Skip to content
BOL Conferences
Thread Options
#2111231 - 12/16/16 08:33 PM CD and Disclosures
Live 2 Comply Offline
Gold Star
Live 2 Comply
Joined: Sep 2009
Posts: 341
We are starting CD special and management wants this only to be available to customers that get this interested credited into a savings or checking account with our bank or added to the CD. The goal is to cut less paper checks and also bring in more deposit accounts. Should this requirement be added on our Truth-in-Savings Disclosure? On our CD Account Agreement, I cannot really find a section for additional terms to add this like we have on other TIS.

Return to Top
Deposits and Payments
#2111242 - 12/16/16 08:47 PM Re: CD and Disclosures Live 2 Comply
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
A lot of banks have already put the "paper interest check" to bed. You can require that interest be paid to another account at your bank or compounded in the CD account. If you do so, I'd recommend building that restriction into your CD contract and TISA disclosure for this account.
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top
#2111244 - 12/16/16 08:53 PM Re: CD and Disclosures Live 2 Comply
Doug Hendrickson Offline
Power Poster
Doug Hendrickson
Joined: Oct 2009
Posts: 3,927
If you can, I'd also try to ensure that your account opening system requires/allows that only one of those options (and not others) are selected for this type of account. No sense putting it into the disclosure/contract if your customer service folks can get around it and cause issues down the road.
_________________________
I hear and I forget. I see and I remember. I do and I understand.--Confucius

Return to Top
#2252250 - 04/12/21 08:12 PM Re: CD and Disclosures Live 2 Comply
Compliance504 Offline
Platinum Poster
Joined: Dec 2008
Posts: 729
Tennessee
Just want to verify....there is no requirement anywhere to offer interest checks....

If we want to stop issuing them on existing accounts...can we do so with a 30 day notice?

Return to Top
#2252270 - 04/13/21 12:06 PM Re: CD and Disclosures Live 2 Comply
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,364
Galveston, TX
You cannot unilaterally change an existing CD contract.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top

Moderator:  John Burnett