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#681730 - 02/07/07 03:42 PM Capitalization Notice for CD's
bugleboy Offline
100 Club
Joined: Jan 2005
Posts: 136
Ohio
Our bank currently mails a notice to time deposit holders that the interest earned was paid and added to the account (capitalization). This is not a renewal or maturity notice. We are thinking of turning this notice off and not sending it but want to confirm there is not regulatory or compliance requirement to notify CD customers that the interest was added to the account under the terms of their account agreement. My belief it that this notice is not necessary and not a compliance issue. Are we OK to stop sending this notice?
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Rudeness is the weak man's imitation of strength...Eric Hoffer

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Operations Compliance
#682305 - 02/07/07 09:58 PM Re: Capitalization Notice for CD's bugleboy
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
I know of no federal rule that requires such a notice, and I doubt there are any state rules, either. Do check to see if the Buckeye State has such a rule, however, before dumping these notices.
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John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

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#682974 - 02/08/07 05:42 PM Re: Capitalization Notice for CD's John Burnett
bugleboy Offline
100 Club
Joined: Jan 2005
Posts: 136
Ohio
Thanks John, I appreciate the advice.
_________________________
Rudeness is the weak man's imitation of strength...Eric Hoffer

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