Savings account excessive withdrawals: We have our third letter informing the customer to come in the bank to discuss and decide on a suitable account type within 10 days, otherwise the account will be changed to a "Regular" demand deposit account, etc. Is there anything in Reg D that permits us to just close account and send check to customer. The reason the excessive withdrawals - the kids are using "Gramps" account for ACH items (also bring him by drive thru and get cash). I feel we can close the account at our discretion, as this could be construed as "elder abuse". I certainly don't want to change the account to checking - that could be worse.

Choosing to close the account has nothing to do with excessive withdrawals. You most likely reserve the right to close any account at any time for any reason.

File your SAR, report to your State if required, and kick it down the road for someone else to worry about.