Reporting FR Y-9C (non AA HCs) with less than $5 billion in total assets

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LINE ITEM INSTRUCTIONS FOR

Deposit Liabilities
Schedule HC-E

General Instructions

(7) pass-through reserve balances;

A complete discussion of deposits is included in the
Glossary entry entitled ‘‘deposits.’’ That discussion
addresses the following topics and types of deposits in
detail:

(8) placements and takings; and

(1) FDI Act definition of deposits;
(2) demand deposits;

(9) reciprocal balances.
NOTE: For purposes of this report, IBFs of subsidiary
depository institutions of the reporting holding company
are to be treated as foreign offices and their deposit
liabilities should be excluded from this schedule.

(3) savings deposits;
(4) time deposits;
(5) time certificates of deposit;
(6) time deposits, open account;
(7) transaction accounts;
(8) nontransaction accounts;
(9) NOW accounts;
(10) ATS accounts;
(11) telephone or preauthorized transfer accounts;

Definitions
The term “deposits” is defined in the Glossary and
follows the definition of deposits used in the Federal
Deposit Insurance Act. Reciprocal demand deposits
between the domestic offices of the reporting holding
company and the domestic offices of other depository
institutions that are not consolidated on this report may
be reported net when permitted by generally accepted
accounting principles (GAAP). (See the Glossary entry
for ‘‘reciprocal balances.’’)

(12) money market deposit accounts (MMDAs);

The following are not reported as deposits:

(13) interest-bearing accounts; and

(1) Deposits received in one office of a depository institution for deposit in another office of the same
depository institution.

(14) noninterest-bearing accounts.
Additional discussions pertaining to deposits are also
found under separate Glossary entries for the following:
(1) borrowings and deposits in foreign offices;
(2) brokered deposits;
(3) dealer reserve accounts;
(4) hypothecated deposits;
(5) letters of credit (for letters of credit sold for cash and
travelers’ letters of credit);
(6) overdrafts;
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Schedule HC-E March 2013

(2) Outstanding drafts (including advices or authorizations to charge the depository institution’s balance in
another depository institution) drawn in the regular
course of business by the reporting depository institution on other depository institutions, including
so-called ‘‘suspense depository accounts’’ (report as
a deduction from the related ‘‘due from’’ account).
(3) Trust funds held in the bank’s own trust department
that the bank keeps segregated and apart from its
general assets and does not use in the conduct of its
business.
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(4) Deposits accumulated for the payment of personal
loans (i.e., hypothecated deposits), which should be
netted against loans in Schedule HC-C, Loans and
Lease Financing Receivables.
(5) All obligations arising from assets sold under agreements to repurchase.
(6) Overdrafts in deposit accounts. Overdrafts are to be
reported as loans in Schedule HC-C, and not as
negative deposits. Overdrafts in a single type of
related transaction accounts (e.g., related demand
deposits or related NOW accounts, but not a combination of demand deposit accounts and NOW
accounts) of a single legal entity that are established
under a bona fide cash management arrangement
by this legal entity are not to be classified as loans
unless there is a net overdraft position in the accounts
taken as a whole. Such accounts are regarded as, and
function as, one account rather than as multiple
separate accounts.
(7) Time deposits sold (issued) by a subsidiary bank of
the consolidated holding company that have been
purchased subsequently by a holding company subsidiary in the secondary market (typically as a result
of the holding company’s trading activities) and have
not resold as of the report date. For purposes of these
reports, a holding company (or its subsidiaries) that
purchases a time deposit a subsidiary has issued is
regarded as having paid the time deposit prior to
maturity. The effect of the transaction is that the
consolidated holding company has cancelled a liability as opposed to having acquired an asset for its
portfolio.
(8) Cash payments received in connection with transfers
of the holding company’s other real estate owned that
have been financed by the holding company and do
not qualify for sale accounting, which applicable
accounting standards describe as a “liability,” a
“deposit,” or a “deposit liability.” Until a transfer
qualifies for sale accounting, these cash payments
shall be reported in Schedule HC-G, item 4, “All
other liabilities.” See the Glossary entry for “foreclosed assets” for further information.
The following are reported as deposits:
(1) Deposits of trust funds standing to the credit of
other banks and all trust funds held or deposited in
any department of a subsidiary depository instituHC-E-2

tion of the reporting holding company other than
the trust department.
(2) Escrow funds.
(3) Payments collected by a depository institution subsidiary on loans secured by real estate and other
loans serviced for others that have not yet been
remitted to the owners of the loans.
(4) Credit balances resulting from customers’ overpayments of account balances on credit cards and
related plans.
(5) Funds received or held in connection with checks
or drafts drawn by a subsidiary depository institution of the reporting holding company and drawn
on, or payable at or through, another depository
institution either on a zero-balance account or on an
account that is not routinely maintained with sufficient balances to cover checks drawn in the normal
course of business (including accounts where funds
are remitted by a subsidiary depository institution
of the reporting holding company only when it has
been advised that the checks or drafts have been
presented).
(6) Funds received or held in connection with traveler’s checks and money orders sold (but not drawn)
by a subsidiary depository institution of the reporting holding company, until the proceeds of the sale
are remitted to another party, and funds received or
held in connection with other such checks used (but
not drawn) by a subsidiary depository institution of
the reporting holding company, until the amount of
the checks is remitted to another party.
(7) Checks drawn by a subsidiary depository institution
of the reporting holding company on, or payable at
or through, a Federal Reserve Bank or a Federal
Home Loan Bank.
(8) Refundable loan commitment fees received or held
by a subsidiary depository institution of the reporting holding company prior to loan closing.
(9) Refundable stock subscription payments received
or held by the reporting holding company prior to
the issuance of the stock. (Report nonrefundable
stock subscription payments in Schedule HC-G,
item 4, ‘‘Other’’ liabilities.)
(10) Improperly executed repurchase agreement sweep
accounts (repo sweeps). According to Section 360.8
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of the FDIC’s regulations, an ‘‘internal sweep
account’’ is ‘‘an account held pursuant to a contract
between an insured depository institution and its
customer involving the pre-arranged, automated
transfer of funds from a deposit account to . . .
another account or investment vehicle located
within the depository institution.’’ When a repo
sweep from a deposit account is improperly executed
by an institution, the customer obtains neither an
ownership interest in identified assets subject to a
repurchase agreement nor a perfected security interest in the applicable assets. In this situation, the
institution should report the swept funds as deposit
liabilities, not as repurchase agreements, beginning
July 1, 2009.
(11) The unpaid balance of money received or held by
the reporting institution that the reporting institution promises to pay pursuant to an instruction
received through the use of a card, or other payment code or access device, issued on a prepaid or
prefunded basis.
In addition, the gross amount of debit items (‘‘throwouts,’’ ‘‘bookkeepers’ cutbacks,’’ or ‘‘rejects’’) that cannot be posted to the individual deposit accounts without
creating overdrafts or for some other reason, but which
have been charged to the control accounts of the various
deposit categories on the general ledger, should be credited to (added back to) the appropriate deposit control
totals and reported in Schedule HC, item 11, ‘‘Other
assets.’’
Line Item 1 Deposits held in domestic offices of
commercial bank subsidiaries of the reporting
holding company.
Report in items 1(a) through 1(e) below deposits held
in domestic offices of the commercial bank subsidiaries
of the reporting holding company that are consolidated
by the holding company on this report.
For purposes of this item, commercial bank subsidiaries
cover all banks that file the commercial bank Consolidated Reports of Condition and Income (FFIEC 031,
041). See the Glossary entry for ‘‘Domestic Office’’ for
the definition of this term.
If the reporting holding company consolidates a subsidiary foreign bank on this report, items 1(a) through 1(e)
must also include deposits held in the U.S. offices of such
foreign bank subsidiaries.
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March 2013

