Does anyone know if there are any kind of stipulations to HAVING to cut CD interest checks and mail to the customer rather than sending it to them electronically and directly depoisiting to their account?

Also:
If we revise our TISA disclosure to state "we will deposit the interest in an account that you designate" (and not include mailing the check) will this work?

Thank you in advance.

For current Certificates, you would have to be guided by the agreement you have with these customers until their CD matures, in my opinion. You can't change policy midstream.

For Certificates you open going forward, I believe you can make the decision to only add interest to the CD or direct deposit it to an account they specify (not offer the option of a paper check). You'd have to change your disclosure to say so, of course.

I am unaware of any regulation that says you must provide paper checks for interest. However, be aware that this may be a very unpopular change with your customers. I know a lot of our customers really want that check mailed to them every month/quarter.

At a prior bank (several years ago)we did not issue interest checks under $10.00 but the interest could be direct deposited into another account. I do not recall the mechanics of how it worked.

Thank you!!!

We limit paying interest by checks all together unless the balance of the cd is $xx,xxx or greater. It's in our Terms & conditions as well. We didn't have much pushback when we switched, however we did allow the customers who were already receiving checks to continue to do so, but not if they opened a new CD- only on existing. (grandfathered). It's not worth the cost, or time at today's rates unless the balance is higher.

That's what our concerns are New2Comply. We're having to cut small checks (sometimes .36) and send a check....not worth it.

We'll just have to continue with grandfathered ones until they faze out.

Thanks for your input.