Effective July 1, 2025, several thresholds under Regulation CC will increase due to a 21.8% rise in the Consumer Price Index for Urban Wage Earners and Clerical Workers from July 2018 to July 2023. These changes impact how financial institutions handle funds availability holds.
What’s Changing?
The following Regulation CC thresholds will increase:
- Minimum deposit amount: from $225 to $275
- Cash withdrawal amount: from $450 to $550
- Large-deposit, new-account, emergency condition, re-deposited item, reasonable cause and repeatedly overdrawn thresholds: each increasing from $5,525 to $6,725
Financial institutions must be prepared to update policies, systems, and communications to remain compliant with these changes.
Actionable Steps to Ensure Compliance
- Audit and Update All References to Hold Amounts
Common locations include:
- Internal policies and procedures
- Customer disclosures
- Online banking platforms
- Lobby signage
- Deposit-taking ATMs
Ensure all references the new dollar amounts.
- Notify Customers by July 31, 2025
Regulation CC requires customer notification within 30 calendar days of the effective date. Notices must be clear, conspicuous, and delivered through a communication method of your choice (mail, email, online banking, etc.). If issuing a full update, highlight the new terms for clarity.
- Verify and Test Your Systems
Update core systems to reflect the new thresholds and conduct test scenarios to ensure accuracy. Review preprinted hold notices to confirm they display the correct.
- Conduct Staff Training
Educate all employees to ensure they fully understand and can properly apply the new hold amounts.
Need help implementing these changes? Contact a Pinion financial advisor.