Line Item 1(a) Noninterest-bearing balances.
Report all noninterest-bearing deposits, including any
matured time or savings deposits that have not automatically been renewed, as defined in the Glossary entry for
‘‘deposits.’’
Include the following:
(1) Noninterest-bearing deposits that are payable immediately on demand or issued with an original maturity
of less than seven days, or that are payable with less
than seven days notice, or for which the bank subsidiary does not reserve the right to require at least
seven days written notice of an intended withdrawal.
(2) Unpaid depositors’ checks that have been certified.
(3) Cashiers’ checks, money orders, or other officers’
checks issued for any purpose including those issued
in payment for services, dividends, or purchases that
are drawn on a consolidated bank subsidiary of the
reporting holding company by any of its duly authorized officers and that are outstanding on the report
date.
(4) Outstanding travelers’ checks, travelers’ letters of
credit, or other letters of credit (less any outstanding
drafts accepted thereunder) sold for cash or its
equivalent by the consolidated holding company
organization or its agents.
(5) Outstanding drafts and bills of exchange accepted by
the consolidated holding company organization or its
agents for money or its equivalent, including drafts
accepted against a letter of credit issued for money or
its equivalent.
(6) Checks or drafts drawn by, or on behalf of, a
non-U.S. office of a subsidiary bank of the reporting
holding company on an account maintained at a U.S.
office of the bank subsidiary. Such drafts are, for the
Consolidated Financial Statements for Holding Companies, the same as officers’ checks. This would
include ‘‘London checks,’’ ‘‘Eurodollar bills payable
checks,’’ and any other credit items that the domestic
bank issues in connection with such transactions.
Line Item 1(b) Interest-bearing demand deposits
NOW, ATS, and other transaction accounts.
Report in this item all interest-bearing demand deposits,
all accounts subject to negotiable orders of withdrawal
(i.e., NOW accounts), all ATS accounts (that is, accounts
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subject to automatic transfer from savings accounts), and
all other transaction accounts, excluding noninterestbearing demand deposits.
Other transaction accounts include the following:
(1) Accounts (other than MMDAs) that permit third
party payments through automated teller machines
(ATMs) or remote service units (RSUs).
(2) Accounts (other than MMDAs) that permit third
party payments through the use of checks, drafts,
negotiable instruments, debit cards, or other similar
items.
(3) Accounts (other than MMDAs) if more than six of
the following transactions per calendar month are
permitted to be made by telephone or preauthorized
order or instruction:
(a) payments or transfers to third parties;
(b) transfers to another account of the depositor at
the same institution; and
(c) transfers to an account at another depository
institution.
Line Item 1(c) Money market deposit accounts
and other savings accounts.
Report in this item all savings deposits held in the
subsidiary commercial banks consolidated in this report
by the reporting holding company, other than NOW
accounts, ATS accounts, or other transaction accounts
that are in the form of savings deposits.
Include the following in this item:
(1) Money market deposit accounts (MMDAs).
(2) Savings deposits subject to telephone and preauthorized transfers where the depositor is not permitted or
authorized to make more than six withdrawals per
month for purposes of transferring funds to another
account or for making a payment to a third party
by means of preauthorized or telephone agreement,
order, or instruction.
(3) Savings deposits subject to no more than six transfers
per month for purposes of covering overdrafts (i.e.,
overdraft protection plan accounts).
(4) All other savings deposits that are not classified as
transaction accounts (e.g., regular savings and passbook savings accounts).
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(5) Interest paid by crediting the savings deposit accounts
defined by paragraphs (1) through (4) in this item.
Exclude the following from this item:
(1) NOW accounts (including ‘‘Super NOWs’’) and ATS
accounts (report in item 1(b) above).
(2) Overdraft protection plan accounts that permit more
than six transfers per month (report in item 1(a) as a
demand deposit).
(3) Savings deposits subject to telephone or preauthorized transfer (report in item 1(b) above), unless the
depositor is not permitted or not authorized to make
more than six withdrawals per month for purposes of
transferring funds to another account or for making a
payment to a third party by means of preauthorized
or telephone agreement, order, or instruction.
(4) Special passbook or statement accounts, such as
‘‘90-day notice accounts,’’ ‘‘golden passbook
accounts,’’ or deposits labeled as ‘‘savings certificates,’’ that have a specified original maturity of
seven days or more (report as time deposits in
item 1(d) or 1(e) below).
(5) Interest accrued on savings deposits but not yet paid
or credited to a deposit account (exclude from this
schedule and report in Schedule HC, item 20, ‘‘Other
liabilities’’).
Line Item 1(d) Time deposits of $250,000 or less
Report in this item all time deposits with balances of
$250,000 or less that are held in domestic offices of the
commercial bank subsidiaries of the reporting holding
company. This item includes both time certificates
of deposit and open-account time deposits with balances
of $250,000 or less, regardless of negotiability or
transferability.
Include the following:
(1) Time deposits (as defined in the Glossary entry for
‘‘deposits’’), which are deposits with original maturities of seven days or more, that are not classified as
transaction accounts and that have balances of
$250,000 or less.
(2) Interest paid by crediting nontransaction time deposit
accounts with balances of $250,000 or less.
(3) Time deposits issued to deposit brokers in the form
of large (more than $250,000) certificates of deposit
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Schedule HC-E

