I have a question. I have read 1030.5 and quite a few previous threads on this topic but just want to make sure I am getting this correct. We are removing a CD product from our offering. As the current CD's mature we will be switching the customers over to another 18 month CD, the penalty is the same, the minimum balance is the same, the only thing different is the new CD is tiered where the old CD had a variable rate the first 120 days then was fixed.

Do we notify each customer at the time we remove the product from offering (have not offered it to new customers for years only if you already had the account type and were renewing it) or as each CD renews send the letter 30 days prior to that since that is the change date for that customer?

Thanks in advance for your help!

You simply send them a new full CD disclosure prior to maturity in accordance with the timing requirements:

1030.5(b)(1) Maturities of longer than one year. If the maturity is longer than one year, the institution shall provide account disclosures set forth in Sec. 1030.4(b) of this part for the new account, along with the date the existing account matures. If the interest rate and annual percentage yield that will be paid for the new account are unknown when disclosures are provided, the institution shall state that those rates have not yet been determined, the date when they will be determined, and a telephone number consumers may call to obtain the interest rate and the annual percentage yield that will be paid for the new account.