I've not been the Compliance Officer long and an executive has asked that I look into this, and I don't know where to start so I am searching for a little guidance.

Currently our Jumbo CD's require a minimum deposit of $100k. The question is, can we raise the minimum opening amount to $250k? Is there guidance on this or is this set at the banks discretion?

Thanks!

Bank's can set whatever minimum opening deposit they wish for a product provided that it is accurately reflected in advertising and Truth-in-Savings disclosures.

Such a move should be discussed with your ALCO committee since deposits in excess of $100,000 are not considered core deposits so moving non-core deposits into a regular CD product depending on the rate differential could impact their liquidity planning.

From a fading memory: The term "jumbo" was drawn from regulations limiting the amount of interest banks could pay on time deposits in the previous century; i.e. a "jumbo" was a time deposit of $100,000 or more on which the bank could set its own rate structure. The term no longer has a legal meaning; if your bank wants to say a "jumbo" time deposit is any exceeding $250,000 no one is going to correct you citing law or regulation.

Note Brian's cautionary language beyond the use of an adjective.

Coming from an only slightly older perspective than Elwood, I can confirm his memory of the jumbo CD as one that wasn't subject to Reg Q rate limits. Those limits started phasing out in 1980 and haven't been relevant for a couple of decades or more.