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#933 - 03/14/01 09:50 PM Savings Statements
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Joined: Mar 2001
Posts: 1
We are considering to stop sending quarterly savings statements. Of course, Reg E statements will still be sent monthly, but savings accounts with normal deposits and withdrawals are the ones under consideration. Can we do this? We are going to give notice and include that the customer can call and request a statement if they wish.

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General Discussion
#934 - 03/23/01 07:16 PM Re: Savings Statements
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 39,629
Cape Cod
If the account is not receiving EFT credits or debits, I am aware of no federal requirement that you issue a statement.

Check your state law and then, before doing anything, ask a few reliable customers their impressions of your idea. If it passes the laugh test, no problem. If you get customer resistance, you may be cutting off your nose to spite your face.

Good luck!

[This message has been edited by John Burnett (edited 03-23-2001).]

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#935 - 03/27/01 07:18 PM Re: Savings Statements
Lucy Griffin Offline

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Lucy Griffin
Joined: Nov 2000
Posts: 1,544
As John says, there is no federal requirement for statements unless it is triggered by an electronic transfer. Statements for savings accounts are actually a fairly recent development. I'm old enough to remember the days of passbooks. They were updated when you came into the bank with your pile of quarters (which was what babysitters were paid with in my day) to make a new deposit.

However, as John also points out, your new practice must pass the laugh test. Don't decide to save trees and postage unless your customers will support the idea. You can always try to sell them on electronic statements.


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#936 - 03/30/01 06:44 PM Re: Savings Statements
Jim T Offline
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Joined: Mar 2001
Posts: 6
Forest, MS USA
I had considered changing our quarterly statement savings accounts to a semi-annual statement for cost savings also. In researching this I looked at Reg E 205.9(b)that covers periodic statements. It says:

(b) Periodic statements. For an account to or from which electronic fund transfers can be made, a financial institution shall send a periodic statement for each monthly cycle in which an electronic fund transfer has occurred; and shall send a periodic statement at least quarterly if no transfer has occurred.

I believe the operative phrase is CAN BE MADE. If you permit that class of savings accounts to have electronic funds transfers, whether they have them or not, then I read the Reg to say that you must have at least quarterly statements. If you get a different read on this I would appreciate your view.

We decided to stay with the quarterly statments rather than to set up another class of savings accounts that we would not permit electronic funds transfers.


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#937 - 05/24/02 05:07 PM Re: Savings Statements
Anonymous
Unregistered

Am I correct in my understanding that maintenance charges and monthly interest are not included when determining EFT debits or credits for purposes of sending a monthly statement? For example, if an ATM card is attached to a savings, but the only electronic credit or debit to the account this quarter are service charges and interest payments is it okay to send a quarterly statement? Thanks

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#938 - 05/24/02 05:23 PM Re: Savings Statements
David Dickinson Offline
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David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
You are correct that INTERNAL transfers are not EFT's. See 205.3(b).
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