I'm hoping to find out how others structure their club accounts so as to avoid classifying them as time accounts. We want to avoid the pre-maturity notice requirement associated with time accounts. Any insight would be greatly appreciated. Thanks!

One thought -- allow customers to withdraw prior to normal disbursement date, reserve the right to require 7 days' notice of withdrawal, and they become savings accounts, right?

Can we charge a $25 service charge for closing the account before maturity and still have it classified as a savings account? I am being told that "services charges" assessed at any time before maturity and forfeiting only six days accrued interest within the first six days after the account is opened are ok, but charging more than seven days interest for withdrawals made during the first six days are what would make it a time account. Does anyone agree or disagree? I am up in the air on the $25 service charge that would be charged during the first six days if the account is closed within those first six days. Any opinions would be appreciated.

All time accounts must provide for a penalty for early withdrawal. That does not mean, however, that all accounts with a penalty for early closeout are time accounts.

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