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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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Chanelle Bessette is a personal finance writer at NerdWallet covering banking. She previously worked at Fortune, Forbes and the Reno Gazette-Journal. Her expertise has appeared in The New York Times, Vox and Apartment Therapy.
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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.
4.00%SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi members with direct deposit are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of 12/3/24. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
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.
4.75%*Current promotional rate; annual percentage yield (variable) is 4.25% as of 11/8/24, plus a .50% boost available as a special offer with qualifying deposit. $10 to start. 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. 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.
4.25%Annual Percentage Yield (APY) is subject to change at any time without notice. Offer applies to personal non-IRA accounts only. Fees may reduce earnings. For CD accounts, a penalty may be imposed for early withdrawals. After maturity, if your CD rolls over, you will earn the offered rate of interest in effect at that time. Visit synchronybank.com for current rates, terms and account requirements. Member FDIC
Term
13 months
Checking accounts are used for day-to-day cash deposits and withdrawals.
Checking accounts are used for day-to-day cash deposits and withdrawals.
0.10%Advertised Annual Percentage Yield (APY) is variable and accurate as of 07/01/2024. Rates are subject to change at any time before or after account opening.
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.
