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#1298 - 04/11/01 02:21 PM Interest Rate Change on Interest Bearing Accounts
CFreasier Offline
Junior Member
Joined: Mar 2001
Posts: 25
Corpus Christi, TX, USA
Can anyone tell me what the reg is on changing the interest rates on interest bearing accounts such as savings and money market accounts? Are these considered variable rate accounts? Does the customer need to be notified? If so, is there a waiting period between notifying them and changing the rates?


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General Discussion
#1299 - 04/11/01 02:41 PM Re: Interest Rate Change on Interest Bearing Accounts
Ted Dreyer Offline
Diamond Poster
Ted Dreyer
Joined: Apr 2001
Posts: 2,245
See 12 CFR 230.5 in Truth In Savings

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#1300 - 04/11/01 03:12 PM Re: Interest Rate Change on Interest Bearing Accounts
Andy_Z Offline
10K Club
Joined: Oct 2000
Posts: 27,546
On the Net
TISA (Reg. DD) is likely your biggest concern here, as Ted noted. But you may check and see if any of your state's laws will apply as well, and any terms in your deposit agreement.

In a nutshell, you have to what the account types are, how they were disclosed and that will influence whether or not a 30 day notice is required under TISA.

Andy Zavoina
Opinions stated are not necessarily that of my employer.

My opinions are not necessarily my employers.
Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell

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#1301 - 04/11/01 08:29 PM Re: Interest Rate Change on Interest Bearing Accounts

What you need to look at are the TISA Disclosures that are given to customers when the account is opened. We change rates on our Money Market and Savings Accounts when the CFO wants to. We have it clearly stated on the TISA disclosure for each product that the rates can change at any time and that they are not tied to any index.

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