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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.
Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.
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.
2.00%SoFi members with direct deposit can earn up to 2.00% annual percentage yield (APY) interest on all account balances in their Checking and Savings accounts (including Vaults). Members without direct deposit will earn 1.00% APY on all account balances in Checking and Savings (including Vaults). Interest rates are variable and subject to change at any time. Rate of 2.00% APY is current as of 08/12/2022. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet
1.70%1.70% APY (annual percentage yield) with $0 minimum balance to earn stated APY. Accounts must have a positive balance to remain open. APY valid as of 08/12/2022.
1.60%Advertised Online Savings Account APY is accurate as of 08/12/2022
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.
5.00%The Aspiration Save Account’s up to 5.00% Annual Percentage Yield (“APY”) with up to 71x the national interest rate is variable, subject to change, and only available to customers enrolled in Aspiration Plus after conditions are met. Customers not enrolled in Aspiration Plus receive 3.00% APY after conditions are met.
1.60%The annual percentage yield ("APY") on the deposit balances in Betterment Cash Reserve ("Cash Reserve") is 1.60% and represents the weighted average of the APY on deposit balances at the banks participating in Cash Reserve (the "Program Banks") and is current as of August 01, 2022. This APY is variable and subject to change daily. Deposit balances are not allocated equally among the participating Program Banks. A minimum deposit of $10 is required, but there is no minimum balance required to be maintained. The APY available to a customer may be lower if that customer designates a bank or banks as ineligible to receive deposits. APY applies only to Cash Reserve and does not apply to checking accounts held through Betterment Checking. Cash Reserve and Betterment Checking are separate offerings and are not linked accounts.
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.
2.00%SoFi members with direct deposit can earn up to 2.00% annual percentage yield (APY) interest on all account balances in their Checking and Savings accounts (including Vaults). Members without direct deposit will earn 1.00% APY on all account balances in Checking and Savings (including Vaults). Interest rates are variable and subject to change at any time. Rate of 2.00% APY is current as of 08/12/2022. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet
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.
