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?

Thanks.

See 12 CFR 230.5 in Truth In Savings

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.

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

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.