we are in the process of updating our new account disclosures. There will be some major changes in the way interest is paid as well as other major changes. Do we have to send a copy of the new disclosure to all existing account holders. This could be very expensive!

It depends on the changes you are making. Reg DD states that if you change any disclosed term which may reduce the APY or adversely affect the consumer, a change in terms notice must be mailed or delivered to the consumer at least 30 calendar days before the effective date of the change. The notice is not required for changes in the interest rate or APY on variable rate accounts; changes in fees for check printing; or to changes in any term for time accounts with maturities of one month or less.

Instead of mailing out the entire revised disclosures I believe you can mail a smaller disclosure that shows only the changes that have been made. You would then add a statement that all other provisions not amended remain in effect.

And if you opt to send a complete new schedule, the changes should be identified in some way such as being hi-lited.

Yes, changes can be expensive and time consuming. Remember too that if these changes qualify for redisclosure, you will also be double disclosing to new accounts the existing and the new rules during that interim period.