We used to have Christmas club accounts and books where you could put in X amount of money inot your account, lets say it was a $20 club which meant that if all payments were made you would end up with $1,000 plus interest at the end of the term. We had the customer sign a signature card, OFAC, etc. Then next year if everything stayed the same we would just have them sign an addendum that everything stayed the same and would attach it to the original card. If anything changed, then we would require a new card.

We now have a computer system that lets people put in as much as they want. So, lets say that $20 club at term has $2,500 in it instead of $1,000 plus interest at term. Even though I'm the compliance officer, I have been over-ruled and it has been decided that we won't require a new signature card if the amount of the club changes from lets say a $10 club to a $20 club. We will just note it on the addendum and still keep it with the original card. My boss says we shouldn't advertise that we offer $5, $10, and $20 clubs and instead let people put in whatever they want because it won't matter since we pay interest.

Does anyone else see a problem with this or is it just me?! Please let me know what you do. Thanks!!

We offer Christmas club accounts and do not specify how much customers should place in the account. The customer decides how much and generally has it transferred on payday from their checking to the CC account. It automatically rolls over with the new year unless the customer calls to stop it. I love it!

At my last bank we avoided the reopening issue by allowing the account to remain open for a specified period after payout. The account would automatically pay out on 10/31 and if the customer made a deposit before 1/31 the account remained active. If no deposit was made it would close on 2/1 and the customer would have to open a new account. It worked well for us.

Same here (same as BrendaC, that is).

Same here (and past banks) no limits on contributions, and the accounts are set up to remain open for up to 3 months with a zero balance. Check automatically cuts on 11/15 and is mailed to the customer, or swept to another account (their choice).