What type of deposits does Regulation D not cover?

Regulation D pertains to reserve requirements for depository institutions and delineates the types of deposits that financial institutions can consider as "transaction accounts" versus "non-transaction accounts." One of the key aspects of this regulation is how it categorizes different types of deposit accounts and the associated restrictions on transfers and withdrawals.

Non-personal time deposits are not covered under Regulation D because they are considered to fall outside the scope of the types of accounts that the regulation is designed to manage. Specifically, these accounts are usually for institutional or business use rather than personal consumer use, which is a primary focus of Regulation D. This regulation commonly pertains to saving and consumer accounts, which are subject to specific limitations on monthly withdrawals and transfers to maintain their non-transaction account status.

In contrast, accounts such as certificates of deposit, savings accounts, and money market deposit accounts are typically governed by Regulation D since they are designed for individual consumers and have defined limitations on transaction capabilities that help the Federal Reserve control the money supply. Therefore, the significance of identifying non-personal time deposits as not covered by Regulation D lies in their classification as deposits that do not require strict adherence to the transaction limitations imposed on personal banking accounts.