that have been participated out by the broker in
shares of $250,000 or less. In addition, if the bank
subsidiary has issued a master certificate of deposit to
a deposit broker in an amount that exceeds $250,000
and under which brokered certificates of deposit are
issued in $1,000 amounts (so-called ‘‘retail brokered
deposits’’), individual depositors who purchase multiple certificates issued by the bank subsidiary normally do not exceed the applicable deposit insurance
limit (currently $250,000). Under current deposit
insurance rules the deposit broker is not required to
provide information routinely on these purchasers
and their account ownership capacity to the bank
subsidiary issuing the deposits. If this information is
not readily available to the issuing bank subsidiary,
these brokered certificates of deposit in $1,000
amounts should be reported in this item as time
deposits of $250,000 or less.

NOTE: Holding companies should include as time deposits of their commercial bank subsidiaries of more than
$250,000 those time deposits originally issued in denominations of $250,000 or less but that, because of interest
paid or credited, or because of additional deposits, now
have a balance of more than $250,000.

Exclude from this item all time deposits with balances of
more than $250,000 (report in item 1(e) below).

For purposes of this item, other depository institutions
cover depository institutions other than commercial
banks (as defined in item 1 of this schedule) that are
consolidated subsidiaries of the reporting holding company. Such depository institutions may include savings
and loan or building and loan associations, depository
trust companies, or other institutions that accept deposits
that do not submit the commercial bank Reports of
Condition and Income (FFIEC 031, 041).

Line Item 1(e) Time deposits of more than
$250,000.
Report in this item all time deposits, including time
certificates of deposit and open-account time deposits
with balances of more than $250,000, regardless of
negotiability or transferability that are held in the commercial bank subsidiaries of the reporting holding
company.
Include the following:
(1) Time deposits (as defined in the Glossary entry for
‘‘deposits’’), which are deposits with original maturities of seven days or more, that are not classified
as transaction accounts and that have balances of
more than $250,000.
(2) Interest paid by crediting nontransaction time deposit
accounts with balances of more than $250,000.
Exclude the following:
(1) All time deposits issued to deposit brokers in the
form of large (more than $250,000) certificates of
deposit that have been participated out by the broker
in shares of $250,000 or less (report in item 1(d)).
(2) All time deposits with balances of $250,000 or less
(report in item 1(d)),
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Line Item 2 Deposits held in domestic offices of
other depository institutions that are subsidiaries of
the reporting holding company.
NOTE: Items 2(a) through 2(e) are to be completed only
by holding companies that have depository institutions
other than banks as subsidiaries.
Report in items 2(a) through 2(e) below deposits held in
domestic offices of other depository institutions that are
subsidiaries of the reporting holding company and that
are consolidated by the holding company on this report.

Exclude Edge and Agreement Corporations from the
coverage of ‘‘other depository institutions’’ for purposes
of this item. Domestic offices are those offices located in
the fifty states of the United States and the District of
Columbia.
Line Item 2(a) Noninterest-bearing balances.
Report all noninterest-bearing deposits, including any
matured time or savings deposits that have not automatically been renewed, as defined in the Glossary entry for
‘‘deposits,’’ that are held in domestic offices of ‘‘other
depository institutions’’ that are subsidiaries consolidated
on the reporting holding company’s financial statements.
Include any deposit account on which the issuing depository institution pays no compensation.
Line Item 2(b) Interest-bearing demand deposits,
NOW, ATS, and other transaction accounts.
Report in this item all interest-bearing demand deposits,
all accounts subject to negotiable orders of withdrawal
(i.e., NOW accounts), all ATS accounts (that is, accounts
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Schedule HC-E

subject to automatic transfer from savings accounts), and
all other transaction accounts that are held in domestic
offices of the ‘‘other depository institution’’ subsidiaries
of the reporting holding company.
Other transaction accounts include the following:

2 (3) All other savings deposits that are not classified as
transaction accounts (e.g., regular savings and passbook savings accounts).

3 (4) Interest paid by crediting the savings deposit accounts
defined by paragraphs (1) through (4) in this item.

(1) Accounts (other than MMDAs) that permit third
party payments through automated teller machines
(ATMs) or remote service units (RSUs).
(2) Accounts (other than MMDAs) that permit third
party payments through the use of checks, drafts,
negotiable instruments, debit cards, or other similar
items.
(3) Accounts (other than MMDAs) if more than six of
the following transactions per calendar month are
permitted to be made by telephone or preauthorized
order or instruction:
(a) payments or transfers to third parties;
(b) transfers to another account of the depositor at
the same institution; and
(c) transfers to an account at another depository
institution.
Line Item 2(c) Money market deposit accounts
and other savings accounts.
Report in this item all savings deposits held in the
subsidiary depository institutions (other than commercial
banks) consolidated in this report by the reporting holding company, other than NOW accounts, ATS accounts,
Money Market
or other transaction accounts that are in the form of
Deposit Accounts
savings deposits.

(MMDAs)

