I know that I have read somewhere that we cannot allow a customer to withdraw money from a certificate of deposit for X days after the deposit was made. or something to that effect.

Can someone point me to the correct site for this?

Thanks

Regulation D, Section 204.2(c).

thank you John

After reading 204.2(c) am I correct in that if we have a certificate of deposit and we allow periodic deposits into that account, we probably shouldn't allow any deposits 6 days prior to maturity or we would have to penalize the customer if they close the cd at maturity, on the deposit that was made within the 6 days prior to maturity?

Sorry if that's confusing. I'm concered about the individual that may want to set a direct deposit up into this type of certificate. And the potential issue we may have if we accept a deposit a few days prior to maturity.

Am I interputing this correctly?

I think you are interpreting it correctly, Linda. If the problem arises, you probably should delay the ability of the customer to access the CD until the week has past since the last deposit.

That said, if one of these slips through your controls, you shouldn't panic. Just check out the controls you have in place and try to prevent the scenario you've described.

thank you, again.