Banking & insurance policies in USA

Are you aware of the Banking policies in USA? Well, you must be aware of them if you are planning to shift to USA lately!

In the United States, banking is regulated at two levels the federal as well as the state level. Excluding the bank regulatory agencies in the U.S., the country maintains separate securities, insurance regulatory agencies, and commodities at both the federal and as well as the state level. Bank regulation in the U.S. works very systematically in contrast to the other G10 countries, where most countries have only one bank regulator.

Banks and other of the financial institutions must notify all the consumer of their policy about the personal information, and must also facilitate with an "opt-out" before reavealing the data to a non-affiliated third party.

Deposit account regulation

Deposit insurance

In 1970 Congress cemented an independent fund for credit unions i.e. the National Credit Union Share Insurance Fund. The NCUSIF insures all federally chartered credit unions and many of the state-chartered credit unions .Others is insured by the private guaranty corporation American Share Insurance (156 as of 2009). In 1978 foreign banks operating in the United States were obliged to uphold similar levels of reserves under the delineations of the International Banking Act

Consumer protection

The Truth in Savings Act (TISA) was executed by the Regulation DD which entrenched uniformity in disclosing terms and conditions in concern with the interest and fees when transmitting information and when opening a new savings account. On passing the law in 1991, Congress came across the fact that it would help boost economic stability, competition between depository institutions, and allow the consumer to make informed decisions.

The Expedited Funds Availability Act (EFAA) of 1987 which was implemented by Regulation CC defines that when standard holds and exception holds can be placed on checks deposited to checking accounts, and the maximum length of time the money can be held. A bank's hold policy can be less rigid than the guidelines anticipated, but it cannot transcend the guidelines.

The Electronic Fund Transfer Act of 1978 which was implemented by Regulation E was implemented for the rights and liabilities of the consumers as well as the accountability of all participants in electronic funds transfer activities.

Withdrawal limits and reserve requirements

·         Constitutes the reserve requirement guidelines

·         controls certain early withdrawals from certificate of deposit accounts

·         States the qualification for a DDA/NOW accounts and also the limitations on certain withdrawals on savings and money market accounts

·         Unlimited transfers or withdrawals if performed by any  person, by ATM, by mail, or by messenger

·         In all the other cases, there is a restriction of six transfers or withdrawals. Not more than three of these six transactions may be paid to a third party by any of the means.

·         Some banks can probably charge a fee for each of excess transaction one makes.

Bank has the right to close those accounts where the transaction limit is constantly exceeded