Include in this item the following:
(1) Savings deposits subject to telephone and preauthorized transfers where the depositor is not permitted or
authorized to make more than six withdrawals per
month for purposes of transferring funds to another
account or for making a payment to a third party
by means of preauthorized or telephone agreement,
order, or instruction.
(2) Savings deposits subject to no more than six transfers
per month for purposes of covering overdrafts (i.e.,
overdraft protection plan accounts).
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Exclude from this item the following:
(1) NOW accounts and ATS accounts (report in item 2(b)
above).
(2) Overdraft protection plan accounts that permit more
than six transfers per month (report in item 2(a) as
noninterest-bearing balances).
(3) Savings deposits subject to telephone or preauthorized transfer (report in item 2(b) above), unless the
depositor is not permitted or not authorized to make
more than six withdrawals per month for purposes of
transferring funds to another account or for making a
payment to a third party by means of preauthorized
or telephone agreement, order, or instruction.
(4) Interest accrued on savings deposits but not yet paid
or credited to a deposit account (exclude from this
schedule and report in Schedule HC, item 20, ‘‘Other
liabilities’’).
Line Item 2(d) Time deposits of $250,000 or less.
Report in this item all time deposits with balances of
$250,000 or less that are held in domestic offices of
‘‘other depository institutions’’ (other than commercial
banks), as defined in item 2 above that are subsidiaries of
the reporting holding company. This item includes both
time certificates of deposit and open-account time deposits with balances of $250,000 or less, regardless of
negotiability or transferability.
Include the following:
(1) Time deposits (as defined in the Glossary entry for
‘‘deposits’’), which are deposits with original maturities of seven days or more, that are not classified as
transaction accounts and that have balances of
$250,000 or less.
(2) Interest paid by crediting nontransaction time deposit
accounts with balances of $250,000 or less.
(3) Time deposits issued to deposit brokers in the form
of large (more than $250,000) certificates of deposit
that have been participated out by the broker in
shares of $250,000 or less. In addition, if the depository institution has issued a master certificate of
deposit to a deposit broker in an amount that exceeds
$250,000 and under which brokered certificates of
deposit are issued in $1,000 amounts (so-called
“retail brokered deposits”), individual depositors who
purchase multiple certificates issued by the deposiFR Y-9C
Schedule HC-E

March 2017

tory institution normally do not exceed the applicable
deposit insurance limit (currently $250,000). Under
current deposit insurance rules the deposit broker is
not required to provide information routinely on
these purchasers and their account ownership capacity to the depository institution issuing the deposits.
If this information is not readily available to the
issuing depository institution, these brokered certificates of deposit in $1,000 amounts should be reported
in this item as time deposits $250,000 or less.
Exclude from this item all time deposits with balances of
more than $250,000 (report in item 2(e) below).
Line Item 2(e) Time deposits of more than
$250,000.
Report in this item all time deposits, including time
certificates of deposit and open-account time deposits
with balances of more than $250,000, regardless of
negotiability or transferability that are held in depository
institutions (other than commercial banks) that are subsidiaries of the reporting holding company.
Include the following:
(1) Time deposits (as defined in the Glossary entry for
“deposits”), which are deposits with original maturities of seven days or more, that are not classified as
transaction accounts and that have balances of more
than $250,000.
(2) Interest paid by crediting nontransaction time deposit
accounts with balances of more than $250,000.
Exclude the following:
(1) All time deposits issued to deposit brokers in the
form of large (more than $250,000) certificates of
deposit that have been participated out by the broker
in shares of $250,000 or less (report in item 2(d)).
(2) All time deposits with balances of $250,000 or less
(report in item 2(d)),
NOTE: Holding companies should include as time deposits held in their depository institution subsidiaries (other
than commercial banks) with balances of more than
$250,000, those time deposits originally issued in denominations of $250,000 or less, but that, because of interest
paid or credited, or because of additional deposits, now
have a balance of more than $250,000.
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Memoranda
Line Item M1 Brokered deposits $250,000 or less
with a remaining maturity of one year or less.
Report in this item those brokered time deposits included
in items 1 or 2 above with balances of $250,000 or less
with a remaining maturity of one year or less and are held
in domestic offices of commercial banks or other depository institutions that are subsidiaries of the reporting
holding company. Remaining maturity is the amount of
time remaining from the report date until the final
contractual maturity of a brokered deposit. Include in this
item time deposits issued to deposit brokers in the form
of large (more than $250,000) certificates of deposit that
have been participated out by the broker in shares of
$250,000 or less. Also report in this item all brokered
demand and savings deposits with balances of $250,000
or less. See the Glossary entries for ‘‘Brokered deposits’’
and ‘‘Brokered retail deposits’’ for additional information.
Line Item M2 Brokered deposits $250,000 or less
with a remaining maturity of more than one year.
Report in this item those brokered time deposits included
in items 1 or 2 above with balances of $250,000 or less
with a remaining maturity of more than one year and are
held in domestic offices of commercial banks or other
depository institutions that are subsidiaries of the reporting holding company. Remaining maturity is the amount
of time remaining from the report date until the final

HC-E-8

contractual maturity of a brokered deposit. Include in this
item time deposits issued to deposit brokers in the form
of large (more than $250,000) certificates of deposit that
have been participated out by the broker in shares of
$250,000 or less. See the Glossary entries for “Brokered
deposits” and “Brokered retail deposits” for additional
information.
Line Item M3 Time deposits of more than
$250,000 with a remaining maturity of one year or
less.
Report in this item time deposits included in items 1(e)
and 2(e) above that are issued in denominations of more
than $250,000 with a remaining maturity of one year or
less. Remaining maturity is the amount of time remaining
from the report date until the final contractual maturity of
a time deposit. Exclude from this item time deposits
issued to deposit brokers in the form of large (more than
$250,000) certificates of deposit that have been participated out by the broker in shares of $250,000 or less.
Line Item M4 Foreign office time deposits with a
remaining maturity of one year or less.
Report all time deposits in foreign offices with remaining
maturities of one year or less. Remaining maturity is the
amount of time remaining from the report date until the
final contractual maturity of a time deposit. The time
deposits included in this item will also have been
included in Schedule HC, item 13(b).

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Glossary

guidance on how to report adjustments to Tier 1 capital
and risk-weighted and total assets to reverse the effects of
applying ASC Subtopic 715-20 for regulatory capital
purposes.
Demand Deposits: See “Deposits.”
Depository Institutions: Depository institutions consist
of depository institutions in the U.S. and banks in foreign
countries.
Depository institutions in the U.S. consist of:
(1) U.S. branches and agencies of foreign banks;
(2) U.S.-domiciled head offices and branches of U.S.
banks, i.e.,
(a) national banks,

lation D. The definitions in these two legal sources differ
in certain respects. Furthermore, for purposes of these
reports, the reporting standards for deposits specified in
these instructions do not strictly follow the precise legal
definitions in these two sources. In addition, deposits for
purposes of this report, include deposits of thrift institutions. The definitions of deposits to be reported in the
deposit items of the Consolidated Financial Statements
of Holding Companies are discussed below under the
following headings:
(I) FDI Act definition of deposits.
(II) Transaction–nontransaction deposit
distinction.
(III) Interest noninterest-bearing deposit
distinction.

