We are wanting to try to increase deposits by offering a special rate CD with a minimum deposit.

In order to get this rate can we require that it be new money deposited? I know this may be impossible to control.

Thanks.

We have done that also - and it is stated that way in the advertisement.

Banks do it all the time on various products. Like Skittle says, make sure that is spelled out in any advertising and the retail folks are trained. As for controlling, the new account can't be funded with an internal account transfer or a check from an existing account.

You just have to be prepared on how you want to handle the squeaky wheels that have the money already on deposit with you and want the move it into your special. Either a hard no (which will never win you fans in the long run), perhaps ok with a certain amount of new money to accompany the current funds, or maybe along with a wink and nudge and let them know you'll do it for them this time as a favor, wink wink, or something else.

Whatever you do, make sure your front line is prepared to handle the request, and management is prepared to handle the not so pleased people if you take a harder approach. Clear guidance on how to handle current funds before the ad is released makes everyone's job easier.