Are you ready for the Regulation CC Funds Availability adjustments effective July 1, 2025? Although financial institutions were provided more than a year to prepare for the availability increases, time can slip on by, leaving us in a scramble. Let’s take that sanity check to ensure we are on track!
July 1, 2020 was the date of the first adjustment in ten years and set the stage for adjustments every five years thereafter. Beginning in 2020, the Federal Reserve Board and CFPB implemented adjustments using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). For 2025, the agencies used the period between July 2018 and July 2023 resulting in a 21.8% increase. The rule requires the increase to then be rounded to the nearest $25.
Funds Availability Thresholds
| Funds Availability Threshold | Current Required Amounts through June 30, 2025 | New Availability Amounts Effective July 1, 2025 |
| Minimum Amount – 12 CFR 229.10(c)(1)(vii) Minimum amount of deposited funds that must be made available for withdrawal by opening of business on the next day for certain check deposits | $225 | $275 |
| Cash Withdrawal Amount – 12 CFR 229.12(d) Amount that must be made available when using the EFA Act’s permissive adjustment to the funds-availability rules for withdrawals by cash or other means | $450 | $550 |
| New Account Amount – 12 CFR 229.13(a)(1)(ii) Amount of funds deposited by certain checks in a new account that are subject to next-day availability | $5,525 | $6,725 |
| Large Deposit Threshold – 12 CFR 229.13(b) Threshold for using an exception to the funds-availability schedules if the aggregate amount of checks on any one banking day exceeds the threshold amount | $5,525 | $6,725 |
| Repeated Overdrafts – 12 CFR 229.13(d)(2) Threshold for determining whether an account has been repeatedly overdrawn | $5,525 | $6,725 |
| Civil Liability Limits Civil Liability Minimum and Maximum for Individual Action – 12 CFR 229.21(a)(2)(i) Civil liability amounts for failing to comply with the EFA Act’s requirements | $1,100 | $1,350 |
| Civil Liability Maximum for Class Action – 12 CFR 229.21(a)(2)(ii)(B) | $672,950 | $672,950 |
Note: The civil liability minimum threshold did not change in 2020 due to rounding to the nearest $25, consistent with statutory requirements. As a result, the inflation adjustment for 2025 includes the aggregate inflation percentage increase for both five-year periods.
Applicability and Disclosure Updates
Just a quick reminder that Reg CC applies to both consumer and business accounts. Update funds availability disclosures, notices, stickers, agreements, webpages, lobby notices, advertisements, and quick reference guides as needed. Don’t forget account-level disclosures that may have availability terms built into them such as online banking, mobile banking, mobile deposit, and cash management agreements. If you include a funds availability statement on the back of checks (e.g., to address remote deposits), be sure to update that statement as well. Lastly, be sure to update ATMs, including any stickers and screen displays.
Change in Terms Notice
Regulation CC requires a change in terms notice whether the change is adverse or advantageous. Where the adjusted hold amounts are to the customer’s favor, expediting availability, a change in terms notice is required no later than 30 days after implementing the adjustment. For example, if you implement as of July 1, 2025 (the required effective date), you must send a change in terms notice no later than July 31, 2025.
Compliance Checklist
- Review notes from 2020 implementation to identify challenges and resolutions
- Kick-off Change Management process, engaging all impacted stakeholders (e.g., front-line, IT, audit, compliance, deposit operations, CSRs, etc.)
- Identify impacted disclosures, notices, etc. and request updates (e.g., internal and third-party) to ensure timely receipt/implementation
- Coordinate with software provider(s) for system update availability to ensure sufficient time for implementation and testing
- Update Risk Assessment
- Draft and submit for board approval Funds Availability Policy
- Communicate to operations compliance changes; Ensure operations updates its procedures accordingly, including adding any new categories to Complaints
- Prepare and implement training for impacted staff – Consider providing a Sentry Quick Reference Guide!
- Prepare and schedule the Change in Terms Notice (e.g., buck slip, on periodic statement) to be provided within 30 days after implementation
- Test system and procedure updates to ensure compliance; Document results (not documented, did not happen)
- Coordinate with front line to sample test hold notices daily for first week or two then weekly for first month or two to ensure no system glitches and reinforce new amounts – Encourage weekly sampling on an ongoing basis for a first line of defense!
- Treat the team and yourself for a job well-done!
While You’re At It, You May Want to Check
While the availability adjustments seem simple compared to other regulatory changes, the implementation process allows compliance teams to review and document processes that may not have been examined thoroughly in some time.
System Settings
- If systems aid in funds availability efforts, adjust accordingly and retain a copy of the reviewed parameters as part of the implementation plan testing
- Verify that system settings allow for interest accrual on interest-bearing deposits as required under the regulation
Review Deposit Cut-Off Times
- Document all cut-off types and locations as part of your oversight testing: With the rapid increase of electronic transfer options and ancillary services, documentation can get misaligned. Take this opportunity to review and document your institution’s cut-off times for each product and service across the documentation reviewed for updates.
Signage Uniformity
- Ensure uniform verbiage is used on teller window signage, ATMs, mobile apps, flyers, websites, and online banking screens. Like cut-off times, documenting the review and results supports the strength of your institution’s Compliance Risk Management Program (CRMP).
The final rule may be found at: Federal Register: Availability of Funds and Collection of Checks