(b) state-chartered commercial banks,

(I) FDI Act definition of deposits:

(c) trust companies that perform a commercial banking business,

(1) the unpaid balance of money or its equivalent received
or held by a bank in the usual course of business and
for which it has given or is obligated to give credit,
either conditionally or unconditionally, to a commercial, checking, savings, time, or thrift account, or
which is evidenced by its certificate of indebtedness,
or other similar name, or a check or draft drawn
against a deposit account and certified by the bank, or
a letter of credit or a traveler’s check on which the
bank is primarily liable: Provided that, without limiting the generality of the term ‘‘money or its equivalent,’’ any such account or instrument must be
regarded as evidencing the receipt of the equivalent
of money when credited or issued in exchange for
checks or drafts or for a promissory note upon which
the person obtaining any such credit or instrument is
primarily or secondarily liable, or for a charge against
a deposit account, or in settlement of checks, drafts,
or other instruments forwarded to such bank for
collection.

(d) industrial banks,
(e) private or unincorporated banks,
(f) Edge and Agreement corporations, and
(g) International Banking Facilities of U.S. depository institutions; and
(3) U.S.-domiciled head offices and branches of other
depository institutions in the U.S., i.e.,
(a) mutual or stock savings banks,
(b) savings or building and loan associations,
(c) cooperative banks,
(d) credit unions,
(e) homestead associations, and
(f) International Banking Facilities (IBFs) of other
depository institutions in the U.S.; and
(g) other similar depository institutions in the U.S.
Banks in foreign countries consist of foreign branches of
foreign banks and foreign offices of U.S. banks.
See the Glossary entry for ‘‘Banks, U.S. and foreign,’’ for
a definition of foreign banks.
Deposits: The basic statutory and regulatory definitions
of ‘‘deposits’’ are contained in Section 3(1) of the Federal
Deposit Insurance Act and in the Federal Reserve ReguFR Y-9C
Glossary June 2015

(2) trust funds as defined in this Act received or held by
such bank, whether held in the trust department or
held or deposited in any other department of such
bank.
(3) money received or held by a bank, or the credit given
for money or its equivalent received or held by a
bank, in the usual course of business for a special or
specific purpose, regardless of the legal relationship
thereby established, including without being limited
to, escrow funds, funds held as security for an
GL-21

DRAFT
Glossary

obligation due to the bank or others (including funds
held as dealers reserves) or for securities loaned by
the bank, funds deposited by a debtor to meet
maturing obligations, funds deposited as advance
payment on subscriptions to United States government securities, funds held for distribution or purchase of securities, funds held to meet its acceptances
or letters of credit, and withheld taxes: Provided that
there shall not be included funds which are received
by the bank for immediate application to the reduction of an indebtedness to the receiving bank, or
under condition that the receipt thereof immediately
reduces or extinguishes such an indebtedness.
(4) outstanding draft (including advice or authorization
to charge bank’s balance in another bank), cashier’s
check, money order, or other officer’s check issued in
the usual course of business for any purpose, including without being limited to those issued in payment
for services, dividends, or purchases, and
(5) such other obligations of a bank as the Board of
Directors of the Federal Deposit Insurance Corporation, after consultation with the Comptroller of the
Currency and the Board of Governors of the Federal
Reserve System, shall find and prescribe by regulation to be deposit liabilities by general usage.
(II) Transaction–nontransaction deposit distinction:
The Monetary Control Act of 1980 and the current
Federal Reserve Regulation D, ‘‘Reserve Requirements
of Depository institutions,’’ establish, for purposes of
federal reserve requirements on deposit liabilities, a
category of deposits designated as ‘‘transaction accounts’’
All deposits that are not transaction accounts are ‘‘nontransaction accounts.’’
(1) Transaction accounts—With the exceptions noted
below, a ‘‘transaction account,’’ as defined in Regulation D and in these instructions, is a deposit or
account from which the depositor or account holder
is permitted to make transfers or withdrawals by
negotiable or transferable instruments, payment orders
of withdrawal, telephone transfers, or other similar
devices for the purpose of making payments or
transfers to third persons or others or from which the
depositor may make more than six third party payments at an automated teller machine (ATM), a
remote service unit (RSU), or another electronic
device, including by debit card.
GL-22

Excluded from transaction accounts are savings
deposits (including money market deposit accounts—
MMDAs) as defined below in the nontransaction
account category. However, an account that otherwise meets the definition of savings deposits but that
authorizes or permits the depositor to exceed the
transfer limitations specified for those respective
accounts shall be reported as a transaction account.
(Please refer to the definitions of savings deposits for
further detail.)
Transaction accounts consist of the following types
of deposits: (a) demand deposits; (b) NOW accounts
(including accounts previously designated as ‘‘Super
NOWs’’); (c) ATS accounts; and (d) telephone and
preauthorized transfer accounts. Interest that is paid
by the crediting of transaction accounts is also
included in transaction accounts.
(a) Demand deposits are deposits that are payable
immediately on demand, or have an original
maturity or required notice period of less than
seven days, or that represent funds for which the
depository institution does not reserve the right to
require at least seven days’ written notice of an
intended withdrawal. Demand deposits include
any matured time deposits without automatic
renewal provisions, unless the deposit agreement
provides for the funds to be transferred at maturity to another type of account. Effective July 21,
2011, demand deposits may be interest-bearing
or noninterest-bearing. Demand deposits do not
include: (i) money market deposit accounts
(MMDAs) or (ii) NOW accounts, as defined
below in this entry.
(b) NOW accounts are interest-bearing deposits (i) on
which the depository institution has reserved the
right to require at least seven days’ written notice
prior to withdrawal or transfer of any funds in the
account and (ii) that can be withdrawn or transferred to third parties by issuance of a negotiable
or transferable instrument.
NOW accounts, as authorized by federal law, are
limited to accounts held by:
(i) Individuals or sole proprietorships;
(ii) Organizations that are operated primarily for
religious, philanthropic, charitable, educational, or other similar purposes and that are
Glossary

