Issuing banks are required to make certain disclosures with regard to all CDs that are offered to consumers, including structured CDs. Regulation DD, adopted under the Truth in Savings Act (the TISA), prohibits an issuing bank from advertising its deposit accounts in any way that is inaccurate or misleading.

The regulation also contains a variety of specific disclosure rules with which issuers of CDs must comply. For example, banks may not use the word “profit” in referring to interest payments, or use the words “free” or “no cost” if a maintenance or activity fee is imposed on the account. Banks are also obligated to comply with advertising rules regarding rates of return. For example, an issuing bank must state certain types of interest payments as an “annual percentage yield,” and disclose any and all fees associated with the deposit, such as ladder rates on various CDs, as well as any penalty fees that may be imposed for early withdrawal.

  • In May 2014, the Board of Governors of the Federal Reserve System repealed its Regulation DD. Title X of the Dodd- Frank Wall Street Reform and Consumer Protection Act transferred rulemaking authority for a number of consumer financial protection laws, including the TISA, from the Federal Reserve to the Bureau of Consumer Financial Protection  (the CFPB). In December 2011, the CFPB published an interim final rule establishing its own Regulation DD to implement the TISA. This version of Regulation DD is substantially similar to that of the Federal Reserve.

The CFPB’s new Regulation DD may be found at 12 CFR Part 1030, as well as through the following link: