Skip to content
BOL Conferences
Thread Options
#2302261 - 10/04/24 01:40 PM Changing definition of new money
Traceyb258 Offline
Junior Member
Joined: Sep 2018
Posts: 27
Good morning,

Our Management Team is running certificate special which allows for a higher rate for new money. When the special began new money was defined as bank-to-bank transfers, cash deposits, checks deposited from another financial institution, and wire transfers. They are finding current members are withdrawing their money, depositing into another bank and then bringing it back two days later. I know, surprise right? To combat this, they now want to include the following statement in their disclosures. Existing money transferred from our institutions account and brought back to qualify as new money must be out of the account for at least thirty (30) days. Account balance histories will be utilized to verify the qualification of earning the higher yield. My question is, is this a UDAPP violation? Can we make changes to the definition of new money midstream?

Return to Top
Marketing
#2302262 - 10/04/24 01:47 PM Re: Changing definition of new money Traceyb258
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 85,059
Galveston, TX
You can change the rules anytime that you want to. Sounds like a nightmare to police however.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2302268 - 10/04/24 02:21 PM Re: Changing definition of new money Traceyb258
Traceyb258 Offline
Junior Member
Joined: Sep 2018
Posts: 27
Yes it does. Glad I'm not the one who needs to monitor it. Thank you for your help.

Return to Top

Moderator:  Andy_Z, MoneyMaker