FR Y-9C
June 2015

DRAFT
Glossary

not operated for profit. These include organizations, partnerships, corporations, or associations that are not organized for profit and
are described in section 501(c)(3) through
(13) and (19) and section 528 of the Internal
Revenue Code, such as church organizations; professional associations; trade associations; labor unions; fraternities, sororities
and similar social organizations; and nonprofit recreational clubs; or
(iii) Governmental units including the federal
government; state governments; county and
municipal governments and their political
subdivisions; the District of Columbia; the
Commonwealth of Puerto Rico, American
Samoa, Guam, and any territory or possession of the United States and their political
subdivisions.
NOTE: There are no regulatory requirements
with respect to minimum balances to be maintained in a NOW account or to the amount of
interest that may be paid on a NOW account.
(c) ATS accounts are deposits or accounts of individuals on which the depository institution has
reserved the right to require at least seven days’
written notice prior to withdrawal or transfer of
any funds in the account and from which, pursuant to written agreement arranged in advance
between the reporting institution and the depositor, withdrawals may be made automatically
through payment to the depository institution
itself or through transfer of credit to a demand
deposit or other account in order to cover checks
or drafts drawn upon the institution or to maintain a specified balance in, or to make periodic
transfers to, such other accounts.
(d) Telephone or preauthorized transfer accounts
consist of deposits or accounts (1) in which the
entire beneficial interest is held by a party eligible to hold a NOW account, (2) on which the
reporting institution has reserved the right to
require at least seven days’ written notice prior to
withdrawal or transfer of any funds in the account,
and (3) under the terms of which, or by practice
of the reporting institution, the depositor is permitted or authorized to make more than six
withdrawals per month or statement cycle (or
FR Y-9C
Glossary June 2015

similar period) of at least four weeks for purposes
of transferring funds to another account of the
depositor at the same institution (including a
transaction account) or for making payment to
institution (including a transaction account) or
for making payment to a third party by means of
preauthorized transfer, or telephonic (including
data transmission) agreement, order or instruction. An account that permits or authorizes more
than six such withdrawals in a ‘‘month’’ (a
calendar month or any period approximating a
month that is at least four weeks long, such as a
statement cycle) is a transaction account whether
or not more than six such withdrawals actually
are made in the ‘‘month.’’
A ‘‘preauthorized transfer’’ includes any
arrangement by the reporting institution to pay
a third party from the account of a depositor
(1) upon written or oral instruction (including an
order received through an automated clearing
house (ACH), or (2) at a predetermined time or
on a fixed schedule.
Telephone and preauthorized transfer accounts
also include (1) the balances of deposits or
accounts that otherwise meet the definition of
savings deposits (other than MMDAs) or time
deposits, but from which payments may be made
to third parties by means of a debit card, an
automated teller machine, remote service unit or
other electronic device, regardless of the number
of payments made; and (2) deposits or accounts
maintained in connection with an arrangement
that permits the depositor to obtain credit directly
or indirectly through the drawing of a negotiable
or nonnegotiable check, draft, order or instruction or other similar device (including telephone
or electronic order or instruction) on the issuing
institution that can be used for purposes of
making payments or transfers to third persons
or others, or to another deposit account of the
depositor.
Telephone or preauthorized transfer accounts do
not include:
(i) Accounts that otherwise meet the definition
of telephone or preauthorized transfer
accounts as defined above but that are held
by a depositor that is not eligible to hold
GL-23

DRAFT
Glossary

a NOW account. Such accounts shall be
reported as demand deposits.
(ii) Accounts, regardless of holder, that permit
no more than six telephone or preauthorized
transfers per month to another account of the
depositor at the same institution or to a third
party. (iii)

(2) Transfers of funds from this account to
another account of the same depositor at the
same institution when by mail, messenger,
automated teller machine, or in person.

(iii) All demand deposits, ATS accounts, NOW
accounts, and savings deposits (including
MMDAs), even if telephone or preauthorized transfers are permitted from such
accounts.

(3) Withdrawals for payment directly to the
depositor when made by mail, messenger,
automated teller machine, in person, or
by telephone (via check mailed to the
depositor).

(iv) Deposits or accounts (other than savings
deposits) held by individuals from which
more than six transfers per month can
be made to a checking or NOW account
to cover overdrafts. Such accounts are
regarded as ATS accounts, not as telephone
or preauthorized transfer accounts.

Further, savings deposit have no minimum balance is required by regulation, there is no regulatory limitation on the amount of interest that may
be paid, and no minimum maturity is required
(although depository institutions must reserve the
right to require at least seven days’ written notice
prior to withdrawal as stipulated above for a
savings deposit).

(2) Nontransaction accounts—All deposits that are Insert
not
A
transaction accounts (as defined above) are non transaction accounts. Nontransaction accounts include:
(a) savings deposits (including MMDAs and other
savings deposits) and (b) time deposits (time certificates of deposit and time deposits, open account).
(a) Savings deposits are deposits that are not payable
on a specified date or after a specified period of
time from the date of deposit, but for which the
reporting institution expressly reserves the right
to require at least seven days’ written notice
before an intended withdrawal.
Under the terms of the deposit contract or by practice of the depository institution, the depositor is
permitted or authorized to make no more than six
transfers per calendar month or statement cycle
(or similar period) of at least four weeks to
another account (including a transaction account)
of the depositor at the same institution or to a
third party by means of a preauthorized or automatic transfer or telephonic (including data transmission) agreement, order or instruction, or by
check, draft, debit card or similar order made by
the depositor and payable to third parties.
There are no regulatory restrictions on the following types of transfers or withdrawals from a
saving account regardless of the number:
GL-24

(1) Transfers for the purpose of repaying loans
and associated expenses at the same depository institution (as originator or servicer).

Any depository institution may place restrictions
and requirements on savings deposits in addition
to those stipulated above for each respective
account and in Federal Reserve Regulation D.
On the other hand, an account that otherwise
meets the definition of savings deposit but that
authorizes or permits the depositor to exceed the
third-party transfer rule shall be reported as a
transaction account, as follows:
(1) If the depositor is ineligible to hold a NOW
account, such an account is considered a
demand deposit.
(2) If the depositor is eligible to hold a NOW
account, the account will be considered either
a NOW account, a telephone or pre authorized transfer account, an ATS account, or a
demand deposit, depending first on whether
transfers or withdrawals by check, draft, or
similar instrument are permitted or authorized and, if not, on the types of transfers
allowed and on the type of depositor:
(a) If withdrawals or transfers by check,
draft, or similar instrument are permitted
or authorized, the account is considered a
NOW account.
Glossary

FR Y-9C
June 2015

Insert A

DRAFT

Treatment of Accounts where Reporting Institutions Have Suspended Enforcement of the Six Transfer
Limit per Regulation D
Where the reporting institution has suspended the enforcement of the six transfer limit rule on an
account that meets the definition of a savings deposit, the reporting institution is required to report
such deposits as a savings account or a transaction account based on an assessment of the
characteristics of the account as indicated below:
1) If the reporting institution does not retain the reservation of right to require at least seven days'
written notice before an intended withdrawal, report the account as a demand deposit (and as a
"transaction account").
2) If the reporting institution does retain the reservation of right to require at least seven days' written
notice before an intended withdrawal, report the account as either a NOW1 account (and as a
"transaction account") or as a savings deposit (and as a nontransaction account).

