the Federal Reserve Bank's regulation that sets deposit interest rate ceilings and regulates advertising of interest on savings accounts. This regulation applies to all commercial banks. It is a rule, first instituted in the Banking Act of 1933.
Federal Reserve regulation prohibiting payment of interest on checking (demand deposit) accounts, and requires depository institutions to clearly state the terms for depositing and renewing time deposits and certificates of deposit, and also any penalties for early withdrawal of savings accounts. Deposit interest rate ceilings under Regulation Q were abolished as of March 31, 1986. Regulation Q does not prevent the paying of interest on Negotiable Order Of Withdrawal (NOW) Account, which are orders to pay, rather than demand instruments, i.e., checks. A bank has discretion on whether to honor NOW drafts.
Federal Reserve Board ceiling on the rates that banks and other savings institutions can pay on savings and other time deposits. The depository institutions deregulation and monetary control act of 1980 provided for phasing out Regulation Q by 1986.
the regulation that, prior to its repeal, limited the amount of interest a time deposit at a bank could pay.
