Ad reads, "Free checking with direct deposit and online banking." There are no account charges so long as the customer has a direct deposit and is signed up for online banking.

Because the word "free" is out of favor with examiners and there is a condition attached to the account, do you think the bank will be criticized for describing the account as free?

Since there could be a fee if account conditions are not met, I can guarantee that the bank will be criticized.

See Reg DD 1030.8

Sec. 1030.8--Advertising

(a) Misleading or inaccurate advertisements. An advertisement shall not:

(1) Be misleading or inaccurate or misrepresent a depository institution's deposit contract; or

(2) Refer to or describe an account as “free” or “no cost” (or contain a similar term) if any maintenance or activity fee may be imposed on the account. The word “profit” shall not be used in referring to interest paid on an account.