The option to report as a NOW account (and a transaction account) is only applicable to
institutions that offer NOW accounts. Institutions that do not offer NOW accounts should continue
to report such deposits as a savings deposit (and as a nontransaction account).

1

March 2021

DRAFT
Glossary

(b) If withdrawals or transfers by check,
draft, or similar instrument are not permitted or authorized, the nature of the
account is determined first by the type of
transfers authorized or permitted and second by the type of depositor:
(i) If only telephone or preauthorized
transfers are permitted or authorized,
the account is considered a telephone
or preauthorized transfer account.
(ii) If other types of transfers are authorized or permitted (e.g., automatic
transfers), the account type is determined by the type of depositor:
(a) If the depositor is eligible to hold
an ATS account, the account is
considered an ATS account.
(b) If the depositor is ineligible to
hold an ATS account, the account
is considered a demand deposit.
(b) Time deposits are payable on a specified date not
less than seven days after the date of deposit or
payable at the expiration of a specified time not
less than seven days after the date of deposit, or
payable only upon written notice that is actually
required to be given by the depositor not less than
seven days prior to withdrawal. Also, the depositor does not have a right, and is not permitted, to
make withdrawals from time deposits within six
days after the date of deposit unless the deposit is
subject to an early withdrawal penalty of at least
seven days’ simple interest on amounts withdrawn
within the first six days after deposit.7 A time
deposit from which partial early withdrawals are
permitted must impose additional early withdrawal penalties of at least seven days’ simple
interest on amounts withdrawn within six days
after each partial withdrawal. If such additional
early withdrawal penalties are not imposed, the
account ceases to be a time deposit. The account
may become a savings deposit if it meets the

7. Accounts existing on March 31, 1986, may satisfy the early withdrawal
penalties specified by Federal Reserve Regulation D by meeting the
Depository Institutions Deregulation Committee’s early withdrawal
penalties in existence on March 31, 1986.
FR Y-9C
Glossary June 2017

requirements for a savings deposit; other wise it
becomes a demand deposit.
NOTE: The above prescribed penalties are the
minimum required by Federal Reserve Regulation D. Institutions may choose to require penalties for early withdrawal in excess of the
regulatory minimums.
Time deposits take two forms:
(i) Time certificates of deposit (including rollover certificates of deposit) are deposits
evidenced by a negotiable or nonnegotiable instrument, or a deposit in book
entry form evidenced by a receipt or similar acknowledgement issued by the bank,
that provides, on its face, that the amount
of such deposit is payable to the bearer, to
any specified person, or to the order of a
specified person as follows:
(a) on a certain date not less than seven
days after the date of deposit,
(b) at the expiration of a specified period
not less than seven days after the date
of the deposit, or
(c) upon written notice to the bank which
is to be given not less than seven days
before the date of withdrawal.
(ii) Time deposits, open account are deposits
(other than time certificates of deposit) for
which there is in force a written contract
with the depositor that neither the whole
nor any part of such deposit may be withdrawn prior to:
(a) the date of maturity which shall be not
less than seven days after the date of
the deposit, or
(b) the expiration of a specified period of
written notice of not less than seven
days. These deposits include ‘‘club
accounts.’’ For purposes of the Consolidated Financial Statements of
Holding Companies, ‘‘club accounts’’
consist of accounts, such as Christmas
club and vacation club accounts, made
under written contracts that provide
GL-25

DRAFT
Glossary

that no withdrawal shall be made until
a certain number of periodic deposits
have been made during a period of not
less than three months, even though
some of the deposits are made within
six days of the end of such period.
Time deposits do not include the following
categories of liabilities even if they have an
original maturity of seven days or more:
(1) Any deposit or account that otherwise
meets the definition of a time deposit but
that allows withdrawals within the first
six days after deposit and that does not
require an early withdrawal penalty of at
least seven days’ simple interest on
amounts withdrawn within those first six
days. Such deposits or accounts that meet
the definition of a savings deposit shall
be reported as savings deposits; otherwise they shall be reported as demand
deposits.

Insert B

(2) The remaining balance of a time deposit
if a partial early withdrawal is made and
the remaining balance is not subject to
additional early withdrawal penalties of
at least seven days’ simple interest on
amounts withdrawn within six days after
each partial withdrawal. Such time deposits that meet the definition of a savings
deposit shall be reported as savings
deposits; otherwise they shall be reported
as demand deposits.

Reporting of Retail Sweep Arrangements Affecting Transaction and Nontransaction Accounts — In an effort to
reduce their reserve requirements, some holding company bank subsidiaries have established “retail sweep
arrangements” or “retail sweep programs.” In a retail
sweep arrangement, a depository institution transfers
funds between a customer’s transaction account(s) and
that customer’s nontransaction account(s) (usually savings deposit account(s)) by means of preauthorized or
automatic transfers, typically in order to reduce transaction account reserve requirements while providing the
customer with unlimited access to the funds.
There are three key criteria for retail sweep programs to
GL-26

comply with Federal Reserve Regulation D definitions of
“transaction account” and “savings deposit:”
(1) A depository institution must establish by agreement
with its transaction account customer two legally
separate accounts: a transaction account (a NOW
account or demand deposit account) and a savings
deposit account, sometimes called a ‘‘money market
deposit account’’ or ‘‘MMDA’’;
(2) The swept funds must actually be moved from the
customer’s transaction account to the customer’s
savings deposit account on the official books and
records of the depository institution as of the close of
the business on the day(s) on which the depository
institution intends to report the funds in question as
savings deposits and not transaction accounts, and
vice versa. In addition to actually moving the customer’s funds between accounts and reflecting this
movement at the account level:
(a) If the depository institution’s general ledger is
sufficiently disaggregated to distinguish between
transaction and savings deposit accounts, the
aforementioned movement of funds between the
customer’s transaction account and savings
deposit account must be reflected on the general
ledger.
(b) If the depository institution’s general ledger is
not sufficiently disaggregated, the distinction may
be reflected in supplemental records or systems,
but only if such supplemental records or systems
constitute official books and records of the institution and are subject to the same prudent managerial oversight and controls as the general ledger.
A retail sweep program may not exist solely in
records or on systems that do not constitute official
books and records of the depository institution and
that are not used for any purpose other than generating its Report of Transaction Accounts, Other Deposits and Vault Cash (FR 2900) for submission to the
Federal Reserve; and
(3) The maximum number of preauthorized or automatic
funds transfers (‘‘sweeps’’) out of a savings deposit
account and into a transaction account in a retail
sweep program is limited to not more than six per
month. Transfers out of the transaction account and
into the savings deposit may be unlimited in number.
Glossary

