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Question & Answer
Question: Reg E refers to passbook accounts and non-passbook accounts. We have a statement savings account on which we send quarterly statements. Reg E says if EFT transfers are made there must be monthly or more frequent statements. We do not allow withdrawal by EFT, but we do allow EFT deposits. Do we have to send a monthly statement?
Answer: Your source is Regulation E, Section 205.9-"… If the consumer has a non-passbook account which may not be accessed by an EFT other than preauthorized transfers to the account, a periodic statement need be sent only quarterly." Therefore, if you allow only deposits, you are fine with quarterly statements. Monthly is not required.
Thanks to Phil Farley, Manager, Regulatory Assistance of the Federal Reserve Bank of Philadelphia for answering this for us!
Copyright © 1993 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 3, No. 12, 5/93
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