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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%Annual Percentage Yield (APY) is accurate as of June 17th, 2025. Start earning 2.50% APY, then qualify to earn 5.00% APY on your balance up to $5,000.00 and 2.50% APY on balances over $5,000 next month by 1) Receiving direct deposit(s) totaling $1,000 or more; and 2) Ending the month with a positive balance in all your Varo Accounts. No fees, no minimums required. Rates subject to change at any time.
4.00%Annual Percentage Yield (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.
Up to 4.50%The Base Annual Percentage Yield (APY) is 4.00% as of 06/30/25, but is variable and is subject to change. If you are eligible for the overall boosted rate of 4.50% offered in connection with this promo, your boosted rate is also subject to change if the base rate decreases during the three-month promotional period. This limited-time promo offers eligible new Wealthfront clients a 0.50% APY increase over the standard variable base APY for 3 months on up to $250K in their personal Cash Accounts. Cash Account offered by Wealthfront Brokerage LLC, Member FINRA/SIPC, and is not a bank. APY (is representative, requires no minimum) is paid from our Program Banks.
4.65%Cash Reserve offered by Betterment LLC and requires a Betterment Securities brokerage account. Betterment is not a bank. Learn More (https://www.betterment.com/cash-portfolio). Annual percentage yield (variable) is 4.00% as of 12/27/24, plus a 0.65% boost (“APY Boost”) for new clients with a qualifying deposit. $10 min deposit for base APY. Terms apply (betterment.com/boost); if the base APY changes, the Boosted APY will change. FDIC insurance provided by Program Banks (https://www.betterment.com/cash-portfolio), 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.
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.
