From 1933 until 2011, an earlier version of Regulation Q imposed various restrictions on the payment of interest on deposit accounts.
[2] The imposed cap on savings deposit interest rates also encouraged the emergence of alternatives to banks, including money market funds.
Regulation Q ceilings for savings accounts and all other types of accounts except for demand deposits were phased out during the period 1981–1986 by the Depository Institutions Deregulation and Monetary Control Act of 1980; as of March 31, 1986, all interest rate ceilings had been eliminated except for the ban on demand deposit interest, which was then the only remaining substantive component of Regulation Q.
[2] The Regulation Q prohibition of interest-bearing demand deposit accounts was effectively repealed by the Dodd–Frank Wall Street Reform and Consumer Protection Act of 2010 (Pub.
Beginning July 21, 2011, financial institutions have been allowed, but not required, to offer interest-bearing demand deposits.