimum balance required.
4.00%Annual Percentage Yield (APY). APY may change at any time and fees may reduce earnings. Please visit etrade.com/ratesheet for more information.
Min. balance for APY
$0
These cash accounts combine services and features similar to checking, savings and/or investment accounts in one product. Cash management accounts are typically offered by non-bank financial institutions.
These cash accounts combine services and features similar to checking, savings and/or investment accounts in one product. Cash management accounts are typically offered by non-bank financial institutions.
4.50%*Current promotional rate; annual percentage yield (variable) is 4.00% as of 12/27/24, plus a .50% boost available as a special offer with qualifying deposit. Terms apply; if the base APY increases or decreases, you’ll get the .50% boost on the updated rate. Cash Reserve is only available to clients of Betterment LLC, which is not a bank; cash transfers to program banks (www.betterment.com/cash-portfolio) conducted through clients’ brokerage accounts at Betterment Securities. FDIC insurance is subject to certain conditions.
Min. balance for APY
$0
CDs (certificates of deposit) are a type of savings account with a fixed rate and term, and usually have higher interest rates than regular savings accounts.
CDs (certificates of deposit) are a type of savings account with a fixed rate and term, and usually have higher interest rates than regular savings accounts.
4.50%All Bread Savings APYs are accurate as of 01/30/2025. APYs are subject to change at any time without notice. Offers apply to personal accounts only. Fees may reduce earnings. To open a CD, a minimum of $1,500 is required and must be deposited in a single transaction. A penalty will be imposed for early withdrawals on CDs. At maturity, your CD will automatically renew and earn the base interest rate in effect at that time. Rates are compared against competitor rates published by NerdWallet.com and the institutions themselves as of 01/30/2025. NerdWallet.com obtains the data from the various banks that it tracks and its accuracy cannot be guaranteed.
Regulation E limits a consumer’s liability to $50 in the instance that they experience theft or loss from an unauthorized EFT. However, people who have experienced an unauthorized EFT need to notify their bank, credit union or other depository institution in a timely manner, usually within 60 to 120 days depending on the financial institution; otherwise, they may be liable for $500 or an unlimited amount.
Regulation E covers transactions that affect funds in consumer bank accounts, which means it doesn’t cover credit card transactions, checks or wire transfers. If you have an issue with unauthorized or mistaken use of your credit card, report it to your credit card issuer.
