Hold Forms for Savings Accounts
Question: Can we use the same form when we put a hold on a savings account deposit that we use on our checking accounts? We don't have the same configuration of account numbers for the two accounts. Would that make a difference?
Answer: Your hold forms are meant for demand deposit accounts and are required as a result of the rules of the Expedited Funds Availability Act (more familiar as Reg CC). The EFAA only applies to demand deposit accounts. You are not required to notify your customer when you place a hold on a savings account. I'd be willing to bet your hold form says somewhere that you are placing a hold "...as permitted under the EFAA..," etc. That's not true for savings accounts - no need to use a form. We wouldn't recommend it.
Copyright © 2005 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 15, No. 5, 6/05
First published on 06/01/2005