What Is Regulation DD?

Regulation DD Explained in Less Than 5 Minutes

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Regulation DD is the portion of the Truth in Savings Act that requires depository institutions to provide disclosures that detail account features and changes.

Regulation DD is the portion of the Truth in Savings Act that requires depository institutions to provide disclosures that detail account features and changes.

Definition of Regulation DD

Through Regulation DD, consumers are entitled to regulated disclosures from financial institutions—excluding credit unions. A consumer is entitled to these disclosures when opening a deposit account or at various other times as a potential or actual customer. While you can request disclosures at any time, you will receive the information from your depository institution when:

  • Opening an account
  • Receiving a periodic statement
  • Account terms change
  • An account matures

These disclosures help you comparison shop for the account that best suits your needs.  

Knowing the history and scope of Regulation DD can offer insight into why it is important to your financial health. Understanding how depository institutions implement and distribute disclosures empowers you to choose the best deposit accounts for your financial situation.

The Truth in Savings Act (TISA) was passed in 1991, and Regulation DD became effective in June 1993. The purpose of Regulation DD is to ensure that financial institutions are transparent with potential and existing customers when it comes to the features of their depository accounts. These institutions must provide disclosures to consumers who can then make informed decisions and shop around for the right accounts for their needs. On July 1, 2006, amendments to Regulation DD further regulated the adequacy of the information disclosed to customers when they overdraw their accounts.

Regulation DD outlines the authority, purpose, coverage, and effect on state laws in the Truth in Savings Act. It also offers official definitions of features that depository institutions present to consumers. Regulation DD’s coverage extends to depository institutions in the United States, as well as foreign depository institutions that operate branches within the country. 


Credit unions are exempt from Regulation DD. Instead, they’re regulated under the National Credit Union Administration, Part 707 of the Rules and Regulations, which Congress expects to be “substantially similar” to Regulation DD. So credit unions must also provide truthful disclosures to consumers, just under a different regulatory body.

How Does Regulation DD Work?

Regulation DD lists definitions of features of financial accounts, beginning with a basic explanation of what constitutes an account. For example, Regulation DD defines an account as “a deposit account at a depository institution that is held by or offered to a consumer. It includes time, demand, savings, and negotiable order of withdrawal accounts. Regulation DD covers interest-bearing as well as non-interest-bearing accounts.”

Listing the various definitions ensures that lawmakers, attorneys, and depository institutions are on the same page about account features—and, therefore, on the same page about the extent of the disclosures required to comply with Regulation DD.

In addition, Regulation DD ensures that the advertisements produced by depository institutions to attract potential customers will comply with federal law, be truthful, and be free from misleading information. All claims made by the institution in their advertisements must:

  • Be reasonable
  • Reflect the legal obligation of both the institution and the account holder
  • Use consistent terminology

Regulation DD also requires that banks provide disclosures to people who are opening accounts. Customers are entitled to disclosures that explain fees, annual percentage yield, interest rates, and other possible features. For instance, when a consumer goes to a bank to open a savings account, the bank must provide information about the account’s interest rate and how it is calculated. According to the Federal Credit Insurance Corporation, depository institutions must make disclosures “applicable, clearly and conspicuously, in writing, and in a form the consumer may keep.” Consumers can consent to an electronic form, but depository institutions must request that consent. 

Why You Should Understand Regulation DD

By understanding Regulation DD, you become a more informed—and, therefore, more powerful—consumer. You can better advocate for yourself and your rights as a consumer when opening or managing your savings accounts at depository institutions. You can also comparison shop more easily for savings accounts, as banks must advertise their true interest rates and minimum-balance requirements.

Regulation DD prevents abuse and fraud by requiring banking institutions that offer depository accounts to provide truthful information about their products.

Key Takeaways

  • Regulation DD is the part of the Truth in Savings Act that requires depository institutions to disclose account features to consumers so they can make informed choices.
  • Regulation DD regulates the claims that depository institutions can make in their advertising, and requires that ads be truthful and free from misleading information.
  • A depository institution is any establishment that accepts deposits or holds them in a depository account.
  • Credit unions are technically depository institutions. However, they are regulated by Part 707 of the National Credit Union Association Rules and Regulations, which is similar to Regulation DD.
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The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy.
  1. Federal Reserve. "Regulation DD: Truth in Savings," See "Background." Accessed Aug. 19, 2021.

  2. National Credit Union Administration. "Truth in Savings Act (NCUA Rules & Regulations Part 707)." Accessed Aug. 19, 2021.

  3. Federal Reserve. "Regulation DD: Truth in Savings," See "Definitions." Accessed Aug. 19, 2021.

  4. FDIC. "FDIC Law, Regulations, Related Acts, 6500 - Consumer Financial Protection Bureau, Part 1030, Truth in Savings (Regulation DD)," See "§ 1030.3 General Disclosure Requirements." Accessed Aug. 19, 2021.

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