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#786882 - 08/01/07 02:02 PM "Internet" CDs - Does anyone offer them?!?
VickiS Offline
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VickiS
Joined: Feb 2002
Posts: 127
Madison, Wisconsin
Good Morning --

We are considering offering an "Internet" CD to a specific group of customers, and are wondering whether many banks are doing this.

If so, would anyone be willing to offer any advice in regards to CIP, etc.?

Thanks,

Vicki S.

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eBanking / Technology
#787279 - 08/01/07 06:48 PM Re: "Internet" CDs - Does anyone offer them?!? [Re: VickiS]
VickiS Offline
100 Club
VickiS
Joined: Feb 2002
Posts: 127
Madison, Wisconsin
Maybe there is some confusion as to what I'm asking. What we are intending to do is to allow customers to open a specific type of Certificate of Deposit via the internet. As this is new territory for us, we want to not only ensure that we are following all requried compliance rules, but also that we are following strong safety and soundness procedures.

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#791191 - 08/08/07 04:32 PM Re: "Internet" CDs - Does anyone offer them?!? [Re: VickiS]
KBee Offline
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Joined: Apr 2003
Posts: 20
Vicki,it doesn't look like you have gotten any responses, so I will tell you what we are doing. We permit customers to apply for a CD account through our website. We do a CIP check of the customer before we open the account just as we would with any customer. Funds to purchase a CD can either be wired to our bank or the customer can authorize an electronic debit to their checking or savings account at another bank. We have a special disclosure for CDs that are purchsed this way which specifies that no withdrawals will be permitted for 90 days. Otherwise, the process is very similar to a customer who contacts us by telephone or regular mail. Hope this is helpful.

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#791225 - 08/08/07 05:21 PM Re: "Internet" CDs - Does anyone offer them?!? [Re: KBee]
Titanic Offline
Gold Star
Titanic
Joined: Feb 2005
Posts: 300
My Workplace
I agree with Kbee.

Your current CIP procedures for opening accounts at face-to-face level should be the based to tailor procedures for online accounts.

I would definetively conduct a risk assessment as well.
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[b]"Common sense is not so common." Voltaire~[u]

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#793151 - 08/10/07 11:33 PM Re: "Internet" CDs - Does anyone offer them?!? [Re: Titanic]
Baseball2013 Offline
Member
Baseball2013
Joined: Sep 2006
Posts: 70
We're going to start offering savings and CD's online through our Online Banking provider and a third-party partner of theirs. We're part way through the risk assessment process and I've looked around for other banks to see how they tackled their risk assessment as well as their procedures for Online Account opening.

The one bank I've been able to contact/discuss the issue with is an online-only bank, and does things a lot differently than we plan to.

Is anyone else doing this at this time? We're going to be using the CashEdge OpenNow/FundNow product.

Any help would be appreciated.

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#846549 - 10/31/07 06:52 PM Re: "Internet" CDs - Does anyone offer them?!? [Re: Baseball2013]
Carolyn31 Offline
100 Club
Joined: Nov 2005
Posts: 101
Nebraska
How are you handling the disclosures required at account opening? Specifically the section 230.4(a)(ii)? Is your disclosure (complete with the maturity date) available before the acccount is opened?

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#933892 - 04/01/08 05:57 PM Re: "Internet" CDs - Does anyone offer them?!? [Re: KBee]
SaaL Offline
Gold Star
Joined: Mar 2008
Posts: 294
The Texas Hill Country
Wondering if any of you who were considering were ever able to get comfortable with this and establish some procedures - and if so, would you be willing to share? We're considering opening accounts on-line but are having some trouble getting comfortable with the idea - particularly for new customers.
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