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#2039907 - 09/22/15 04:38 PM Reg. DD account disclosure requirements for CDs
corporate audit Offline
Junior Member
Joined: May 2008
Posts: 35
According to Regulation DD, §1030.4 (b)(1), for fixed-rate accounts the period of time the interest rate will be in effect is required to be disclosed. Would just having the maturity date listed on the disclosure address the requirement? Our should the disclosure include verbiage that the “interest will be paid to maturity”?

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#2039916 - 09/22/15 05:03 PM Re: Reg. DD account disclosure requirements for CDs corporate audit
Doug Hendrickson Offline
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Doug Hendrickson
Joined: Oct 2009
Posts: 3,927
From the official interpretation:

1030.4.b(1)(1)2

2. Fixed-rate accounts. For fixed-rate time accounts paying the opening rate until maturity, institutions may disclose the period of time the interest rate will be in effect by stating the maturity date. (See Appendix B,, B-7--Sample Form.) For other fixed-rate accounts, institutions may use a date (“This rate will be in effect through May 4, 1995”) or a period (“This rate will be in effect for at least 30 days”).
_________________________
I hear and I forget. I see and I remember. I do and I understand.--Confucius

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#2039936 - 09/22/15 06:11 PM Re: Reg. DD account disclosure requirements for CDs corporate audit
corporate audit Offline
Junior Member
Joined: May 2008
Posts: 35
So as it is written in the commentary, institutions may disclose the period of time the interest rate will be in effect by stating the maturity date. Does that mean you only need to disclose the maturity date? If you look at sample form B-7 the verbiage included is "you will be paid this rate until the maturity date of the certificate".

A bit confusing!

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#2039972 - 09/22/15 07:29 PM Re: Reg. DD account disclosure requirements for CDs corporate audit
Doug Hendrickson Offline
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Doug Hendrickson
Joined: Oct 2009
Posts: 3,927
The way I read it, you need only the maturity date if the interest rate is staying the same throughout the life of the deposit.

Since we use DepositPro for our notices, it actually not only lists the maturity date, but then goes on with verbiage to indicate that the interest rate and APY will not change for the term of the account and will be in effect until the stated maturity date. Seems like they wanted to cover all bases!
_________________________
I hear and I forget. I see and I remember. I do and I understand.--Confucius

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#2039986 - 09/22/15 07:57 PM Re: Reg. DD account disclosure requirements for CDs corporate audit
corporate audit Offline
Junior Member
Joined: May 2008
Posts: 35
Thanks the disclosure I am reviewing only has the maturity date.
Last edited by corporate audit; 09/22/15 07:58 PM.
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