What is Regulation D/Truth in Savings?
The Truth in Savings Act is a federal that requires financial institutions to clearly disclose their terms of interest and fees when you open a new savings account or CD. The interest rates, Annual Percentage Yield (APY) and fees associated with an account must be disclosed so the consumer is able to make an educated comparison between potential accounts at different institutions.
Regulation D is a federal rule that puts a limit of six transactions per month on certain transactions moving money out of your savings account. If you go over the limit, the financial institution can charge you a fee, close your account or convert it into a checking account. Regulation D is in place to ensure banks have the proper amount of reserves on hand and also to help people use their savings accounts for its intended purpose; to save their money.