FR Y-9C
June 2015

DRAFT
Glossary

If any of the three criteria is not met, all swept funds must
continue to be reported as transaction accounts, both for
purposes of this report and of FR 2900 deposit reports.
All three criteria must be met in order to report the
nontransaction subaccount as a nonreservable savings
deposit account.
Further, for purposes of the FR Y-9C report, if all three of
the criteria above are met, a holding company must report
the transaction account and nontransaction account components of a retail sweep program separately when it
reports its quarter-end deposit information in Schedules
HC and HC-E, its quarterly averages in Schedule HC-K,
and its interest expense (if any) in Schedule HI. Thus,
when reporting quarterly averages in Schedule HC-K, a
holding company should include the amounts held in the
transaction accounts (if interest-bearing) and the nontransaction savings accounts in retail sweep arrangements each day or each week in the appropriate separate
items for average interest-bearing deposits. In addition, if
the bank subsidiary pays interest on accounts involved in
retail sweep arrangements, the interest expense reported
in Schedule HI should be allocated to the appropriate
category in item 2(a), ‘‘Interest on deposits,’’ based on
the balances in these accounts during the reporting
period.
For additional information, refer to the Federal Reserve
Board staff guidance relating to the requirements for a
retail sweep program under Regulation D at http://
www.federalreserve.gov/boarddocs/legalint/
FederalReserveAct/2007/20070501/20070501.pdf.
(III) Interest noninterest-bearing deposit distinction:
(1) Interest-bearing deposit accounts consist of deposit
accounts on which the issuing depository institution
makes any payment to or for the account of any
depositor as compensation for the use of funds
constituting a deposit. Such compensation may be in
the form of cash, merchandise, or property or as a
credit to an account. An institution’s absorption of
expenses incident to providing a normal banking
function or its forbearance from charging a fee in
connection with such a service is not considered a
payment of interest.
Deposits with a zero percent interest rate that are
issued on a discount basis are to be treated as
interest-bearing. Deposit accounts on which the interest rate is periodically adjusted in response to changes
FR Y-9C
Glossary June 2015

in market interest rates and other factors should be
reported as interest-bearing even if the rate has been
reduced zero, provided the interest rate on these
accounts can be increased as market conditions
change.
(2) Noninterest-bearing deposit accounts consist of
deposit accounts on which the issuing depository
institution makes no payment to or for the account of
any depositor as compensation for the use of funds
constituting a deposit. An institution’s absorption of
expenses incident to providing a normal banking
function or its forbearance from charging a fee in
connection with such a service is not considered a
payment of interest.
Noninterest-bearing deposit accounts include (i)
matured time deposits that are not automatically
renewable (unless the deposit agreement provides for
the funds to be transferred at maturity to another type
of account) and (ii) deposits with a zero percent
stated interest rate that are issued at face value.
See also ‘‘Brokered deposits’’ and ‘‘Hypothecated
deposits.’’
Derivative Contracts: Holding companies commonly
use derivative instruments for managing (positioning or
hedging) their exposure to market risk (including interest
rate risk and foreign exchange risk), cash flow risk, and
other risks in their operations and for trading. The
accounting and reporting standards for derivative instruments, including certain derivative instruments embedded in other contracts, and for hedging activities are set
forth in ASC Topic 815, Derivatives and Hedging (formerly FASB Statement No. 133, Accounting for Derivative Instruments and Hedging Activities, as amended),
which holding companies must follow for purposes of
these reports. ASC Topic 815 requires all derivatives to
be recognized on the balance sheet as either assets or
liabilities at their fair value. A summary of the principal
provisions of ASC Topic 815 follows. For further information, see ASC Topic 815 which includes the implementation guidance issued by the FASB’s Derivatives
Implementation Group.
Definition of Derivative
ASC Topic 815 defines a ‘‘derivative instrument’’ as a
financial instrument or other contract with all three of the
following characteristics:
GL-27

Insert B

DRAFT

Reporting of Retail Sweep Arrangements – When a depository institution establishes a retail sweep program,
the depository institution must ensure that its customer account agreements provide for the existence of two
distinct accounts rather than a single account and the funds are actually transferred between these two
accounts as described in the customer contract.
There are two key criteria for retail sweep programs:
(1) A depository institution must establish by agreement with its customer two legally separate accounts;
(2) The swept funds must actually be moved between the customer’s two accounts on the official books and
records of the depository institution as of the close of the business on the day(s) on which the depository
institution intends to report the funds
A retail sweep program may not exist solely in records or on systems that do not constitute official books and
records of the depository institution and that are not used for any purpose other than generating its Report of
Transaction Accounts, Other Deposits and Vault Cash (FR 2900) for submission to the Federal Reserve.
Further, for purposes of the FR Y-9C report, if all of the criteria above are met, a holding company must
determine the appropriate reporting of the accounts that are components of a retail sweep program
separately when it reports its quarter-end deposit information in Schedules HC, HC-E, its quarterly averages
in Schedule HC-K, and its interest expense (if any) in Schedule HI. Thus, when reporting quarterly averages
in Schedule HC-K, a holding company should include the accounts (excluding noninterest-bearing demand
deposits) involved in the retail sweep arrangements each day or each week in the appropriate separate items
for average deposits. In addition, if the bank subsidiary pays interest on accounts involved in retail sweep
arrangements, the interest expense reported in Schedule HI should be allocated between both accounts
based on the balances in these accounts during the reporting period.

March 2021