Fed regulation imposing caps on the rates that banks may pay on savings and time deposits. Currently time deposits with a denomination of $100,000 or more are exempt from Reg Q.

required reserves retail banking

Regulation Q was a United States government regulation that put a limit on the interest rates that banks could pay, including a rate of zero on demand deposits. The imposed zero rate on demand deposits encouraged the emergence of money market funds and the growth of substitutes for and alternatives to banks. Banks also found a variety of ways to get around Regulation Q restrictions and compete for deposits.