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#2185546 - 07/16/18 08:03 PM Right to 7 days notice of withdrawal
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Joined: Nov 2008
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In the mountains
Is the following correct? -

The reservation of right to 7 days notice is a requirement for savings, MMDA and NOW accounts. It can also be a right reserved on interest bearing checking accounts that are not NOW accounts.
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#2185547 - 07/16/18 08:09 PM Re: Right to 7 days notice of withdrawal Likes to Comply
rlcarey Offline
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rlcarey
Joined: Jul 2001
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Galveston, TX
A demand deposit is a demand deposit. If you reserve a 7 day right of withdrawal, you turn a checking account into a NOW account.
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#2185550 - 07/16/18 08:26 PM Re: Right to 7 days notice of withdrawal Likes to Comply
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Is it acceptable to to that? Do you also mean that these accounts would be subject to the same eligibility requirements of a NOW account? Which shouldn't be a problem because these are personal accounts for individuals.
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#2185614 - 07/17/18 02:19 PM Re: Right to 7 days notice of withdrawal Likes to Comply
Adam Witmer Offline
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Originally Posted By rlcarey
A demand deposit is a demand deposit. If you reserve a 7 day right of withdrawal, you turn a checking account into a NOW account.

Randy, I was under the impression that requiring 7 days interest didn't automatically turn it into a NOW account.

"(2) The term demand deposit also means deposits or accounts on which the depository institution has reserved the right to require at least seven days' written notice prior to withdrawal or transfer of any funds in the account and from which the depositor is authorized to make withdrawals or transfers in excess of the withdrawal or transfer limitations specified in paragraph (d)(2) of this section for such an account and the account is not a NOW account, or an ATS account or other account that meets the criteria specified in either paragraph (b)(3)(ii) or (iii) of this section.

Thoughts?
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#2185791 - 07/18/18 08:25 AM Re: Right to 7 days notice of withdrawal Likes to Comply
rlcarey Offline
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rlcarey
Joined: Jul 2001
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Galveston, TX
Adam - Interesting question - I guess I was going on memory and did not pull up the definition. Although, I am a little unsure as to what this really means. It does not square well with 204.2(b)(3).
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