Description:
This webinar is available as part of our Deposit Compliance Series (3-Part Series).
In this session, we’ll explore the essential aspects of Regulation DD (Truth in Savings) and Regulation D, two critical regulations that govern deposit accounts in financial institutions. Both regulations are designed to ensure transparency, protect consumers, and maintain the stability of the banking system.
Reg DD requires financial institutions to provide accurate and clear information about deposit accounts to help customers make informed decisions. This includes everything from advertising disclosures to periodic account statements. It ensures that customers know exactly what they’re getting when they open an account and what happens afterward. If any changes occur, institutions must provide full disclosure. Reg DD is primarily focused on consumer protection and requires specific information, such as Annual Percentage Yields (APY), fees, penalties, and other account features to be clearly outlined. Failure to meet these requirements can lead to consumer harm and severe regulatory consequences.
At the same time, Reg D plays a crucial role in safeguarding the financial system. By requiring financial institutions to maintain certain reserve levels, it ensures that institutions are prepared to meet withdrawal demands, particularly in times of crisis. This regulation addresses the need for liquidity, ensuring that institutions can handle sudden and large-scale withdrawals, should a panic occur. Though Reg D is focused on the safety and soundness of the institution rather than consumer protection, it still holds significant importance for compliance officers, especially when it comes to eligibility requirements and withdrawal limitations.
While Reg DD and Reg D have distinct goals—consumer protection and institutional stability, respectively—compliance with both is vital throughout the lifecycle of a deposit account. Here’s what you need to know to ensure your institution stays fully compliant:
-
Advertising Disclosures:
Understanding and adhering to triggering terms, and ensuring that your advertising complies across all platforms, including traditional media and social media. -
APY Disclosure:
Accurate calculation and full understanding of the Annual Percentage Yield, a key requirement for both advertising and account disclosures. -
General Disclosure Requirements:
Who must receive disclosures, and when they must be provided. -
Account Opening Disclosures:
Detailed requirements for both deposit accounts and time accounts, including required information at the point of opening. -
Eligibility and Withdrawal Limitations:
Compliance with both mandatory and optional restrictions, including how to manage and disclose them. -
Special Disclosures for Overdraft Services:
Clear guidelines on how overdraft services should be disclosed to account holders. -
Change in Terms Disclosures:
Proper notification procedures when account terms change. -
Periodic Statement Requirements:
Ensuring statements accurately reflect account activity, as required by Reg DD. -
Record Retention:
Understanding how long to retain records in line with both regulations. -
Avoiding UDAP Traps:
Identifying and avoiding potential unfair, deceptive, or abusive practices that could lead to compliance issues.
Successfully navigating both Reg DD and Reg D requirements is crucial for maintaining trust with your customers and safeguarding your institution’s operations. To stay on the right side of both Reg DD and Reg D, you need to know all the requirements for the entire life cycle of a deposit account.
Reminder: Your registration includes a playback of the session, which is available after the session concludes.
This session is eligible for Continuing Education (CE) credits by the American Bankers Association.
Presenters:
Rebekah Leonard, CRCM
Rebekah is the owner of Elucidate LLC, a compliance training and consulting company. Elucidate means to “make clear, explain, throw light upon”, and describes Rebekah’s desire to illuminate the complexities of compliance with passion and fun. She’s created and produced a TRID music video parody and several Compliance Breakout escape rooms, which she frequently provides at state banking compliance conferences. She is an accomplished speaker and regularly provides webinars through BOL and Compliance Resource. Rebekah is currently serving as the VP Director of Compliance for a $6 Billion community bank in Montana. She began her career in 1995 at a private lending company, but soon settled into banking, where she’s covered nearly all of it – customer service and teller work, loan processing and review, and security and business continuity. She now oversees CRA, BSA and all aspects of compliance as a senior leader. She has successfully navigated numerous FDIC Compliance, CRA, and BSA Exams. Rebekah has a bachelor’s degree in Organizational Leadership from Chapman University (Magna cum Laude), attended the American Bankers Association National Compliance School in 2003, and has held her Certified Regulatory Compliance Manager designation since 2006. She is a BOL Compliance Guru.
July 10, 2025