A question came up today on the annual cd notice. Can this be mailed anytime throughout the year or must it be mailed on the one year purchase date?

I'm not sure what annual CD notice you're referring to. The notices required by Reg DD before maturity on CDs are only required to be sent once, not annually. Here's a link to that section of Reg DD. If that's not what you're looking for, please give a bit more information.

If you have automatically renewable CDs then you are required to send a notice by Reg DD standards. Is that the notice you are inquiring about?

(1) Maturities of longer than one year. If the maturity is longer than one year, the institution shall provide account disclosures set forth in Sec. 230.4(b) of this part for the new account, along with the date the existing account matures. If the interest rate and annual percentage yield that will be paid for the new account are unknown when disclosures are provided, the institution shall state that those rates have not yet been determined, the date when they will be determined, and a telephone number consumers may call to obtain the interest rate and the annual percentage yield that will be paid for the new account.
Can this notice be mailed anytime within the year?

Here's the excerpt from Reg DD:
Read down to the end, and you'll have your answer.

Sec. 230.5 Subsequent disclosures.

(b) Notice before maturity for time accounts longer than one month that renew automatically. For time accounts with a maturity longer than one month that renew automatically at maturity, institutions shall provide the disclosures described below before maturity. The disclosures shall be mailed or delivered at least 30 calendar days before maturity of the existing account. Alternatively, the disclosures may be mailed or delivered at least 20 calendar days before the end of the grace period on the existing account, provided a grace period of at least five calendar days is allowed.
(1) Maturities of longer than one year. If the maturity is longer than one year, the institution shall provide account disclosures set forth in Sec. 230.4(b) of this part for the new account, along with the date the existing account matures. If the interest rate and annual percentage yield that will be paid for the new account are unknown when disclosures are provided, the institution shall state that those rates have not yet been determined, the date when they will be determined, and a telephone number consumers may call to obtain the interest rate and the annual percentage yield that will be paid for the new account.
(2) Maturities of one year or less but longer than one month. If the maturity is one year or less but longer than one month, the institution shall either:
(i) Provide disclosures as set forth in paragraph (b)(1) of this section; or
(ii) Disclose to the consumer:
(A) The date the existing account matures and the new maturity date if the account is renewed;
(B) The interest rate and the annual percentage yield for the new account if they are known (or that those rates have not yet been determined, the date when they will be determined, and a telephone number the consumer may call to obtain the interest rate and the annual percentage yield that will be paid for the new account); and
(C) Any difference in the terms of the new account as compared to the terms required to be disclosed under Sec. 230.4(b) of this part for the existing account.

(c) Notice before maturity for time accounts longer than one year that do not renew automatically. For time accounts with a maturity longer than one year that do not renew automatically at maturity, institutions shall disclose to consumers the maturity date andwhether interest will be paid after maturity. The disclosures shall be mailed or delivered at least 10 calendar days before maturity of the existing account.

Good question Anon. We are now questoning the same thing. Longer than one year,and they automaticaly renew. When do you mail the annual notice. Anytime during the year, or after the term has reached one full year. We mailed them all at the same time to customers with terms over a year. I hope we are ok. No one is answering your question and the the reg. states annually. Maybe someone with Reg DD smarts will confirm my post. (I can't post my name).

We mail ours with the maturity notice. 1. It cuts down on the cost of a separate mailing. 2. I believe the intent was to allow the customer to choose if these terms and conditions are still what they want - i.e. help them decide whether or not they wish to allow the CD to automatically renew. Also in section 230.5(b)(1) it states that all disclosures required to be provided under section 230.4(b) are to be provided on the notice of maturity along with new interest rate and APY or telephone number where that info can be obtained. Section 230.5 covers subsequent disclosures and (b) states that it must be delivered at least 30 days before maturity or 20 days before the end of the grace period of at least 5 days.

The original question was:

Quote:

---

A question came up today on the annual cd notice. Can this be mailed anytime throughout the year or must it be mailed on the one year purchase date?

---

There is NO annual requirement. There is a Renewal Notice as pointed out by Deena, PABanker & Bananas.

You should not have a mailing to CD customers other than the Approaching Renewal Advice mailed 20 days before the end of the grace period.