We allow customers to set up automatic transfers from checking to savings or money market accounts. An example is $50 a month to savings. Do these type transfers fall under the disclosure requirements for sweeps? The regulation states "if the insitution uses sweep arrangements or takes other actions that result in funds being transferred...." My concern is "takes other actions". Any thoughts are appreciated.
#1101319 - 12/23/0802:48 PMRe: Transaction Account Guarantee Program Notices ATLbanker
MN Banker
Platinum Poster
Joined: Aug 2006
Posts: 980
I called the FDIC on this and was told that these are considered "sweeps". Fortunately for us we have very few non-interest bearing transaction accounts (and our NOW accounts don't qualify), so we don't have that many.