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#1406199 - 06/21/10 06:12 PM Certificates of Deposit - withdrawals
Spenser Offline
Member
Joined: Apr 2006
Posts: 52
Washington state
My bank is building a certificate of deposit which will allow penalty-free monthly withdrawals. Does anyone else offer this type of product? What we want to know is, if we observe the rule regarding "withdrawal penalties of at least seven days' simple interest on amounts withdrawn within six days after each partial withdrawal", is there a limit to the number is penalty-free withdrawals that can be taken, during the term of the account?

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General Discussion
#1406257 - 06/21/10 07:36 PM Re: Certificates of Deposit - withdrawals Spenser
Georgia Plum
Unregistered

Are you saying one withdrawal per month, or more than that?

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#1406370 - 06/21/10 08:55 PM Re: Certificates of Deposit - withdrawals
Spenser Offline
Member
Joined: Apr 2006
Posts: 52
Washington state
It could be only once a month, but what if they wanted to withdraw every seven days? Would there be any limit, by regulation, as to how many withdrawals they could make, as long as the time in between was seven days or more?

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#1406377 - 06/21/10 09:01 PM Re: Certificates of Deposit - withdrawals Spenser
David Dickinson Offline
10K Club
David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
As long as there is 6 days between withdrawals, Reg D allows it. Therefore, you could allow a withdrawal every Monday. Your monthly withdrawals is fine as long as there is a minimum of 6 days between debits.
_________________________
David Dickinson
http://www.bankerscompliance.com

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#1406393 - 06/21/10 09:12 PM Re: Certificates of Deposit - withdrawals David Dickinson
Spenser Offline
Member
Joined: Apr 2006
Posts: 52
Washington state
Thanks very much!

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