Reg. CC defines a new account in 229.13(a)(2) as:

An account is not considered a new account if each customer on the account has had, within 30 calendar days before the account is established, another account at the depositary bank for at least 30 calendar days.

If I read this correctly, you cannot use a new account exception hold IF ALL of the account holders on the "new" account have had transaction accounts with your institution that are 60 days or more old at the time that the "new" account was opened. Is that correct? Please help me word this in a fashion where it can be easily understood.

Thanks!

If any of the customers on the new account has NOT has a transaction account with you for the last 30 days, you may consider the account a new account.

However, if all of the customers on the account have had another transaction account with you for the last month (singly or jointly), you may not consider the account "new" for purposes of section 229.13(a).

Sam, Sarah and Josie are opening a new joint account. Sam and Sarah have another joint account with the bank, and Josie has her own account with you. You cannot use the new account exception hold on this new joint account.

Harry and Sally are opening a new joint account. Sally has another account with you, but Harry is new to the area and banks elsewhere. You can use the new account exception hold on the new joint account.

Thank you!

Are we required to give a written notice to a new account holder of a hold on a deposit during the 30 days?

Technically, no, if you've informed them of your policy to treat new accounts differently, and if you're using the new account exception hold. If you use any of the other exception holds (large item, reason to doubt, etc.) you have to provide the notice.

Interesting because during a recent FDIC exam, the EIC told us that a written notice was required on a new account. We were using the hold forms from BankersSystem which does not list New Account as an exception hold reason.

The EIC is incorrect if you were using the new account exception. Here's the language from the regulation:

Notice of exception--(1) In general. Subject to paragraphs (g)(2) and (g)(3) of this section, when a depositary bank extends the time when funds will be available for withdrawal based on the application of an exception contained in paragraphs (b) through (f) of this section, it must provide the depositor with a written notice.

The new account exception is in paragraph (a) of the section, which is not covered in the requirement.